Chemfab Corporation Announces Its Third European Distributor Acquisition.

MERRIMACK, N.H.--(BUSINESS WIRE)--June 16, 1999--

Chemfab Corporation (NYSE:CFA) today announced that it has completed the acquisition of Synthetica W. Muller GmbH & Co., "Synthetica", a large distributor of Chemfab/Tygaflor products based in the Dusseldorf, Germany area. The acquisition price was for an undisclosed amount of cash.

Synthetica has been a Chemfab/Tygaflor distributor for over 20 years and has established an excellent reputation in the European market for the fabrication and sale of PTFE composite products. The incremental sales from this acquisition on an annual basis are expected to be over $2.5 million. This activity marks the third distributor acquisition by Chemfab in Germany in the last ten months. The Company's combined annual German revenues are expected to be over $13 million. Chemfab continues to pursue other acquisitions globally and has announced four acquisitions in the last year with aggregate revenues of over $32 million.

Commenting on the announcement, Dr. John W. Verbicky, Chemfab's President and Chief Executive Officer, said, "With the addition of Synthetica to our European fabrication and distribution operations, we now have reached a critical mass. We plan to immediately consolidate the operations of the three acquisitions we have made in Germany over the past nine months. The consolidation and relocation activities into a single new location in the Cologne, Germany area will begin during the first week of July and is expected to be completed within ninety days. We expect no disruptions in supply or service to our customers during this relocation and consolidation. The integration of these three acquired businesses will provide Chemfab Germany with the ability to reduce inventory levels, overhead staffing and administrative costs." Chemfab Germany will be the largest fabricator and distributor of PTFE coated fabric products in the European community.

Verbicky added, "We expect this consolidation to provide further leverage in extracting shareholder value from these businesses and is an important strategic step in our continued effort to bring ourselves closer to our end-use customer base."

Chemfab Corporation is a leader in the design, manufacture, fabrication and marketing of 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 the 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, 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.