CHICAGO and OMAHA, Neb., Nov. 1 /PRNewswire/ — Fruit of the Loom, Ltd.(OTC Bulletin Board: FTLAQ), Fruit of the Loom, Inc. (collectively the”Company”) and Berkshire Hathaway Inc. (brK.A, brK.B) announced that they andcertain of their respective subsidiaries have executed a definitive agreementtoday (the “Purchase Agreement”) for New FOL Inc., a Berkshire subsidiary, toacquire substantially all of the Company’s basic apparel business operationsat a purchase price of $835 million in cash, subject to adjustments. Thepurchase price is subject to significant reduction for certain liabilities aswell as adjustment upward or downward depending on working capital levels.New FOL will assume the ordinary course post-petition liabilities and certainspecified pre-petition liabilities of the business. Warren E. Buffett, Chairman of Berkshire Hathaway, said, “We’ve agreed tobuy Fruit of the Loom for two major reasons: the strength of the brand andthe managerial talent of John Holland.” John B. Holland, Chief Operating Officer of Fruit of the Loom, said,”Fruit is excited to become part of the Berkshire Hathaway family ofcompanies. Berkshire’s acquisition will complete the Company’s tremendousoperational turnaround and pave the way for emergence from Chapter 11.” The Company is currently operating as a debtor-in-possession pursuant toits Chapter 11 bankruptcy filing currently pending before the United StatesBankruptcy Court for the District of Delaware (the “Bankruptcy Court”). Ascontemplated by the Purchase Agreement, the Company will seek approval of theBankruptcy Court to conduct an auction whereby higher and better offers topurchase the business may be considered. The closing under the PurchaseAgreement will be effectuated pursuant to an amendment to, and confirmationof, the Company’s Joint Plan of Reorganization and is subject to completion ofthe auction, and other conditions set forth in the Purchase Agreement. Theproceeds from the sale will be distributed to creditors pursuant to theCompany’s plan of reorganization and under the oversight and procedures of theBankruptcy Court. The Company’s decision to enter into the Purchase Agreement is supportedby the Unofficial Secured Bank Steering Committee, the Steering Committee ofthe Informal Committee of Senior Secured Noteholders, and the OfficialCommittee of Unsecured Creditors of the Company. Fruit of the Loom and Berkshire presently expect the closing to occur inthe first quarter of 2002.SOURCE Fruit of the Loom, Ltd. and Berkshire Hathaway Inc.Copyright © 1996-2001 PR Newswire Association Inc.