Advanced Glassfiber Yarns LLC Announces Confirmation of its Plan of Reorganization.

Business Editors

AIKEN, S.C.--(BUSINESS WIRE)--March 8, 2004

Advanced Glassfiber Yarns LLC (the "Company") announced today that its Chapter 11 Reorganization Plan was approved by the United States Bankruptcy Court for the District of Delaware, paving the way for the Company to consummate its restructuring and emerge from Chapter 11. The Company expects to emerge from Chapter 11 in April, 2004.

The Reorganization Plan provides that approximately $184 million of secured obligations owed to the Company's pre-petition senior secured lenders will be exchanged for new secured indebtedness of $120 million, with the remainder exchanged for an approximately 70% share of common equity in the reorganized Company. The Reorganization Plan also provides that the Company's existing senior subordinated bondholder debt (of approximately $163 million) and its pre-petition general unsecured debt will be converted into common equity of the reorganized Company. Current shareholders will not receive a distribution under the Reorganization Plan and their existing equity interests will be canceled.

Consummation of the Reorganization Plan is conditioned upon, among other things, the finalization of documentation required by the Reorganization Plan including a $30 million revolving credit facility for which the Company has received a commitment. This facility is available to fund cash costs of exiting Chapter 11 as well as the Company's ongoing operations.

Marc L. Pfefferle, the Company's Chief Restructuring Officer, stated: "The Company's Reorganization Plan positions us to emerge from Chapter 11 with a substantially improved balance sheet and a significantly deleveraged capital structure. We are now working diligently to complete the requisite legal and financial documents necessary to consummate the Reorganization Plan, and are excited about our future prospects."

Mr. Pfefferle added, "A lot of people worked very hard and made significant sacrifices to put AGY on a solid foundation going forward. The Company expresses a sincere thanks to all those employees, vendors, customers and to the Aiken and Huntingdon, PA communities for their valuable support during this time of transition."

Advanced Glassfiber Yarns, headquartered in Aiken, SC, is one of the largest global suppliers of glass yarns, which are a critical material used in a variety of electronic, industrial construction and specialty applications.

Certain statements contained herein constitute "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995. Such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be different from those contemplated. We assume no obligation to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting such statements.