Guilford ReorganizationPlan Receives Final ApprovalFollowing a vote of acceptance by its creditors
and stockholders, Greensboro, N.C.-based Guilford Mills Inc. has received final approval from the
U.S. Bankruptcy Court for its reorganization plan. After nearly two years of restructuring and six
months of financial reorganization, we have Guilford positioned exactly where weve wanted all
along, said John A. Emrich, president and CEO.Guilford prenegotiated several aspects of the plan
with its creditors prior to filing for bankruptcy protection last March. Under the plan, the
company will pay all suppliers in full. Senior lenders will own 90 percent of the company, leaving
the remaining 10-percent ownership to existing shareholders. Senior debt will be reduced to $145
million from $270 million owed prior to its bankruptcy filing.Over the past year, Guilford has been
selling off certain assets related to apparel and home fashions in order to focus on producing
fabrics for automotive, technical textile and select apparel markets.
October 2002

The U. S. Trade Negotiator has agreed to permit importation of cotton trousers from Bangladesh in
excess of that nations import quota, but the U.S. will cut next years quota by three times the
amount of this years overshipment. Some 175,000 dozen pairs of cotton trousers have been embargoed
since mid-summer, as the two governments tried to decide what to do about the overshipments.
Importers urged the U.S. government to release the trousers, contending that stores needed them in
time for Christmas sales. The U.S. textile industry and its supporters in Congress insisted that
that quota should be enforced.Bangladesh at first asked that the overshipment be forgiven, and when
that was turned down, it asked to borrow from next years quota, as has been the practice in some
cases in the past. In the end, the U.S. government settled on releasing the embargoed shipments,
but levied a penalty on next years imports.Retailers who had been pressing to receive the goods
were satisfied with the compromise, but noted that it presents a problem for Bangladesh. Parks
Shackelford, president of the American Textile Manufacturers Institute (ATMI), while pointing out
that his organization does not believe overshipments should be permitted, said that under the
circumstances, the governments action was a reasonable compromise.

Glenoit Fabrics Looks AheadNew York City-based Glenoit Fabrics (H.G.) Corp., formerly the sliver
knit pile fabric division of Glenoit Corp., is forming new supplier relationships, as well as
strategies to increase its global market share for pile fabrics.The company is now the North
American division of the China-based Haixin Group International Ltd., also a manufacturer of pile
fabrics. Haixin purchased the division from Glenoit Corp. earlier this year.Glenoit is working with
suppliers of acrylic and modacrylic fiber and raw materials including Germany-based Dralon and
Japan-based Mitsubishi, Kaneka and Mitsui to develop new fibers for Glenoit to use in its
fabrics.The company also is looking into new markets. Glenoit and Haixin pile fabrics currently
comprise approximately 25 percent of global production of these fabrics.Our manufacturing
flexibility allows us and our customers a range of economic, geographic and logistical advantages,
said Larry Levine, president and COO, Glenoit Fabrics. The company can supply fabric from its U.S.
and Canadian mills and from Haixins mills in China, as well as provide complete manufacturing
services as needed.
October 2002

Guilford Mills, Inc. announced that its previously-confirmed plan of reorganization became
effective today (October 4, 2002). The announcement marks the Company’s swift emergence from
bankruptcy proceedings, which commenced only 6 1/2 months ago.The bankruptcy court had approved
Guilford Mills’ reorganization plan on September 19, 2002, after the Company’s creditors and
stockholders had voted overwhelmingly to accept it.Emerging from bankruptcy, Guilford Mills now has
senior debt of approximately $145 million, down from $270 million when it entered the proceedings.
The senior debt consists primarily of a three-year revolving credit facility and a three-year term
loan. The Company’s suppliers are being paid in full. Guilford Mills’ senior lenders now own 90% of
the Company’s equity.”I spent a few days after the court’s September 19 approval visiting with many
of our 3,500 associates, thanking them for their tireless efforts to bring this reorganization to a
successful conclusion,” said John A. Emrich, Guilford Mills’ President and Chief Executive Officer.
“I saw a work force that is fired up and ready to take on the world. I’m very excited about what
we’re going to accomplish over the next year.”Today, the effective date of the reorganization plan,
all shares of Guilford Mills’ existing common stock (“Old Common Stock”), will be cancelled, and
the Company will issue its new common stock (“New Common Stock”): 90% to its senior lenders and 10%
to its existing common stockholders pro rata.The record date under the plan of reorganization for
determining the existing common stockholders who are entitled to receive shares of New Common Stock
is the close of business on October 3, 2002. After the record date, the Company is not required to
recognize or process any further changes in the holders of Old Common Stock.Shares of New Common
Stock will be issued to record holders at a ratio of approximately one (1) share of New Common
Stock for every 34.776338 shares of Old Common Stock. No fractional shares of New Common Stock, or
cash in lieu thereof, will be issued to a holder. Instead, fractions of one-half or greater will be
rounded to the next higher whole number and fractions of less than one-half will be rounded to the
next lower whole number. All shares of Old Common Stock will be automatically cancelled.The
issuance and distribution of shares of New Common Stock, which will be processed by the Company’s
transfer agent, American Stock TransferandTrust Company, will take place as soon as possible.
Shareholders need not return their Old Common Stock certificates or take any other actions in order
to receive shares of New Common Stock. The Company expects that there will be approximately 5.5
million shares of New Common Stock outstanding immediately following the issuance under the plan of
reorganization.New Common Stock will be quoted on the OTC Bulletin Board (“OTCBB”) initially under
a new ticker symbol “GMILV,” and within several days, the symbol will change to “GMIL.” The Old
Common Stock will cease to be quoted.Guilford Mills and its domestic subsidiaries filed voluntary
petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on March 13, 2002. The
Company had exited several businesses over the previous year to focus on its strongest operations:
automotive, technical textiles and select apparel businesses. The bankruptcy reorganization allowed
Guilford Mills to reduce its debt to a level more appropriate for its new size.Copyright PR
Newswire 2002

Fire Damages TextileRubberandChemical FacilityAn overnight fire Sept. 12 at a facility belonging to
Textile RubberandChemical Co., Dalton, Ga., has temporarily closed down the companys operations at
that location. The cause of the fire has not been determined.While fire damage was confined to
Textile Rubbers commission coating operation, the building also sustained water and smoke damage in
areas housing a polyurethane research laboratory and offices.The company has moved the affected
operations and employees to other locations in Dalton. We are fortunate in that not one employee
has had to lose a day of work and that our customers can continue to be served with few
interruptions, said a company spokesperson. The company also expressed gratitude for the efforts
and help from area fire and police departments, the Red Cross and local businesses.Textile Rubber
plans to rebuild the damaged building as quickly as possible.
October 2002