Chemfab Corporation Announces Acquisition of Fabricator in Italy.

Business Editors

MERRIMACK, N.H.--(BUSINESS WIRE)--Dec. 28, 1999

Chemfab Corporation (NYSE:CFA) today announced that it has completed the acquisition of Orvims s.p.a.'s, PTFE - coated materials business, a large Italian fabricator of Chemfab products based in Italy. The acquisition price was paid in an undisclosed amount of cash.

Orvim has been a converter of Chemfab products for over 15 years and has established an excellent reputation in the Italian market for the fabrication and sale of high performance PTFE composite products. The incremental annual sales from this acquisition are expected to be under $1 million. This transaction marks the fifth fabricator acquisition by Chemfab in Europe in the last 15 months.

Commenting on the announcement, Dr. John W. Verbicky, Chemfab's President and Chief Executive Officer, said, "The addition of Orvim's PTFE business to our European operations establishes Chemfab as the largest and the most comprehensive PTFE composite product manufacturer and fabricator in Europe. The acquisitions completed in Europe increased our sales to end-use European customers by 80%. We believe that this strategic position will allow us to quickly identify and take advantage of future market opportunities."

"Chemfab's network of European locations now includes the U.K., Ireland, Italy, France, Spain and Germany", Dr. Verbicky explained. "We believe that our geographic positioning of fabrication facilities on the Continent gives us a capability unmatched by our competitors to communicate with and service our end-use customers."

Chemfab Corporation is a leader in the design, manufacture, fabrication and marketing value added polymer-based products which deliver outstanding performance in severe service and highly specialized operating environments. Chemfab manufactures a broad range of high performance polymer based, reinforced and unreinforced fluoroplastics, fluoroelastomers, silicone elastomers and adhesives. The Company's products include laminates, films, coated fabrics, and tapes. The Company also produces molded polymer products and fabricated finished articles from roll goods. Worldwide end-use applications are in medical, food processing, biomedical, protective clothing, electronics, communications, aerospace, architectural and other industrial markets and applications.

NOTE: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, including acquisition and transition challenges, assimilation issues in the consolidation process, customer reaction to the acquisitions, and operational and other risks relating to the combination of separate businesses . Additional information concerning certain other risks and uncertainties that could cause actual results to differ materially from those projected or suggested, is contained in the Company's other press releases and filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or the Company upon request. The forward-looking statements contained herein represent the Company's judgment as of the date of this release, and the Company cautions readers not to place undue reliance on such statements.