Propex Reports 3Q Financials

Chattanooga, TN, November 15, 2006-- Propex Inc. today reported 2006 third quarter financial results. On January 31, 2006, the Company acquired all the outstanding capital stock of SI Concrete Systems Corporation (now Propex Concrete Systems Corporation) and SI Geosolutions Corporation (now Propex Geosolutions Corporation), collectively known as SI, for approximately $232.6 million including certain purchase price adjustments and direct acquisition costs. These results include SI's results of operations from January 31, 2006. For the three months ended September 30, 2006, total net revenue increased $28.4 million, or 17.1%, to $194.6 million from $166.2 million in the corresponding period of the prior year. This net revenue increase is due to an increase in North America geosynthetic net revenue of $18.2 million, an increase in North America industrial products net revenue of $10.0 million, an increase in Europe net revenue of $3.6 million and concrete fiber net revenues of $18.3 million. These segment increases were partially offset by a $21.3 million net revenue decrease in North America furnishings and a $0.4 million decrease in Brazil. In addition, a softening of the general economic trends negatively impacted revenues. For the nine months ended September 30, 2006, total net revenue increased $95.5 million, or 19.3%, to $591.3 million from $495.8 million in the corresponding period of the prior year. This net revenue increase is due to an increase in North America geosynthetic net revenue of $50.6 million, an increase in North America industrial products net revenue of $26.5 million, an increase in Europe net revenue of $3.9 million and concrete fiber net revenues of $48.0 million. These segment increases were partially offset by a $31.9 million net revenue decrease in North America furnishings and a $1.6 million decrease in Brazil. In addition, a softening of the general economic trends negatively impacted revenues. For the North America geosynthetic and North America industrial segments, the net revenue increase for both the quarter and year-to-date periods was primarily due to the inclusion of SI's revenues for the post January 31st period and the successful pass-through of higher raw material costs. For the furnishings segment, the net revenue decrease for both the quarter and year- to-date periods was primarily due to volume decreases in carpet backing resulting from the backward integration efforts of Shaw Industries and Mohawk Industries, Inc., two of our largest customers during 2005. Partially offsetting this was the inclusion of revenue from the furnishing segment related to the SI acquisition. The increase in net revenue in Europe for the three months and nine months ended September 30, 2006 reflects favorable product mix changes, the beginnings of improvement in the European economy with somewhat improved consumer spending, and the partial pass-through of higher raw material costs. The net revenue decrease for Brazil for both the quarter and year-to-date periods was due to the negative impact of Brazil's recent tight monetary policy on general commercial activity and specifically the agricultural sector into which many of our products are sold and capacity additions by our competitors. The concrete fiber revenues for the three and nine months ended September 30, 2006 relate entirely to the business acquired from SI, therefore there are no comparable net revenue amounts for the three months and nine months ended September 30, 2005. For the three months ended September 30, 2006, cost of sales increased 15.7% to $160.3 million from $138.6 million in the corresponding period of the prior year. The increase in cost of sales primarily reflects the inclusion of SI results for the post January 31st period.

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