Foamex in Negotiations with Lenders

Furniture World Magazine

Foamex International Inc., a leading producer of polyurethane foam-based solutions and specialty comfort products to the furniutre industry announced several significant developments in its efforts to restructure its balance sheet and enhance long term value while continuing normal business operations. Foamex is engaged in discussions with certain lenders holding more than a majority of its First Lien Term Loans regarding restructuring options including, without limitation, a possible amendment to the Company’s First Lien Term Loan facility. In addition, in order to continue the process for a restructuring of its balance sheet and in consideration of its best long-term interest, Foamex has not made the $7.3 million interest payment on its First Lien and Second Lien Loans that was due by January 21, 2009, upon expiration of the applicable grace period. To facilitate these discussions with its lenders, Foamex anticipates entering into a forbearance agreement with each of its Revolving Credit facility lenders and its First Lien lenders shortly. “Today’s actions are consistent with our number one priority over the past two years to deleverage,” said Jack Johnson, President and Chief Executive Officer. “We will continue to negotiate with our First Lien lenders to strengthen our business by restructuring our debt. We have reduced debt by approximately $240 million in the last two years.” “Importantly, these steps and our ongoing negotiations should have no effect on Foamex’s day-to-day operations. We continue to have enough cash to support our daily operations and Bank of America, the agent for our Revolving Credit facility, continues to work constructively with us during these discussions. We remain committed to continuing to provide our loyal customers with the high level of service and products to which they are accustomed and to maintaining strong supplier relationships,” Johnson continued. About Foamex International Inc. Foamex, headquartered in Media, PA, is a leading producer of polyurethane foam-based solutions and specialty comfort products. The Company services the bedding, furniture, carpet cushion and automotive markets and also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries. For more information visit the Foamex web site at http://www.foamex.com.