Release: Immediately
Contact (press): Dick Windham (336) 379-2303
(analysts): Lynn Lane (336) 379-2745

BURLINGTON AND UNIFI 
FORM JOINT VENTURE 
FOR TEXTURED YARNS

Burlington Industries, Inc. (NYSE:BUR) and Unifi, Inc. (NYSE:UFI) announced today that they have agreed to form a joint venture to manufacture and market textured polyester yarns. Unifi will have majority ownership and will manage the business, while Burlington will own a minority interest. Burlington's existing textured yarn business and its Mayodan, NC plant (now part of the Burlington Madison Yarn division) will become part of the joint venture, along with Unifi's textured polyester facilities at Yadkinville, NC.

The Burlington Madison Yarn division presently sells both textured yarns and spun synthetic yarns to several Burlington divisions as well as 250 nonaffiliated companies in the apparel, automotive, medical and home funishings markets. Under the joint venture agreement, Burlington Madison Yarn will produce spun synthetic yarns only, utilizing its facilities in Ranlo and St. Pauls, NC.

George Henderson, Chairman and CEO of Burlington Industries, said, "The markets for textured polyester yarns are becoming increasingly global in nature. By forming a joint venture with Unifi, we will be strengthening the ability of both companies to compete effectively on a worldwide basis. Together, we will be able to offer our customers the best products and services at competitive prices. Unifi has invested aggressively in cutting-edge technology. We are delighted to be their partner."

Henderson said the Burlington Madison Yarn division will now focus exclusively on synthetic spun yarns. "Our spun yarn customers can continue to look to Burlington Madison Yarn for the highest quality and service in synthetic spun yarns," he said.

Burlington Industries is one of the world's largest and most diversified manufacturers of textile products for apparel and interior furnishings.

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