Chemfab Corporation Announces New Agreement With Birdair.

MERRIMACK, N.H.--(BUSINESS WIRE)--March 25 1999--Chemfab Corporation (NYSE:CFA) today announced that it has reached agreement with Birdair regarding improved ways to develop the architectural membrane market. The agreement represents a concerted approach by the two companies to exploit the anticipated continuation of strong worldwide demand for architectural membrane products. An additional feature of the agreement includes resolution of the Company's dispute with Birdair and the termination of all litigation activity related to the Tent City project. Birdair is one of Chemfab's primary customers in the architectural membrane business for the fabrication and installation of permanent fabric structures throughout the world.

Commenting on the agreement, Dr. John W. Verbicky, Chemfab's President and Chief Executive Officer said, "We are pleased that both companies have taken this opportunity to find ways to enhance our working relationship in the future."

Chemfab Corporation is a world leader in polymer-based engineered products and materials systems for use in severe service environments. Chemfab's principal core competence is in the design, manufacture and fabrication of flexible fiber-reinforced fluoropolymer composite materials which comprise, in whole or in part, the majority of its products. The Company also produces and sells specialty fluoropolymer films and silicone-based products. Worldwide end-use applications are in electrical, environmental, food processing, architectural, aerospace, communications, protective clothing, other industrial markets and consumer bakeware applications.

NOTE: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned those 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 fluctuations in the demand for architectural material, and potential risks resulting from the deficiencies in the quality of raw materials received and in the availability of acceptable raw materials, and any associated penalties due to the shortfall in the Company's deliveries. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested is contained in the Company's 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.