Foamex Updates Chapter 11 Case

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Foamex Updates Chapter 11 Case
Linwood, PA, January 24, 2007--Foamex said its equityholders voting on its Second Amended Joint Plan of Reorganization have voted unanimously to accept the Plan. Raymond E. Mabus, Jr., Chairman and Chief Executive Officer of Foamex, said: "We are pleased to have received the unanimous support of the equityholders who voted on the Plan. Over the past several months, we have worked diligently to address the interests of all our stakeholders in an effort to achieve the most value possible for all stakeholders. Today's announcement, along with the previously announced Plan acceptance by the Senior Secured Noteholders, reflects real progress towards our emergence, which we continue to expect to occur in the first quarter of 2007." The Company also announced today that it has filed a supplement (the "Plan Supplement") to the Plan with the United States Bankruptcy Court for the District of Delaware. As anticipated by the Plan, the Plan Supplement contains information and materials relating to implementation of the Plan, including proposed forms of agreements that may be entered into upon the Company's exit from bankruptcy. Among other things, the Plan Supplement discloses the identity of individuals proposed to become directors of the Company upon the effective date of the Plan. The Company's proposed directors are subject to change prior to confirmation of the Plan by the Bankruptcy Court. The proposed new directors are: Mr. Robert B. Burke, Founder and Chief Executive Officer of Par IV Capital Management, LLC; Mr. Seth Charnow of the D. E. Shaw Group; and Mr. Eugene I. Davis, Chairman and Chief Executive Officer of PIRINATE Consulting Group, LLC. The proposed continuing directors are: Mr. Raymond E. Mabus, Jr.; Mr. Gregory J. Christian, the Company's Executive Vice President, Chief Restructuring Officer, Chief Administrative Officer, and General Counsel who will assume the role of President of the reorganized company; and Mr. Thomas M. Hudgins, Retired Partner, Ernst & Young LLP. In addition, Mr. Gregory J. Corona, Chairman of Lakewood Capital, LLC and Accubuilt, Inc., is expected to be invited to serve on the board of directors of Reorganized Foamex International as of the Effective Date. The Plan Supplement contains additional information concerning potential transactions and agreements to be entered into in connection with the consummation of the Plan, including, without limitation, information concerning the proposed exit facility, the equity investment commitment, the proposed corporate governance documents and the proposed executive officers, all of which are subject to revision and modification prior to the Company's emergence from bankruptcy in accordance with the Plan. A hearing to consider confirmation of the Plan is scheduled for February 1, 2007.


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