Synthetic Industries, Inc. Reports Preliminary Results For Fiscal 1997 Second Quarter

Business Wire, April 10, 1997

CHICKAMAUGA, Ga--(BUSINESS WIRE)--April 10, 1997--Synthetic Industries, Inc. (Nasdaq:SIND) today announced preliminary results for the second quarter of fiscal 1997 reflecting continued strong improvement in sales and earnings.

For the fiscal 1997 second quarter ended March 31, 1997, the Company expects to report income of $1.9 million to $2.2 million, or $0.21 to $0.24 per share, before an extraordinary loss from the early retirement of debt. The extraordinary loss in the 1997 fiscal second quarter, which resulted from the repurchase of the Company's 12 3/4% Senior Subordinated Debentures and the pay down of bank loans, will amount to approximately $12 million, or approximately $1.33 per share. This compares with a net loss of $400,000, or $0.07 per share, for the comparable quarter of fiscal 1996. There were approximately 50% more weighted average shares outstanding in the most recent period versus the comparable period of fiscal 1996 due to the Company's initial public offering in November 1996.

Fiscal 1997 second quarter revenues are expected to reach $75 million compared with $65 million in fiscal 1996. EBITDA is expected to improve to approximately 18% of sales compared with 14.8% for the same period of fiscal 1996.

In discussing the second quarter, Leonard Chill, Chairman and Chief Executive Officer, noted continued strong demand for products and expanded capacity levels as well as an improved capital structure as reasons for the improved performance.

"We have laid a strong foundation to build upon as we enter what is traditionally the strongest selling period of the year. The capital expenditures and the acquisition we have made over the past twelve months have increased our production capacity allowing us to meet a greater portion of existing demand. In addition to our IPO in November, we substantially improved our financial structure by refinancing our debt in February, which will provide us with approximately $3 million in annual interest savings."

Synthetic Industries, Inc. is the second largest manufacturer of polypropylene fabrics and fibers in the world. The Company's diverse mix of products are sold world-wide for such end uses as carpet backing, geotextiles, erosion control, concrete reinforcement and furniture construction fabrics.

This news release contains forward-looking statements that are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the key factors that could cause actual results to differ materially from expectations, estimates of costs or projected or anticipated results are changes in the price of polypropylene, the continued availability of polypropylene, changes to cost estimates relating to specific projects, changes in technology, changes in economic and industry conditions and changes in regulatory requirements (including changes in environmental regulatory requirements). These and other risks and assumptions are described in the Company's reports that are available from the United States Securities and Exchange Commission.

CONTACT: Joseph Sinicropi

Chief Financial Officer

Synthetic Industries, Inc.

(706) 375-3121, Ext. 1400

or

June Filingeri,

John Blackwell

Press Contact: Stan Froelich

Morgen-Walke Associates

(212) 850-5600