----

----

| New York                        | 11-2165495          |
|---------------------------------|---------------------|
| (State or other jurisdiction of | (I.R.S. Employer    |
| incorporation or organization)  | Identification No.) |

| P.O. Box 19109 - 7201 West Friendly Avenue Greensboro, NC | 27419      |
|-----------------------------------------------------------|------------|
| (Address of principal executive offices)                  | (Zip Code) |

----

----

|     |                                                                   | Page   |
|----------|------------------------------------------------------------------------|--------|
|     | Part I.  Financial Information                               |   |
| Item 1.  | Financial Statements:                                                  |   |
|     | Condensed Consolidated Balance Sheets as of                            |   |
|     | September 26, 2010 and June 27, 2010                                   | 3      |
|     |                                                                   |   |
|     | Condensed Consolidated Statements of Operations for the Quarters Ended |   |
|     | September 26, 2010 and September 27, 2009                              | 4      |
|     |                                                                   |   |
|     | Condensed Consolidated Statements of Cash Flows for the Quarters Ended |   |
|     | September 26, 2010 and September 27, 2009                              | 5      |
|     |                                                                   |   |
|     | Notes to Condensed Consolidated Financial Statements                   | 6      |
|     |                                                                   |   |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition      |   |
|     | and Results of Operations                                              | 23     |
|     |                                                                   |   |
| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk             | 38     |
|     |                                                                   |   |
| Item 4.  | Controls and Procedures                                                | 40     |
|     |                                                                   |   |
|     |                                                                   |   |
|     |                                                                   |   |
|     | Part II.  Other Information                                  |   |
| Item 1.  | Legal Proceedings                                                      | 40     |
|     |                                                                   |   |
| Item 1A. | Risk Factors                                                           | 40     |
|     |                                                                   |   |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds            | 41     |
|     |                                                                   |   |
| Item 3.  | Defaults Upon Senior Securities                                        | 41     |
|     |                                                                   |   |
| Item 4.  | [Removed and Reserved.]                                                | 41     |
|     |                                                                   |   |
| Item 5.  | Other Information                                                      | 41     |
|     |                                                                   |   |
| Item 6.  | Exhibits                                                               | 41     |

----

|                                                       |   | September 26,2010 |     |   | June 27, 2010 |   |
|------------------------------------------------------------|--------|-------------------|----------|--------|--------------------|--------|
|                                                       |   | (Unaudited)       |     |   |               |   |
| ASSETS                                                     |   |              |     |   |               |   |
| Current assets:                                            |   |              |     |   |               |   |
| Cash and cash equivalents                                  |   | $                 | 26,274   |   |               | $      | 42,691 |   |
| Receivables, net                                           |   |              | 95,404   |   |               |   | 91,243 |   |
| Inventories                                                |   |              | 120,410  |   |               |   | 111,007 |   |
| Deferred income taxes                                      |   |              | 1,647    |   |               |   | 1,623 |   |
| Other current assets                                       |   |              | 9,465    |   |               |   | 6,119 |   |
| Total current assets                                       |   |              | 253,200  |   |               |   | 252,683 |   |
|                                                       |   |              |     |   |               |   |   |   |
| Property, plant and equipment                              |   |              | 757,069  |   |               |   | 747,857 |   |
| Less accumulated depreciation                              |   |              | (604,732 | )      |               |   | (596,358 | ) |
|                                                       |   |              | 152,337  |   |               |   | 151,499 |   |
| Intangible assets, net                                     |   |              | 13,496   |   |               |   | 14,135 |   |
| Investments in unconsolidated affiliates                   |   |              | 80,494   |   |               |   | 73,543 |   |
| Other non-current assets                                   |   |              | 9,795    |   |               |   | 12,605 |   |
| Total assets                                               |   | $                 | 509,322  |   |               | $      | 504,465 |   |
|                                                       |   |              |     |   |               |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                 |   |              |     |   |               |   |   |   |
| Current liabilities:                                       |   |              |     |   |               |   |   |   |
| Accounts payable                                           |   | $                 | 45,093   |   |               | $      | 40,662 |   |
| Accrued expenses                                           |   |              | 18,827   |   |               |   | 21,725 |   |
| Income taxes payable                                       |   |              | 1,368    |   |               |   | 505 |   |
| Current portion of notes payable                           |   |              | —  |   |               |   | 15,000 |   |
| Current maturities of long-term debt and other liabilities |   |              | 327      |   |               |   | 327 |   |
| Total current liabilities                                  |   |              | 65,615   |   |               |   | 78,219 |   |
|                                                       |   |              |     |   |               |   |   |   |
| Notes payable, less current portion                        |   |              | 163,722  |   |               |   | 163,722 |   |
| Long-term debt and other liabilities                       |   |              | 2,700    |   |               |   | 2,531 |   |
| Deferred income taxes                                      |   |              | 255      |   |               |   | 97 |   |
| Commitments and contingencies                              |   |              |     |   |               |   |   |   |
| Shareholders’ equity:                                |   |              |     |   |               |   |   |   |
| Common stock (a)                                           |   |              | 2,006    |   |               |   | 2,006 |   |
| Capital in excess of par value (a)                         |   |              | 31,770   |   |               |   | 31,579 |   |
| Retained earnings                                          |   |              | 226,418  |   |               |   | 216,183 |   |
| Accumulated other comprehensive income                     |   |              | 16,836   |   |               |   | 10,128 |   |
|                                                       |   |              | 277,030  |   |               |   | 259,896 |   |
| Total liabilities and shareholders’ equity           |   | $                 | 509,322  |   |               | $      | 504,465 |   |

