Malden Mills Set To Be Acquired By Chrysalis Affiliate

Pending approval by the US Bankruptcy
court District of Massachusetts, Western Division, Lawrence, Mass.-based Malden Mills Industries
Inc. is set to be acquired by Pipevine MMI LLC, a newly formed affiliate of Philadelphia-based
turnaround investment firm Chrysalis Capital Partners LP, Firetip MMI LLC and Firetip II MMI LLC
(collectively, Chrysalis) for $44 million.

In January 2007, Malden Mills filed for Chapter 11 protection under the US Bankruptcy Code
in order to facilitate a sale to Boston-based turnaround investment specialist Gordon Brothers
Group, for $44 million
(See “
Mills Board Approves Sale To Gordon Brothers
. The sale was subject to higher and better
offers, and Chrysalis subsequently entered a competing bid, which ultimately was approved as the
stalking horse bid.

An auction had been scheduled to take place today. However, no further qualified bids were
presented to the court, and the auction was cancelled, leaving Chrysalis as the successful bidder.
The sale is expected to be approved during a hearing scheduled for tomorrow.

February 20, 2007