Foamex Swings to Loss in 2007

Linwood, PA, April 7, 2008-- Foamex International Inc. reported a net loss for the fourth quarter of $35.6 million, or $1.51 per diluted share, compared to net income of $1.1 million, or $0.12 per diluted share, in the fourth quarter of 2006.

In addition, fourth-quarter net sales declined 11 percent to $263.9 million, compared with $296.8 million a year ago. The company said the decrease was primarily due to lower sales volumes and lower average selling prices in the Foam, Technical, and Carpet Cushion segments.

Gross margin decreased to 10.7% from 14.6% in the fourth quarter of 2006.

“This year we made significant progress restructuring and streamlining operations," said CEO Jack Johnson.

"We took actions to reduce excess capacity and improve plant efficiencies, while significantly lowering overheads. We improved cash flow through working capital reductions and asset sales, allowing us to reduce debt by approximately $95.0 million, since emerging from bankruptcy in February 2007, thus lowering debt levels to $534.1 million at year-end.”

Johnson said some achievements include the sale of its 70 percent equity interest in Foamex Asia; and consolidating the Eddystone, Pa. and Fort Wayne, Ind. manufacturing facilities.

Income from operations was $30.1 million in 2007, compared to $118.4 million in 2006.