Globe Manufacturing, a worldwide maker of Glospan spandex, is to evaluate strategic options that will enable it to reduce its long-term debt load.

The company said that it has sufficient liquidity to meet normal obligations of trade creditors and employees as a result of cash flow from its operations.

Globe said that it has retained the financial advisory firm of Rothschild Inc to assist management in analyzing and developing strategic alternatives related to restructuring its long-term debt. The company said that it intends to undertake a financial restructuring that leaves trade creditors unimpaired.

"Like most companies in the textile industry, we have faced a very challenging environment over the last two years. Despite those challenges, Globe Manufacturing remains a strong operating company with top-quality products. We have been able to make capital expenditures that keep us at the forefront of technology. Nevertheless, we clearly need to reduce our long-term debt burden so that we can continue to be a first rate competitor in this industry," said Richard Heitmiller, vice chairman and interim chief executive officer of Globe Manufacturing.

Established in 1945, Globe Manufacturing Corp produces Glospan and Cleerspan spandex performance fibers and is a premier worldwide spandex fiber supplier. Available in a range of deniers from 20 through 5040 and various packaging put-ups, Glospan is distributed to over 40 countries through five major distribution channels. Globe is registered under the internationally recognized ISO 9000 standard as an ISO 9001 manufacturer.

This news release contains certain forward-looking statements concerning Globe's positioning for the future. As required by the Private Securities Litigation Reform Act of 1995, the company advises that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those stated or inferred. These could include the failure of Globe to improve financial results or to maintain liquidity; the ability of the company to obtain liquidity; the ability of the company to close on a recapitalization; the inability of the company to successfully amend debt covenants for fiscal 2000; sudden marketing changes in product pricing or the cost of raw materials; failure of the company to successfully implement its value-added marketing strategy or other uncertainties listed from time to time in the company's filings with the SEC.