UNIFI Adds Air Jet Texturing Operations from Glen Raven

UNIFI Adds Air Jet Texturing Operations from Glen Raven

News Release

Agreement Provides Unifi Access to Broader Markets and End-uses

GREENSBORO, NC — May 22, 2001 — Unifi, Inc. (NYSE: UFI) today announced that it has reached an agreement to assume operating control of Glen Raven's air jet texturing operations based in Altamahaw, N.C. The agreement, effective immediately, will expand Unifi's air jet texturing volume from 2 million to 15 million pounds per year, making Unifi the US market leader in the production of air jet textured yarn.

“Adding air jet texturing capacity is an important component of our North American growth plan,” said Alf Webster, President of Unifi's North American operations. “It's consistent with our desire to leverage core manufacturing expertise, it enables us to diversify our fiber range and end-use markets, and it provides immediate access to a broader mix of high-value products - we're very excited.”

Under terms of the agreement, structured as an operating lease, Unifi will assume the operations without significant capital investment, and Glen Raven employees at the Altamahaw plant become Unifi employees.

The added capacity will allow Unifi to produce a more complete range of regular and solution-dyed air jet textured yarns to capitalize on growth opportunities in flat woven automotive, contract and industrial upholstery. Unifi will also target the high-end branded knit and woven apparel markets, including active, outer, aerobic, and swim wear. In addition, the deal provides Unifi with an entry into the growing polypropylene segment, which will enhance the company's flexibility in servicing the contract and industrial upholstery markets.

As a result of the transaction Glen Raven will exit the manufacturing of air jet textured polyester and nylon yarns, but it will continue to market and sell a broad range of spun and package-dyed yarns, including filament. “Unifi's premium position as the world's leading yarn texturer best enhances the opportunity for this business to reach its full potential,” said Bill Bardin, President of Glen Raven Yarn Company, LLC. “We will focus our investments on the development and production of differentiated yarns and fabrics and the building of successful brands, such as our Sunbrella®, Dickson®, Sun Sharp® and Microsuede™ fabrics.”

“Customers will experience a seamless transition as we incorporate Glen Raven's air jet texturing business into Unifi's operations,” said Webster. “Both Unifi and Glen Raven have strong customer relationships. This transaction will create competitive advantages for them through a greater focus on innovation, quality and service.”

Unifi, Inc. is the largest producer and processor of textured yarns in the world. The company's primary business is the texturing, dyeing, twisting, covering and beaming of multi-filament polyester and nylon yarns. Unifi's textured yarns are found in home furnishings, apparel and industrial fabrics, automotive upholstery, hosiery, and sewing thread.

Glen Raven, Inc. is a highly diversified textile marketing, sales, and manufacturing company serving the awning, marine, casual furniture, industrial fabrics and automotive fabric markets through various subsidiaries with manufacturing facilities in North America and Europe. The company is headquartered in Glen Raven, N.C.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain statements included herein are “forward-looking statements” within the meaning of the federal securities laws. Management cautions that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause the actual results of operations or financial condition of the Company to differ include, but are not necessarily limited to, sourcing and pricing of raw materials, pressures on sales prices due to competition and economic condition, reliance on and financial viability of significant customers, technological advancements, employee relations, changes in construction spending and capital expenditures (including those related to unforeseen acquisition opportunities), continued availability of financial resources through financing arrangements and operations, negotiation of new or modifications of existing contracts for asset management and for property and equipment construction and acquisition, regulations governing tax laws, other governmental and authoritative bodies' policies and legislation, the continuation and the magnitude of the Company's common stock repurchase program and proceeds received from the sale of assets held for disposal. In addition to these representative factors, forward-looking statements could be impacted by general domestic and international economic and industry conditions in the markets where the Company competes, such as changes in currency exchange rates, interest and inflation rates, recession and other economic and political factors over which the Company has no control. Investors are also directed to consider the risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.

For more information, contact:

Alf Webster , President

Unifi North America

(336) 316-5472

awebster@unifi-inc.com

Bill Bardin , President

Glen Raven Yarn Company, LLC

(336) 227-6211

bbardin@glenraven.com