Quaker Fabrics Facing Liquidation

Fall River, Mass.-based Quaker Fabrics Corp., at one time one of the largest producers of jacquard
upholstery fabric worldwide, has announced it will likely liquidate and sell its assets. The
company reports it has not met requirements for committed borrowings under its existing lending
facilities, and therefore cash advances to Quaker Fabrics by its revolving lenders will take place
on a discretionary basis.

The company is seeking out other forms of liquidity, which include debt, equity or a
combination of debt and equity financing, though it has expressed uncertainty as to whether it will
be able to obtain enough liquidity to continue operations after its annual shutdown period this

July 3, 2007