Chemfab Corporation adds production space at headquarters site.

MERRIMACK, N.H.--(BUSINESS WIRE)--Aug. 19, 1996--Chemfab Corporation (NASDAQ:CMFB) today announced that it has completed the construction of a new 15,000 square foot building on company-owned land at its corporate headquarters site in Merrimack, N.H. The building, the construction of which was completed in the company's fiscal year ended June 30, 1996 at a cost of approximately $700,000, is now equipped and occupied.

This new structure increases manufacturing capacity at the site for fabricated products and systems, and is expected to result in productivity improvements due to the improved factory lay-out and clear-span design. Fabrication of large-size products and engineered systems such as radomes and planar coverings for communications equipment, which previously had been performed in the company's existing 170,000 square foot building at the 21 acre site, has been transferred to the new building.

Commenting on this important addition at the Company's headquarters site, Duane C. Montopoli, Chemfab's President and Chief Executive Officer, said "Demand for highly-engineered fabricated systems based on the company's fluoropolymer composite materials has increased significantly over the past year. This new building enables us to better respond to that increase in demand and it provides additional capacity to support further growth in the future."

Chemfab Corporation is a world leader in the development, manufacturing and marketing of polymer-based engineered products and materials systems for use in severe service environments. The company's products typically consist of fiber-reinforced flexible composites, coated or laminated with fluoropolymers, and specialty fluoropolymer films. Worldwide end-use applications are in electronics, environmental, food processing, architectural, aerospace, communications, protective clothing and other industrial markets.

CONTACT: CHEMFAB CORPORATION

Moosa E. Moosa, 603/424-9000