Chemfab Corporation Receives $28 Million Contract Largest Order in Its History.

MERRIMACK, N.H.--(BUSINESS WIRE)--Oct. 5, 1998--Chemfab Corporation (NYSE:CFA), a world leader in polymer-based products, today announced that it has entered into a $28 million dollar contract to supply fluoropolymer coated fabric for the second phase of a three phase project in Mina, Kingdom of Saudi Arabia, known as "Tent City".

The Kingdom-sponsored project is designed to provide shelters for millions of pilgrims during the annual pilgrimage, or Hajj, to Mecca. Chemfab expects to ship approximately 7 million square feet of roofing membrane (enough fabric to cover 160 acres), which will house over a quarter of a million pilgrims in approximately 7,300 shelters. Chemfab expects to recognize the entire revenue from this contract in fiscal 1999. Delivery is expected to commence in November 1998, and the last shipment is expected to be in February 1999.

Commenting on this order, Mr. John W. Verbicky, Chemfab's President and Chief Executive Officer said, "This is the third major project in the Kingdom of Saudi Arabia in which Chemfab has participated. We are both pleased and proud to be supporting the Kingdom's efforts to ensure the safety of the millions of pilgrims who make the holy journey each year. The award of this contract will further strengthen Chemfab's ability to pursue growth opportunities for the future."

Mr. Michael P. Cushman, a Chemfab Vice President and Project Director commented, "The Company is honored to have been selected to be a membrane supplier to this project. This contract represents over 25% of our fiscal 1998 sales of $104.5 million. We are well positioned to manufacture and ship this order under a very tight timeframe." Mr. Cushman also explained that "the Company is pursuing settlement of the previously disclosed litigation regarding this project."

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 raw material procurement, production and related risks, and shipment delays for a contract of this magnitude, and fluctuation in the demand for architectural material. Additional information concerning litigation regarding the Tent City project and certain other 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.