PGI Accesses DIP Facility

PGI Accesses DIP FacilityPolymer Group Inc. (PGI), North Charleston, S.C., and 20 of its U.S.
subsidiaries have filed for pre-negotiated reorganization under Chapter 11 of the U.S. Bankruptcy
Code.PGIs international operations and joint ventures are excluded from the filing.With the backing
of its bank group and the holder of more than two-thirds of its outstanding bonds, PGI hopes to
eliminate more than $550 million of debt. The company expects to complete reorganization by the
third quarter 2002.We expect that the restructuring process will generally have no impact on the
companys ability to fulfill its obligations to its customers and employees, said Jerry Zucker,
chairman, president and CEO. We fully expect that our vendors and customers will support the steps
taken today as part of our program to adjust our capital structure and strengthen the companys
position for the future.As part of the filing, PGI has received approval from the U.S. Bankruptcy
Court to access a $125 million debtor-in-possession (DIP) facility, arranged by JP Morgan Chase,
which will be used to fund operating expenses and to meet employee and supplier obligations.The
company already has received court approval to continue to pay employee wages and benefits, to pay
suppliers for delivery of goods and services, and to continue ordinary customer programs and
July 2002