Press Release Details

GREENSBORO, N.C., Dec. 28 /PRNewswire/ -- Unifi, Inc. (NYSE: UFI) announced that effective December 20, 2000, it refinanced its $400 million credit facility due to expire in April 2001, with a new unsecured three year $250 million revolving bank credit facility. Additionally, Unifi announced that it has entered into a $100 million trade receivables financing agreement that is secured by its domestic and certain foreign accounts receivable. Under the terms of the new credit facility, the Company had unused capacity of approximately $121.5 million as of December 20, 2000.

Loans under the new credit facility will initially bear interest at LIBOR plus .825% and advances under the receivables financing agreement will bear interest at the applicable commercial paper rate plus .30%. The financial and negative covenants in the new credit facility are materially comparable to the financial and negative covenants in the $400 million credit facility.

Unifi is one of the largest producers and processors of textured yarns in the world. Its primary business is the texturing, dyeing, twisting, covering and beaming of multi-filament polyester and nylon yarns. Unifi's textile yarns are found in home furnishings, apparel and industrial fabrics, home and automotive upholstery, hosiery and sewing thread.

This press release contains statements that are forward-looking statements within the meaning of applicable federal securities laws and are based upon the Company's current expectations and assumptions, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, among other things, global economic activity, the success of the Company's overall business strategy, the Company's relationships with its principal customers and suppliers, the success of the Company's expansion in other countries, the demand for textile products, the cost and availability of raw materials and labor, the Company's ability to finance its capital expansion and modernization programs, the level of the Company's indebtedness, ability to refinance, and the exposure to interest rate fluctuations, governmental legislation and regulatory changes, and the long-term implications of regional trade blocs and the effect of quota phase-out and lowering of tariffs under the WTO trade regime and of the changes in U.S. yarn trade as a result of recently enacted Caribbean Basin and Sub-Saharan Africa trade legislation.
SOURCE Unifi, Inc.
Web site: http: //www.unifi-inc.com
CONTACT: Billy Moore of Unifi, Inc., 336-316-5664, or e-mail, bcmoore@unifi-inc.com