MALDEN MILLS TO RECEIVE $20 MILLION IN FUNDING.  Lawrence, MA. November 29, 2001

"This reorganization allows Malden Mills to emerge from the challenges we have faced since the catastrophic fire that nearly destroyed our company in late 1995," said President and CEO Aaron Feuerstein. "Today begins a new chapter in Malden Mills' 95 year history as a stronger, more highly focused and profitable company. Our internationally renowned brand name, our pioneering research and development arm, coupled with our strong customer base and our dedicated workforce, will keep Malden Mills at the forefront of the industry for many years to come."

The Mill was devastated by an industrial fire on December 11, 1995. Feuerstein received national recognition for immediately rebuilding in Lawrence, MA while continuing to pay his workers during the process. The new Polartec® building was the first mill built in New England in more than 100 years.

The filing was necessitated by the cost of servicing bank debt. A number of factors contributed, including a sluggish retail market, the high costs associated with rebuilding and the closure of the company's upholstery division after a significant market share loss as a result of the fire. Malden Mills, a privately-held company, worked with its lenders and strategic advisors and determined that a Chapter 11 filing was the best way to reorganize the company for continuing operations and for building on its unique position as a recognized brand innovator.

Malden Mills' patented manufacturing processes create high-tech, branded Polartec® fabrics for all outdoor activities -- from rock climbing to kayaking to U.S. military maneuvers in the mountains of Afghanistan. The company has received tremendous support from their customers worldwide. 'Made in the United States of America' and based in Lawrence, Massachusetts, the Mill is the sole source for Polartec® fabrics used for cold weather gear for the U.S. Army, Marine Corps, and Special Operations Command.

"I commend Malden Mills and the creditors for reaching this agreement. I'm confident that the company will overcome its current problems and continue to make a vital contribution to the local economy and the nation's security in the future," said Senator Edward Kennedy. "This agreement is a giant step toward achieving that important goal."

"This is great news for anybody who cares about responsible corporate citizenship in America," said Senator John Kerry. "Aaron Feuerstein put the survival of his company on the line when he decided to take care of his workers and rebuild in Lawrence and Methuen. I appreciate the willingness of the creditors who helped structure this agreement and am hopeful that this announcement represents the beginning of a new chapter of growth for the workers at Malden Mills."

"I am pleased that Malden Mills will continue to supply not only our Armed Forces with Polartec but the greater Lawrence community with good jobs. Malden Mills is providing our military, particularly those soldiers and Marines who are stationed in and around Afghanistan, with the best possible cold weather gear. I am confident today's announcement will ensure that our men and women in uniform will continue to receive this important equipment. Moreover, it is clear that Malden Mills will continue to play an important role in the economy of Lawrence, the Merrimack Valley, and Massachusetts," said Congressman Marty Meehan, a senior member of the House Armed Services Committee.

"This is wonderful news for Malden Mills and wonderful news for their workers," said Gov. Jane Swift. "In this time of economic uncertainty it is reassuring when lenders and companies can reach agreements that protect jobs and allow companies to operate. I'm sure that this is the beginning of a successful new phase for Aaron Feuerstein and his world-renowned Polartec fabrics."

Malden is fully operational and conducting business as usual. Görlitz Fleece GmbH, a wholly owned subsidiary of Malden Mills Industries, Inc., based in Görlitz, Germany, will continue operations unaffected by the U.S. filing. Customers worldwide will continue to receive product, without interruption, from both facilities. The U.S. Customer Service Center in Lawrence, MA and the European Customer Service Center in Maastricht, The Netherlands, will also continue to operate as usual and serve customers' needs.

"Malden Mills is in an enviable position in the marketplace," said Feuerstein, "and with this infusion of capital, we will continue to grow the business and retain our preeminent status in the industry. Our customers, employees, and vendors will all be the beneficiaries of this reorganization plan which allows us to focus on our very positive outlook for the future."

Founded in 1906 and based in Lawrence, Massachusetts, Malden Mills Industries, Inc. is the worldwide producer of high-quality branded fabric for apparel, footwear and home furnishings.

Malden Mills and Polartec are trademarks registered in the United States and in other jurisdictions for fabrics available only from Malden Mills Industries, Inc. Malden Mills Industries, Inc., 46 Stafford St., Lawrence, Mass., 01841

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