Joan Fabrics Files For Chapter 11

Tyngsboro, Mass.-based Joan Fabrics
Corp. — a manufacturer of top-quality woven jacquard and velour fabrics for the contract,
hospitality and residential sectors in the United States, Canada and Mexico — and its Madison
Avenue Design subsidiary have filed voluntarily for Chapter 11 reorganization under the US
Bankruptcy Code.

During the proceedings, both businesses will continue to operate and serve their more than
700 customers, under the management of Carl Marks Advisory Group LLC, a New York City-based
business advisory and interim management firm. The companies’ 700 employees will not be affected.

The companies have entered into debtor-in-possession financing agreements with their
lenders, and have received debtor-in-possession financing of more than $10 million.

“This will allow us to meet the companies’ cash needs and give us opportunities to explore
strategic options to determine the company’s future,” said Richard Heller, COO. “We are already in
contact with a number of firms who have expressed interest in acquiring some or all of our
operating units. We believe that such a sale will provide the most advantageous result for our
employees, customers and creditors.”

April 17, 2007