GMI Completes Guilford Acquisition

GMI Merger Corp. (GMI)
, an affiliate of New York City-based Cerberus Capital Management LP, has
completed its cash tender offer to acquire the outstanding shares of Greensboro-based engineered
automotive, technical and apparel fabrics manufacturer Guilford Mills Inc. and has merged with the
company. GMI accepted for payment more than 5.1 million shares, or approximately 94 percent, of
Guilford’s common stock in the offer, and will convert all remaining publicly held shares into the
right to receive $19.00 net per share in cash. Guilford now operates as a wholly owned subsidiary
of GMI Holding Corp., also an affiliate of Cerberus.

May 2004