Guilford To Trim Yarn Operations

Guilford Mills Inc., Greensboro, N.C., will close its Greensboro warping plant and reduce
operations at its spinning and warping plant in Fuquay-Varina, N.C., eliminating 230 jobs. The
plants supply polyester yarn for Guilford’s automotive interiors, performance apparel and technical
textile operations; and also for external customers. Guilford CFO David Taylor said waning external
sales due to lower-cost imports have led to underutilization at the two facilities. Yarn operations
will be consolidated at Fuquay-Varina, which will continue to employ 175 associates.

In other news, Guilford announced CEO John A. Emrich has resigned.

May 2005