Foamex Third Quarter Earnings, Revenues Fall

Linwood, PA, November 12, 2007--Foamex International in the third quarter reported net income of $100,000, or $0.01 per diluted share, compared to net income of $7.4 million, or $0.77 per diluted share in the third quarter of 2006.

Net sales were $291 million, 7% below prior year sales of $314 million.

Carpet cushion net sales for the third quarter decreased 51% to $21.5 million from $44.1 million in 2006, reflecting soft market conditions and declines in volume and price.

Income from operations was $2.7 million compared to $7.2 million in the third quarter of 2006, as volume and price declines were only partially offset by lower raw material costs.

"Debt reduction continues to be a primary focus for Foamex,” said CEO Jack Johnson. “We continue to work aggressively to reduce costs and improve operating efficiencies. For example, we completed the consolidation of our Tupelo, Mississippi fabrication operations on schedule and on budget; are on track to complete the previously announced consolidation of our Eddystone, Pennsylvania and Fort Wayne facilities by the end of the first quarter of 2008; and we recently announced changes to our retirement plans.”, Indiana

Foamex said it reduced its debt by $46 million in the third quarter through a combination of cash generated from operations and the sale of Foamex Asia and its carpet cushion facilities.

The company said it expects to reduce its net debt to below its previous estimate of $560 million by the end of 2007. The company also expects operating income for the full year of approximately $65 million to $70 million, including restructuring costs of approximately $7.3 million and depreciation and amortization of approximately $20 million.