Foamex Changes Funding of Retirement Plans

Linwood, PA, December 11, 2007—Foamex International Inc said it will freeze future benefit accruals under its defined benefit pension plan and increase its matching contributions to its 401(k) plan at the end of the year.

The company will also adopt the Internal Revenue Service safe-harbor formula by matching 100% of the first 3% of contributions by its employees, and 50% of the next 2% of employee contributions.

“These changes allow us to continue to provide a competitive compensation package, which will be effective in recruiting and retaining employees, and give us more predictable retirement plan costs,” said CEO Jack Johnson.

Company expects to reduce retirement program expense by between approximately $8.1 million and $13.3 million over the next four years.