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PGI Board Is Looking At Its Options

April 7, 2010

Alternatives could include sale, merger or recapitalization.

The board of directors of Charlotte, NC-based nonwovens producer PGI is evaluating strategic alternatives to unlock shareholder value created by the company's strong performance in fiscal 2009, its continued investment in growth initiatives and its significant improvement in financial flexibility.

The strategic alternatives could include, among other things, the sale, merger or recapitalization of the company. These actions are also the result of the company's desire to provide its existing stockholders with liquidity alternatives. The company has not set a definitive timetable for completion of its evaluation and there can be no assurances that the process will result in any transaction being announced or being completed. The company does not intend to disclose developments regarding this process unless and until the Board of Directors has approved a specific transaction.

The board of directors has established a special committee comprised of independent directors to evaluate the strategic alternatives. The company has retained Blackstone Advisory Partners LP as its financial advisor and Cravath, Swaine & Moore LLP as its legal advisor to assist in its evaluation. The special committee has retained Janney Montgomery Scott LLC as its financial advisor and Richard, Layton & Finger as its legal advisor to assist in its evaluation.

Private equity firm MatlinPatterson owns 65% of the company, according to Reuters data, picking up its controlling stake when PGI emerged from bankruptcy in 2003. It has a market capitalization of about $350 million. Sales were reported at just over $880 million in 2009.