Advanced Glassfiber Yarns LLC Announces Continued Restructuring Discussions

Business Wire, August 14, 2002

Business Editors

AIKEN, S.C.--(BUSINESS WIRE)--Aug. 14, 2002

Advanced Glassfiber Yarns LLC (the "Company") announced today that it has entered into an additional amendment and forbearance agreement with its senior secured lenders under an initial $315 million revolving credit and term loan facility.

Previously, the Company had announced that it was in discussions with its lenders regarding a consensual restructuring of approximately $180 million of indebtedness outstanding under such facility, and had obtained an initial agreement from its lenders to forbear from exercising rights and remedies under such facility until August 13, 2002. Under the latest amendment and forbearance agreement, the Company's senior secured lenders agreed, among other things, to extend the forbearance period until September 27, 2002, while the parties continued restructuring discussions.

Separately, the Company announced that it will not be making the approximately $7.4 million interest payment on its $150 million of 9 7/8% senior subordinated notes that is due upon the expiration of a 30-day grace period provided under the indenture governing the notes. Previously, the Company had announced that it intended to use this grace period to enter into consensual restructuring discussions with the noteholders. The Company stated that, although the grace period has expired, it has commenced discussions with a steering committee of the holders of the notes, and intends to continue its efforts to achieve a consensual restructuring of such indebtedness.

The Company noted, however, that there can be no assurance that it will be successful in achieving a consensual restructuring of its bank or bond indebtedness, in which event, the Company will explore all viable alternatives.

Advanced Glassfiber Yarns, headquartered in Aiken, SC, is one of the largest global suppliers of glass yarns, which are a critical material used in a variety of electronic, industrial construction and specialty applications.

All statements in this press release other than historical facts are forward-looking statements which involve risks and uncertainties and which are subject to change at any time. Such statements are based on management's expectation at the time they are made. In addition to the assumptions and other factors referred to in connection with these statements, factors set forth in the Company's latest 10-K or 10-Q filed with the Securities and Exchange Commission, among others, could cause actual results to differ materially from those contemplated.