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CONE MILLS ANNOUNCES JOINT VENTURE IN MEXICO

 GREENSBORO, N.C., March 29 /PRNewswire/ -- Cone Mills Corporation (NYSE: COE) announced today that a letter of intent has been signed with Compania Industrial de Parras S.A. (CIPSA), the largest denim manufacturer in Mexico, that provides for the formation of a joint venture company having as its principal purpose the construction and operation of a world-class denim manufacturing plant in Mexico. The letter of intent also provides for Cone to make a 20 percent equity investment in CIPSA and to sign technical services and marketing agreements. The transaction is subject to certain contingencies including negotiation of final agreements, appropriate government approval and approval by the boards of directors of both companies.
 Cone's minority investment in CIPSA will be approximately $21 million. The company's financial commitment for its 50 percent investment in the future joint venture denim plant is estimated to range from $20-$30 million and will be matched by CIPSA. The joint venture will arrange additional debt financing.
 J. Patrick Danahy, Cone president and chief executive officer, said: "Cone is entering into this joint venture and making this investment in CIPSA, a leading, 95-year-old Mexican denim company, to develop an international manufacturing platform to serve growing worldwide markets. This partnership will enhance the competitive positions of both companies by broadening their respective product lines."
 Danahy further stated: "Cone is committed to its continuing capital investment program for U.S. manufacturing facilities. During 1993 the company expects to invest $39 million in capital improvements, primarily for expansion of denim manufacturing and screen printing operations."
 Founded in 1891 and headquartered in Greensboro, N.C., Cone Mills is the largest producer of denim fabrics in the world and the largest printer of home furnishings fabrics in the United States. The company's manufacturing plants are located in North Carolina, South Carolina and Mississippi. Cone recently announced 1992 sales of $705.4 million and net income of $43.4 million.
 -0- 3/29/93
 /CONTACT: James S. Butner, Vice President, Cone Mills, 919-379-6459/
 (COE)


CO: Cone Mills Corporation; Compania Industrial de Parras S.A. ST: North Carolina IN: TEX SU: JVN

CM -- CH001 -- 0361 03/29/93 09:07 EST
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Publication:PR Newswire
Date:Mar 29, 1993
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