Citing continuing competition from textile imports, a continued softness in the economy, and significant financial losses, CMI Industries Inc announced today that it will no longer produce woven greige fabrics made of spun yarn and will close its remaining greige fabrics operations in Clinton, SC. Approximately 600 employees will be affected by the closing which is estimated to occur gradually over the next few months. The complex is expected to shut completely around July 8, 2001.

The decision will not impact CMI's woven filament fabrics plant in Clarkesville, GA, or any of its elastic fabrics operations.

"We have tried every means we have been able to think of in an effort to save this business. Every alternative has been explored," stated Terry Murphy, corporate director of human resources.

"Even with the drastic steps previously announced in the closing of the Geneva (Alabama) Plant and, more recently, the Bailey Plant in Clinton, we are still unable to support the remaining operations with the current level of sales at anywhere close to a profitable level. Despite the relentless efforts of our sales associates to seek additional sales and new markets, we do not foresee any dramatic changes in the greige fabrics market that would indicate a favorable change in the recent pattern of continued decline in demand and extreme pricing pressures from imports."

CMI Industries' chief executive officer Joe Gorga said: "The decision to close this operation is the most difficult decision our company has ever faced. Clinton is where our company began and the greige fabrics business had until recent years been a significant contributor to our company's success. We are most appreciative of our associates in Clinton and of the support we have received from the Clinton community, especially in these most recent difficult months.

"We deeply regret that the financial considerations outweigh what we all would prefer to do, which is to continue the Clinton operations as we have for so many years. Unfortunately, no business can continue if it is unable to compete profitably and this business has not been able to do so since the financial crisis in Asia in 1998."

CMI officials noted that the company would begin immediately to dispose of equipment and work with developers to market its plants, offices, and other facilities to other prospective employers.

An involuntary Chapter 11 petition was filed against the Company under the bankruptcy code on May 3, 2001 by certain holders of 9 1/2% Senior Subordinated Notes. The company announced yesterday that it has asked the court to dismiss the involuntary bankruptcy petition.