AF&Y EXPANDS GLOBAL DISTRIBUTION WITH EUROPEAN AGREEMENT.

Press Contact:
John Avant 919-676-4115 (john.avant@avant.com)

Chapel Hill, NC (Feb. 9, 2004) - American Fibers and Yarns Company (AF&Y) has reached an agreement with Polisilk S.A., Manresa, Spain, that will expand AF&Y's distribution network in Europe and allow Polisilk yarns to be sold by AF&Y in U.S. markets.

Polisilk has more than 180 years textile experience and, since introducing its first polypropylene yarn in 1972, has become one of the leading synthetic filament extruders in Europe. "Our product lines complement each other nicely," said Jim Morelli, AF&Y executive VP. "Polisilk offers an array of twisted yarns and high tenacity polypropylenes in heavy deniers, primarily to industrial markets. We will be providing Polisilk with our vast variety of low to high denier flat and textured yarns, allowing them greater penetration into new markets such as home furnishings, apparel and automotive. Additionally, we're very confident the Polisilk yarns will give us significant advantages as we expand our offerings in the industrial marketplace."

Polisilk has hired a representative for the exclusive purpose of selling AF&Y yarns in Europe. AF&Y will continue its successful relationship with its current European agent, Rudi Peters, of NicLau, Inc., who has been servicing specific target accounts under contract with AF&Y for two years.

"Polisilk is a family-owned business, with a proud heritage we trace back almost two centuries," said Marc Ponsa, principal. "It was important for us to find marketing partner that shares our commitment to excellence and to technology. We are confident we found the best possible U.S.-based partner, in American Fibers and Yarns."

About American Fibers and Yarns Company
American Fibers and Yarns Company (AF&Y) is the world's leading supplier of solution dyed filament yarns. With thousands of yarns in its product portfolio and the ability to engineer yarns to customer specifications, AF&Y is a dominant supplier to the residential and contract furnishings marketplace, and has a growing presence in the hospitality, apparel, automotive and industrial markets. Headquartered in Chapel Hill, NC, AF&Y maintains a Technology Center that specializes in engineering filament yarn with innovative combinations not available from other suppliers. The company also operates three U.S. production facilities totaling a million square feet of manufacturing space. For more information on AF&Y and its products, please visit www.afyarns.com or call 800-925-0668.

About Polisilk
Begun in 1820 by Francisco Ponsa and his wife, Teresa Casajuana, the company introduced its first polypropylene yarn in 1972. The name was changed to Polisilk in 1978, as the company dedicated itself exclusively to the development and production of synthetic yarns. Based in northern Spain with excellent access to European markets, Polisilk has broad experience in the manufacture of most polypropylene yarns and has grown to become one of the leading synthetic filament extruders in Europe. Polisilk is still owned and operated by descendants of the founders.