Advanced Glassfiber Yarns LLC Announces Filing of Plan of Reorganization and Disclosure Statement.

Business Editors

AIKEN, S.C.--(BUSINESS WIRE)--June 23, 2003

Advanced Glassfiber Yarns LLC (the "Company") announced today that it has filed a Plan of Reorganization and Disclosure Statement with the Bankruptcy Court overseeing its reorganization proceedings. The Plan has the support of the Company's secured Bank creditors and represents a significant step in the Company's efforts to complete its restructuring. The Company noted that while the Plan is not currently supported by the unsecured creditors committee appointed in the proceedings, it will endeavor to continue discussions with that committee to attempt to achieve a consensual restructuring. The Company believes that the Plan will ultimately be approved even if such agreement is not achieved.

If confirmed, the Plan will, among other things, satisfy the more than $180 million in claims of the Company's secured lenders through a combination of $120 million in new secured notes and a distribution of new common stock representing a 100% ownership interest in of the reorganized company, prior to dilution. Up to 30% of such new common stock distributed to the secured lenders may be reallocated among other parties in certain circumstances specified in the Plan.

With respect to general unsecured creditors and holders of the Company's 9 7/8% senior subordinated notes, the Plan provides that, if such creditor classes vote to accept the Plan, they will receive their pro rata share of (i) a reallocation from the new common stock distributed to the Company's secured lenders representing 15%, in the aggregate, of the ownership of the reorganized company, prior to dilution, plus (ii) a distribution of warrants that will entitle such holders to additional distributions in certain circumstances. If such general unsecured creditors and/or noteholders do not accept the Plan, they will not receive any distributions. No distributions will be made under the Plan to the Company's equity holders for their existing equity interests, and all such existing equity interests in the Company will be canceled.

Chief Restructuring Officer, Marc L. Pfefferle, stated: "Today's filing is a major step that marks the commencement of the final phase of AGY's operational and financial restructuring." Pfefferle also stated: "We especially want to thank our customers, vendors and employees for their continued support as we move forward with our efforts to confirm the Plan and emerge from Chapter 11, which we believe should occur before year-end."

The Disclosure Statement is subject to approval of the United States Bankruptcy Court in the District of Delaware before it can be mailed to creditors for solicitation of their votes on the Plan. The Bankruptcy Court has not yet set a hearing date for approval of the Disclosure Statement. Additionally, the Plan in its present form may be modified as permitted under the Bankruptcy Code.

In connection with the Plan, the Company also announced that it has reached separate settlements in principle with Owens Corning and Group Porcher, its two equity holders, which, among other things, modifies the terms of certain current business relationships and establishes the terms of go forward business relationships and agreements with such parties, and resolves all claims arising from such relationships. The Company believes that such agreements, which are subject to Bankruptcy Court approval, will significantly aid their restructuring efforts.

Advanced Glassfiber Yarns, headquarters in Aiken, South Carolina, 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.

All statements in this press release other than historical facts are forward-looking statements which involve risks and uncertainties and which are subject to change at any time. Such statements are based on management's expectation at the time they are made. In addition to the assumptions and other factors referred to in connection with these statements, factors set forth in the Company's latest 10-K and 10-Q filed with the Securities and Exchange Commission, among others, could cause actual results to differ materially from those contemplated.

Questions regarding this press release should be directed to Gary Bernhardy, Chief Operating Officer, at 803/643-1501.