CGW Southeast Partners IV Agrees to Buy Johnston Industries, Inc.; Plans $3 a Share Cash Tender Offer.

Business Editors

COLUMBUS, Ga.--(BUSINESS WIRE)--March 31, 2000

CGW Southeast Partners IV and Johnston Industries, Inc. (NYSE: JII) today jointly announced the signing of a definitive purchase agreement whereby CGW will acquire up to 100 percent of the outstanding shares of Johnston common stock.

The transaction will be structured as a cash tender offer. Pursuant to the agreement, CGW will pay $3.00 per share for each of the approximately 10.7 million outstanding shares of Johnston common stock. At the time the tender offer closes, CGW will also invest approximately $27.0 million in the company as a purchase of common and preferred stock.

CGW expects to commence its cash tender offer for the Johnston shares on or about April 7, 2000. The transaction is expected to be completed within 90 days. The transaction is subject to receipt by CGW of at least a majority of Johnston common stock, which will include the direct purchase of shares by CGW, as well as customary regulatory approvals.

As a result of the transaction, Johnston will become a subsidiary of CGW. Clark Ogle will remain as president and CEO of Johnston Industries. CGW will

maintain the corporate headquarters of Johnston in Columbus, Georgia, and intends to maintain and operate substantially all of Johnston's current manufacturing facilities.

CGW, headquartered in Atlanta, Georgia, is a Delaware limited partnership organized to make strategic investments in distribution and manufacturing businesses throughout the United States.

Johnston Industries, Inc. manufactures and markets engineered textile products primarily for industrial and home furnishings end uses. One of its subsidiaries, Johnston Industries Composite Reinforcements Inc., makes Vectorply(R)and other sophisticated non-crimp multiaxial reinforcing fabrics from fiberglass, carbon and aramid fibers used in a wide variety of applications.

This press release contains statements of a forward-looking nature regarding future events, including without limitation, statements regarding improvements in our order book, expected fourth quarter results and the effect of weaknesses in our markets. These statements are only predictions and actual events may differ materially as a result of risk factors, many of which are outside of our control, including: continued or increased weakness in one or more markets; our ability to sustain an increase in our upholstery substrate order book; our ability to control costs or to offset pricing competition with production efficiencies and economies of scale; and the loss of any key personnel at a time that replacements are not available on terms advantageous to the company. Please refer to documents that Johnston files from time to time with the Securities and Exchange Commission for a further discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.