NEWS
FOR IMMEDIATE RELEASE
CONTACT: Kurt P. Ross
Guy B. Lawrence
ROSS & LAWRENCE
tel: (212) 308-3333
E-mail: [email protected]
PARAGON ANNOUNCES PLAN TO EXIT FEMININE CARE BUSINESS
MOVE CONSISTENT WITH FOCUS ON DIAPER AND TRAINING PANT GROWTH
Norcross, GA, August 16, 2000 - Paragon Trade Brands, Inc. (OTC Bulletin Board:
PGTR) today announced it plans to exit the feminine care business. The Company
anticipates completing this process by year-end and is in discussions with
several interested purchasers. The orderly transition from this business will
enable the Company to focus its resources on the continued growth and expansion
of its core diaper and pant businesses.
Commenting on the decision Chairman and Chief Executive Officer Michael Riordan
noted, "Since emerging from Chapter 11 earlier this year Paragon's primary focus
has been on growing our business and returning it to profitability as well as
servicing our customers' needs. Thanks largely to the outstanding performance of
our diaper and pant product lines we have recorded significant increases in
revenues and cashflow and have achieved a major turn around.
"A recent in depth review of our business has resulted in our determination that
our feminine care business does not fit into our future core strategies. The
decision to exit this business is an extremely difficult one, particularly in
light of the efforts of our employees at our Gaffney, South Carolina facility as
well as the tremendous support of customers. However, I am confident that the
best way for us to excel and to grow shareholder value is by narrowing our focus
and becoming the best possible supplier of store brand diapers and pants to our
retail customers. Focusing our energies, technology and capital resources
exclusively on our core businesses will help us achieve that status."
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Paragon Announces Plan to Exit Feminine Care Business
Page 2
Paragon Trade Brands is the leading manufacturer of store brand infant
disposable diapers and training pants in North America. Paragon manufactures a
line of premium and economy diapers and training pants, which are distributed
throughout North America through grocery and food stores, mass merchandisers,
warehouse clubs and drug stores that market the products under their own store
brand names. Through its international joint ventures, Paragon is also a leading
supplier of infant disposable diapers and other absorbent personal care products
in Mexico, Argentina, Brazil and China.
Statements made in this press release, other than those concerning historical
information, should be considered forward-looking statements. Such statements
are subject to certain risks and uncertainties that could cause actual results
to differ materially from those expressed in the Company's forward-looking
statements. Factors which could affect the Company's financial results,
including, but not limited to: increased raw material prices and product costs;
new product and packaging introductions by competitors; increased price and
promotion pressure from competitors; new competitors in the market; increased
financial leverage; and patent litigation, are described in the Company's
periodic filings with the Securities and Exchange Commission, including the
Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on
the forward-looking statements contained herein, which speak only as of the date
hereof, and which are made by management pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
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ALAN J. CYRON
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
PARAGON TRADE BRANDS, INC.
180 TECHNOLOGY PARKWAY
NORCROSS, GA 30092
678/969-5200
