American Fibers & Yarns Eagerly Anticipating Future

CHAPEL HILL, N.C. (Aug. 5, 2002) -- The textile industry has been hard hit by the slumping United States economy, but for some manufacturers the outlook is brightening.

Although the industry has faced difficult times -- including a 13-year low in sales in 2001 as a result of the nationwide recession, weak consumer confidence and increasing imports -- American manufacturers are adjusting and working to get back on track. As a result, companies like American Fibers & Yarns Company (AF&Y) are eagerly anticipating what the future may hold.

“ Last year was tough on almost everyone in the textile industry,” said Mike Apperson, president and CEO of AF&Y. “For some companies, 2002 hasn’t been much better. But we are very fortunate to have recovered successfully from those hard times. Not only has American Fibers and Yarns met all of our financers’ targets for the company, but we are also ahead of all of the goals we set for ourselves.”
Apperson attributes AF&Y’s improving outlook to:

- Debt reorganization in first-quarter 2002,
- An additional financial investment by majority owner Monitor Clipper Partners, and
- An expanding customer base.

AF&Y Anticipating Future

In addition to achieving its revenue and manufacturing goals to date in 2002, AF&Y completed its debt reorganization and refinancing in February under proactive terms with positive results. Majority owner Monitor Clipper Partners also made an additional significant financial investment to the fiber manufacturer earlier this year. The private equity investment firm currently manages more than $725 million of capital.

“ The textile industry has been attempting to adapt to the ever-growing import market,” explained Apperson. “We at AF&Y believe we have an edge in our service, flexibility, yarn fiber technology development and enhanced color services over foreign markets. Our mission is to continuously improve in all areas where we can support and enhance our customers’ success.”

American Fibers & Yarns Company is a premier supplier of synthetic filament yarn to the home furnishings, contract, hospitality, apparel, automotive and industrial markets. AF&Y began as Phillips Fibers Corporation, a subsidiary of Phillips Petroleum Company. In 1993, Amoco Fabrics and Fibers Corporation, a subsidiary of Amoco Oil Corporation, purchased Phillips Fibers Corporation. The combined companies became the largest U.S. supplier of polypropylene filament yarns, staple fiber, needle punch non-wovens and carpet backing. In 1999, Amoco Fabrics and Fibers Corporation sold the fibers division to a private equity firm, Monitor Clipper Partners of Cambridge, Mass. The company is now headquartered in Chapel Hill, N.C.

Contact:
Melanie Whitfield,
Walker Marketing & Advertising
(704) 782-3244, mwhitfield@vnet.net
-or-
Nikki Rainey,
American Fibers and Yarns Company
(864) 235-5651, nrainey@afyarns.com