Foamex to Integrate Eddystone Operation into Fort

Linwood, PA, July 25, 2007--Foamex said it is expanding the capacity of its Fort Wayne, Indiana facility, which will allow its technical products business to integrate its Eddystone, Pennsylvania plant operations into the Fort Wayne facility. The company said it expects the consolidation to be completed in the first quarter of 2008, at which time the Eddystone facility will be closed and the riverfront real estate will be marketed for sale.

The consolidation is another step in Foamex's continuing effort to increase operating efficiencies and grow its market leading Technical Products business.

Jack Johnson, CEO of Foamex, said, "Expanding in the technical and specialty foam sector of the industry is a top priority. The integration of the Eddystone and Fort Wayne operations is one in a series of steps to globally position our plant assets and expertise to service an increasingly dynamic marketplace. Our Fort Wayne facility is a best-in-class operation and we are making significant incremental investments in people, processes and equipment to facilitate this integration. Consolidating these operations will also allow us to further standardize processes, lower costs, and improve customer service, thereby enabling us to be more competitive."

The company expects to realize annualized cost savings in excess of $5 million related to the consolidation. Correspondingly, the company will record related charges totaling approximately $8.1 million through the first quarter of 2008. Approximately $2.1 million of the estimated charges will be non-cash, principally related to accelerating depreciation and amortization.

Transition plans are in place to provide uninterrupted service to customers during the consolidation. Consistent with company policy, impacted employees will receive severance packages and transition services.

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