PGI To Consolidate European Operations

Polymer Group Inc. (PGI), Charlotte,
announced plans to phase out operations at its nonwovens plant in Neunkirchen, Germany, by the end
of 2007 and move portions of that business to its plant in Cuijk, the Netherlands, in order to
reduce costs and improve the company’s overall profitability. Following the consolidation, PGI’s
European operations will comprise the Cuijk plant and a facility in Bailleul, France.

“PGI is focused on ensuring we have the right cost structure to effectively compete in each
of our markets,” said Veronica M. “Ronee” Hagen, CEO. “Our operation in Germany is not of
sufficient size to support a stand-alone site, but the business will remain viable when combined
with our existing operation in the Netherlands. While difficult, these actions are necessary to
ensure our long-term competitiveness and ability to position our company for further growth and
investment in the region.”

June 12, 2007