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FORSTMANN & COMPANY, INC. ANNOUNCES EXPIRATION OF EXCHANGE OFFER, CONSENT SOLICITATION AND THE ELECTION OF TWO NEW DIRECTORS

 FORSTMANN & COMPANY, INC. ANNOUNCES EXPIRATION OF EXCHANGE OFFER,
 CONSENT SOLICITATION AND THE ELECTION OF TWO NEW DIRECTORS
 NEW YORK, Jan. 8 /PRNewswire/ -- Forstmann & Company, Inc. announced today that its exchange offer expired by its terms at midnight, New York City time, on Jan. 7, 1992.
 Pursuant thereto, approximately $46.2 million aggregate face amount of the outstanding subordinated notes was accepted for exchange by the company. As previously disclosed, Forstmann will exchange $580 in cash, a certain number of unregistered shares of its common stock and cash in an amount equal to the accrued interest thereon up to (but not including) the date on which the exchange offer is consummated for each $1,000 face amount of the subordinated notes accepted for exchange.
 Payment for the subordinated notes accepted for exchange is conditioned upon, among other things, the consummation of the previously disclosed initial public offering by the company of 3,100,000 shares of its common stock, for which it originally filed a registration statement on Dec. 9, 1991.
 Forstmann also announced that on Dec. 30, 1991, the company successfully consummated a solicitation of consents from holders of subordinated notes. Forstmann sought consents to waive certain provisions in the indenture in order to permit the company to consummate a merger of a corporation formed for the purpose of a merger with and into Forstmann. The primary purpose of the merger is to effect a proportionate share reduction of the company's existing common equity, which will provide the company with the appropriate capital structure for the initial public offering.
 The company received consents from holders of the requisite majority of subordinated notes (constituting a majority of subordinated notes issued and outstanding and not held by affiliates of the company) and such consents became irrevocable. Pursuant to the terms of the exchange offer, Forstmann will amend the subordinated notes indenture to covenant not to exercise its optional redemption right only if the merger, the public offering of common stock and the exchange offer are consummated on or prior to Dec. 31, 1992.
 In addition, on Dec. 27, 1991, the shareholders of Forstmann elected, by majority written consent, Messrs. Cameron Clark, Jr. and Hubert J. Horan to the board of directors. Messrs. Clark and Horan will serve as the board's independent directors.
 Clark is the president and chief executive officer of Production Sharing International, Ltd., which he founded to assist U.S. manufacturers in establishing offshore manufacturing facilities in developing countries, serve developing countries in promoting Free Trade Zones, attract foreign investment and develop export promotion programs.
 Horan has been president and chief executive officer of Central Textiles, Inc. a South Carolina-based spinner and weaver of fabrics for the industrial market, for the past seven years. He is also a partner in Harris Horan Textile Associates, Inc., a converter and selling agent of various textile fabrics, and a trustee of the Institute of Textile Technology in Charlottesville, Va. He has also served as chairman of the technical advisory committee of the American Apparel Manufacturers Association.
 Forstmann & Co. is a leading designer, manufacturer and marketer of fashionable, high quality fabrics for brand-name womenswear, menswear and outerwear, as well as interior textiles and specialty fabrics.
 -0- 1/8/92
 /CONTACT: Dawn Dover of Kekst and Company, 212-593-2655, for Forstmann/ CO: Forstmann & Company, Inc. ST: New York IN: TEX SU: OFR


KD -- NY125 -- 7970 01/08/92 17:04 EST
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Date:Jan 8, 1992
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