FOAMEX TO INTEGRATE EDDYSTONE, PA

TECHNICAL PRODUCTS OPERATION INTO FORT WAYNE, IN FACILITY

 

Foamex Positions Technical Products Business for Growth

 

LINWOOD, PA, July 24, 2007 – Foamex International Inc. (OTC: FMXL) today announced that it is expanding the capacity of its Fort Wayne, IN facility, which will allow its Technical Products business to integrate its Eddystone, PA plant operations into the Fort Wayne facility. Foamex expects the consolidation to be completed in the first quarter of 2008, at which time the Eddystone facility will be closed and the riverfront real estate will be marketed for sale. The consolidation is another step in Foamex’s continuing effort to increase operating efficiencies and grow its market leading Technical Products business.

 

Jack Johnson, Chief Executive Officer of Foamex, said, “Expanding in the technical and specialty foam sector of the industry is a top priority. The integration of the Eddystone and Fort Wayne operations is one in a series of steps to globally position our plant assets and expertise to service an increasingly dynamic marketplace. Our Fort Wayne, IN facility is a best-in-class operation and we are making significant incremental investments in people, processes and equipment to facilitate this integration. Consolidating these operations will also allow us to further standardize processes, lower costs, and improve customer service, thereby enabling us to be more competitive.”

 

The Company expects to realize annualized cost savings in excess of $5 million related to the consolidation. Correspondingly, the Company will record related charges totaling approximately $8.1 million through the first quarter of 2008. Approximately $2.1 million of the estimated charges will be non-cash, principally related to accelerating depreciation and amortization.

 

Transition plans are in place to provide uninterrupted service to customers during the consolidation. Consistent with Company policy, impacted employees will receive severance packages and transition services.

 

About Foamex International Inc.

Foamex, headquartered in Linwood, PA, is a leading producer of polyurethane foam-based solutions and specialty comfort products. The Company services the bedding, furniture, carpet cushion and automotive markets and also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries. For more information visit the Foamex web site at http://www.foamex.com.

 

Forward-looking statement

This press release contains, and oral statements made from time to time by representatives of the Company may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, future operating results, operating efficiencies, cost savings, future market prices and margins, future energy costs, future government and legislative action, future cost savings, future benefit costs, the Company's liquidity and ability to finance its operations, and other statements that are not historical facts that involve certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Additional information that could cause actual results to vary materially from the results anticipated may be found in the Company's most recent Form 10-K and other reports filed with the Securities and Exchange Commission. Readers should be aware that any forward-looking statement made in this press release or elsewhere by the Company speaks only as of the date on which it is made, and the Company disclaims any obligation or intent to update any of the factors listed above or forward-looking statements.

 

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