Cerberus To Acquire Guilford Mills

An affiliate of New York City-based Cerberus Capital Management LP has made a cash tender offer
valued at $107 million to acquire Guilford Mills Inc., Greensboro, N.C., an engineered automotive,
technical and apparel fabrics producer. According to terms of an agreement approved by Guilford’s
Board of Directors, Cerberus has offered to pay $19 per share for all outstanding Guilford shares.
The deal is expected to be completed by the end of this quarter.

Guilford emerged from bankruptcy in late 2002. Last fall, the company retained Goldman Sachs
& Co., New York City, to help it explore strategies, including possible sale of the company, to
maximize shareholder value.

Following the acquisition, the Cerberus affiliate will merge with Guilford Mills, and
Guilford’s current management will continue.

Guilford Mills’s product offerings include automotive fabrics.

“I’m very excited to see Guilford placed in the hands of people who share our vision for
building this company,” said John A. Emrich, president and CEO. “They believe in this company and
our operations, and they fully support our plans for growth.

April 2004