Mar., 07 /NORTH CHARLESTON, S.C., -- Polymer Group, Inc. (OTC Bulletin Board: PMGPQ) announced today that its previously confirmed plan of reorganization became effective on March 5, 2003. The Company also announced that all shares of Polymer Group's existing stock ("Old Common Stock") have been cancelled and the Company has issued new stock ("New Common stock"). With 96% of the New Common Stock distributed to creditors and the remaining 4% distributed to existing stockholders pro rata.

Emerging from Bankruptcy, Polymer Group, Inc. now has total debt of approximately $500 million, down from approximately $1.1 billion when it entered the proceedings. Virtually all of the Company's continuing suppliers with pre-bankruptcy claims are being paid in full.

Polymer Group will initially have two publicly traded classes of Common Stock consisting of approximately 9.6 million shares of Class A New Common Stock being issued to the creditors and 400,000 shares of Class B New Common Stock being issued to existing shareholders. Both classes have similar rights with the exception of certain limited anti-dilution provisions for the Class B Common Stock. Both classes of stock will trade on the OTC Bulletin Board. The Class A Common Stock will trade on a "when issued basis" with the symbol POLGV while the Class B Common Stock will trade on a "when issued basis" with the ticker symbol POLBV. The Company is also issuing $50 million aggregate principal amount of 10% Convertible Subordinated Notes due 2007, which are initially convertible into shares of Class A Common Stock representing approximately 40% of the outstanding equity securities of the Company.

The record date under the plan of reorganization for determining the existing common stockholders who are entitled to receive shares of New Class B Common Stock was the close of business on February 12, 2003. Shares of New Class B Common Stock will be issued to record holders at a ratio of approximately one new share for each 80.01 shares of Old Common Stock. No fractional shares of New Common Stock, or cash in lieu thereof, will be issued. Instead, fractions of one-half share or greater will be rounded to the next higher whole number and fractions of less than one-half share will be rounded to the next lower whole number. In addition, existing stockholders will be receiving Class A and Class B Warrants, which are exercisable in certain limited circumstances for shares of Class D and Class E Common Stock, respectively, allowing the holders to participate in certain distributions in excess of certain thresholds.

Commenting on the Company's emergence, Polymer Group's Chairman, President & CEO, Jerry Zucker, stated, "We are very pleased to have this difficult period behind us. We have emerged as a stronger company with a solid future ahead of us."

Polymer Group, Inc., the world's third largest producer of nonwovens, is a global, technology-driven developer, producer and marketer of engineered materials. With the broadest range of process technologies in the nonwovens industry, PGI is a global supplier to leading consumer and industrial product manufacturers. The Company employs approximately 4,000 people and operates 25 manufacturing facilities throughout the world.

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause actual results to differ from those indicated in forward-looking statements can include, but are not limited to, the following: (i) increased competition in markets in which the Company competes, (ii) increased costs, (iii) changes in conditions of the general economy and (iv) the Company's substantial leverage position. Investors and other readers are directed to consider the risks and uncertainties discussed in documents filed by Polymer Group, Inc. with the Securities and Exchange Commission, including the Company's 2001 Annual Report on Form 10-K and the Company's Amended Modified Disclosure Statement for Joint Amended Modified Plan of Reorganization under Chapter 11 of the Bankruptcy Code dated November 25, 2002.

For further information, please contact: Robert Johnston or Dennis Norman Investor Relations Polymer Group, Inc. P.O. Box 5069 North Charleston, South Carolina, 29405 Telephone No.: (843) 566-7293 E-mail: johnstonr@pginw.com Web: www.polymergroupinc.com