Advanced Glassfiber Yarns LLC Announces Restructuring Discussions

Business Wire, June 28, 2002

Business Editors

Advanced Glassfiber Yarns LLC (the "Company") announced today that it is in discussions with its senior secured lenders regarding a consensual restructuring of the approximately $180 million of indebtedness currently outstanding under a revolving credit and term loan facility.

In connection with such discussions, the Company and its lenders entered into an amendment and forbearance agreement under which the lenders, among other things, agreed to forbear from exercising their rights and remedies under such facility until August 13, 2002.

The Company also announced that it will not be making the $7.4 million July 15th interest payment on its $150 million of 9 7/8% senior subordinated notes due 2009, and stated that it intends to use the 30-day grace period provided under the governing indenture to enter into consensual restructuring discussions with the noteholders.

The Company noted that there can be no assurance that it will be successful in achieving a consensual restructuring of its indebtedness.

The Company has retained Credit Suisse First Boston as its financial advisor to explore strategic alternatives and is actively pursuing such alternatives, as well as implementing various cost savings measures. The Company noted that it has paid, and expects to continue to pay, its day-to-day trade obligations.

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.