AMERICAN FIBERS & YARNS ANNOUNCES EXCLUSIVE SUPPLY AGREEMENT WITH TELAS DAMAR, S.A. C.V.

Press Contact:
Tracey Campbell (800-925-0668) (twcampbell@afyarns.com)
John Avant (919-676-4115) (john.avant@avant.com)

Chapel Hill, NC (October 25, 2005) – American Fibers and Yarns Company has announced an exclusive agreement to be the sole supplier of polypropylene yarns to Mexico-based upholstery fabric manufacturer Telas Damar.

“As the textile industry becomes more unpredictable, we must be willing to change the way we do business in order to compete,” said Felipe Martin Alba, Telas Damar CEO.  “The decision to shutdown our extrusion equipment will allow us to focus our resources on better serving our customers.  This relationship with American Fibers & Yarns Company will enable us to structure our production in such a way that we can deliver fabric to our customers with in two-weeks of ordering. We recognize the competitive impact that our customers face, and believe that our delivery commitment will greatly help their position and solidify their continued success. Moving forward, we will also be able to partner more closely with AF&Y and rely on their yarn technologies to design and develop new products.”

Telas Damar, based in San Luis Potosi, Mexico, manufactures textured, chenille, jacquard and dobby fabrics for residential upholstery furniture. In 1998 Telas Damar vertically integrated and began extruding fibers for use in fabric production. Tietex International, Ltd. based in Spartanburg, S.C. maintains fifty percent ownership of Telas Damar.

“We will continue to see the industry consolidate and become more strategically focused,” said Jim Morelli, AF&Y Vice President. “As the global textile market evolves, companies must form partnerships with stable suppliers and customers in order to maintain a stronger competitive position.  This partnership with Telas Damar allows both of us to focus on what we do best and to better serve the furniture industry.”

About Telas Damar
Telas Damar was founded in 1980 as Terciopelos de San Luis” (San Luis Velvets).  In 1989, as the industry evolved and trends shifted, the company name was changed to Telas Damar.  The name change better reflected the new focus on the development of textured and chenille jacquards and dobby’s. In 2001, a partnership was established with South Carolina-based Tietex International, a vertically integrated global supplier of performance and decorative fabrics. Tietex has operations in the United States, Thailand, Europe and Australia.  This relationship created synergies in distribution and design capabilities and helped to establish Telas Damar as a leading upholstery producer serving Mexico and Central and South America.  Today, Telas Damar serves upholstery markets in North America, South America and Europe with a wide range of products.   For more information, please visit www.damar.com.mx.

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 two 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.