FOAMEX INTERNATIONAL INC. REPORTS THIRD QUARTER 2001 RESULTS _________________________________________________ Acquisition, New Products Spur Top Line Growth Debt Reduction of $18.6 Million Contributes to Earnings Surge to $0.29 Per Share vs. $0.15 in Prior-year Quarter EBDAIT is $34.5 Million LINWOOD, PENNSYLVANIA, November 9, 2001 - Foamex International Inc. (NASDAQ: FMXI), the leading manufacturer of flexible polyurethane and advanced polymer foam products in North America, today announced financial results for its third quarter, which ended September 30, 2001. Net sales for the quarter were $326.4 million, an increase of 5.4% from $309.7 million reported in the prior-year quarter. The increase was primarily the result of the acquisition in late July of certain assets of General Foam Corporation (GFC), which contributed to growth in the company's Automotive Products and Technical Products businesses. New product sales were also strong in the quarter. Gross profit for the quarter was $46.1 million, an increase of 3.0% over $44.7 million for the third quarter of 2000. As a percent of sales, gross profit for the quarter was 14.1%, compared with 14.4% in the third quarter of last year, reflecting continuing price competition in the company's commodity businesses. SG&A expenses for the quarter increased to $20.4 million, from $17.4 million in the prior-year quarter. The increase was primarily the result of expenses associated with the company's change of auditors, the GFC acquisition, and other professional fees associated with our global growth programs. The company recorded additional restructuring expenses of $0.3 million in the third quarter of 2001, compared with a charge of $2.8 million in the third quarter of 2000. Operating income was $25.5 million, an increase of 3.9% over the $24.5 million reported in the third quarter of last year. Excluding restructuring charges in both periods, operating income decreased 5.9% from the prior-year quarter. Interest and debt issuance expense for the quarter was $15.4 million, a 19.9% decrease from $19.3 million in the third quarter of last year, due to a combination of reduced debt levels and lower interest rates. Effective interest rate reductions are expected to further lower interest expense in the fourth quarter and into 2002. Provision for income taxes was $1.4 million, compared with $1.1 million in the third quarter of 2000. Net income grew to $7.4 million or $0.29 per diluted share, compared with $3.8 million or $0.15 per diluted share for the third quarter of 2000. EBDAIT for the quarter was $34.5 million, a decrease of 6.8% from $37.1 million in the third quarter of last year. John Televantos, President and Chief Executive Officer of Foamex, said, "The General Foam acquisition is already contributing in a positive way to the growth and profitability of our company. In addition, new product initiatives continue to run ahead of our aggressive plan to double sales of new products, to $60 million, in 2001. These results are indicative of the value to the market of our new product lines, particularly in the home furnishings sector. As mortgage rates continue to move lower, the 2002 housing sector may provide a sound growth opportunity for the company. "We have now posted eleven consecutive quarters of stable EBDAIT levels," Televantos continued. Consistent with our ongoing commitment to shareholders, we reduced debt by an additional $18.6 million during the quarter, and more than $44 million year to date. Total debt at September 30 was $668 million. As a result, our debt leverage at September 30 was below our covenant target level, which will further reduce effective interest rates going forward. "Our investment in proprietary technology and our focus on new product development are reaping benefits for Foamex," Televantos noted. "The two new Variable Pressure Foaming (VPFSM) lines installed this year expand our industry technology leadership and provide the base for innovative new products for our customers. Our proprietary VPF-based furniture and bedding brands, Reflex®, Quiltflex™ and visco-elastic foams, have gained rapid acceptance in the industry. We expect increasing contributions from these investments in 2002. "In addition," he continued, "we are in the process of launching a new anti-microbial carpet cushion, called Performance™, which we expect to contribute significantly to new product sales and overall Carpet Cushion performance in the months ahead. We also have several military-related products in the development stage that could make a meaningful contribution to our growth and profitability in the years ahead as well. Commenting on the company's near-term outlook, Televantos said, "The economy continues to be challenging, and our outlook for the fourth quarter and the early part of the new year remains guarded." Year-to-date performance For the nine-months ended September 30, 2001, net sales were $942.6 million, a 2.0% decrease from sales of $961.5 million in the prior-year period. Gross profit was $137.7 million, or 14.6% of sales, compared with $135.4 million, or 14.1% of sales, in the first nine months of 2000. SG&A expenses for the period were $58.3 million, an increase of 7.1% over $54.5 million in the same period last year. Operating income was $79.2 million, an increase of 5.7% over the $74.9 million reported for the first nine months of 2000. Excluding restructuring charges in both periods, operating income decreased 2.0% over the nine-month period. Interest and debt issuance expense for the period declined to $49.4 million from $56.7 million for the same period last year. Provision for income taxes was $4.6 million, compared with $3.3 million for the first nine months of 2000. Net income for the period was $24.0 million, compared with $13.6 million in the prior-year period. Diluted earnings per share was $0.95 compared with $0.54 in the prior-year period. EBDAIT for the first nine months of 2001 was $105.3 million, 3.1% below the prior-year level of $108.7 million. Foamex Chairman Marshall S. Cogan noted, "Quarter after quarter, we continue to strengthen our company - financially, operationally and in our executive expertise. Since December 1998, our total debt reduction has exceeded $130 million. We are investing in internal and external growth through investment in technology and prudent acquisitions. We enhanced our management team with the addition of Tom Chorman, our new Chief Financial Officer, who brings with him strong financial and operational experience. We continue to add expertise to our Board of Directors, most recently with the addition of former Senator John Culver of Iowa, who is now leading our governmental and military efforts. These actions and accomplishments are critical elements of our strategy to create value for both customers and investors. " Foamex, headquartered in Linwood, Pennsylvania, is the world's leading producer of comfort cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures high-performance polymers for diverse applications in the industrial, military, electronics and computer industries as well as filtration and acoustical applications for the home. Revenues for 2000 were $1.3 billion. For more information visit the Foamex web site at http://www.foamex.com.     This release contains certain 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. The Company believes the assumptions underlying the forward-looking statements, including those relating to debt reduction, cost reduction, cash generation, interest rates, foreign taxes, new products, and the overall economy are reasonable. However, any of the assumptions could be inaccurate, and therefore there can be no assurance that the forward-looking statements contained in this release will prove to be accurate. 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. Furthermore, the Company disclaims any obligation or intent to update any such factors or forward-looking statements to disclaim future events and developments. Financial Tables Martha A. Buckley