----

|                                                     |   | For the Quarters Ended  |    |
|----------------------------------------------------------|--------|-------------------------|---------|
|                                                     |   | September 26, 2010 |    |   | September 27, 2009 |   |
|                                                     |   |                    |    |   |   |   |
| Summary of Operations:                                   |   |                    |    |   |   |   |
| Net sales                                                |   | $                       | 174,020 |   |   | $ | 142,851 |   |
| Cost of sales                                            |   |                    | 152,857 |   |   |   | 123,445 |   |
| Restructuring charges                                    |   |                    | 363     |   |   |   | — |   |
| Write down of long-lived assets                          |   |                    | — |   |   |   | 100 |   |
| Selling, general and administrative expenses        |   |                    | 11,127  |   |   |   | 11,164 |   |
| (Benefit) provision for bad debts                        |   |                    | (41     | ) |   |   | 576 |   |
| Other operating expense (income), net                    |   |                    | 243     |   |   |   | (87 | ) |
|                                                     |   |                    |    |   |   |   |   |   |
| Non-operating (income) expense:                          |   |                    |    |   |   |   |   |   |
| Interest income                                          |   |                    | (743    | ) |   |   | (746 | ) |
| Interest expense                                         |   |                    | 5,269   |   |   |   | 5,492 |   |
| Loss (gain) on extinguishment of debt                    |   |                    | 1,144   |   |   |   | (54 | ) |
| Equity in earnings of unconsolidated affiliates          |   |                    | (8,951  | ) |   |   | (2,063 | ) |
| Income from operations before income taxes               |   |                    | 12,752  |   |   |   | 5,024 |   |
| Provision for income taxes                               |   |                    | 2,517   |   |   |   | 2,535 |   |
| Net income                                               |   | $                       | 10,235  |   |   | $ | 2,489 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Income per common share:                                 |   |                    |    |   |   |   |   |   |
| Basic                                                    |   | $                       | .51     |   |   | $ | .12 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Diluted                                                  |   | $                       | .50     |   |   | $ | .12 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Weighted average outstanding shares of common stock (a): |   |                    |    |   |   |   |   |   |
| Basic                                                    |   |                    | 20,057  |   |   |   | 20,686 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Diluted                                                  |   |                    | 20,379  |   |   |   | 20,686 |   |

----

|                                                                                |   | For the Quarters Ended  |    |
|-------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                |   | September 26, 2010 |    | September 27, 2009 |   |
|                                                                                |   |                    |    |   |   |
| Cash and cash equivalents at beginning of year                                      |   | $                       | 42,691  |   |   | $ | 42,659 |   |
| Operating activities:                                                               |   |                    |    |   |   |   |   |   |
| Net income                                                                          |   |                    | 10,235  |   |   |   | 2,489 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:   |   |                    |    |   |   |   |   |   |
| Earnings of unconsolidated affiliates, net of distributions                         |   |                    | (6,419  | ) |   |   | (452 | ) |
| Depreciation                                                                        |   |                    | 5,850   |   |   |   | 5,805 |   |
| Amortization                                                                        |   |                    | 893     |   |   |   | 1,168 |   |
| Stock-based compensation expense                                                    |   |                    | 192     |   |   |   | 593 |   |
| Deferred compensation expense                                                       |   |                    | 155     |   |   |   | 177 |   |
| Net gain on asset sales                                                             |   |                    | (65     | ) |   |   | (94 | ) |
| Loss (gain) on extinguishment of debt                                               |   |                    | 1,144   |   |   |   | (54 | ) |
| Write down of long-lived assets                                                     |   |                    | — |   |   |   | 100 |   |
| Deferred income tax                                                                 |   |                    | 225     |   |   |   | 63 |   |
| (Benefit) provision for bad debts                                                   |   |                    | (41     | ) |   |   | 576 |   |
| Other                                                                               |   |                    | 7       |   |   |   | 40 |   |
| Change in assets and liabilities, excluding effects of foreign currency adjustments |   |                    | (8,165  | ) |   |   | 2,811 |   |
| Net cash provided by operating activities                                           |   |                    | 4,011   |   |   |   | 13,222 |   |
|                                                                                |   |                    |    |   |   |   |   |   |
| Investing activities:                                                               |   |                    |    |   |   |   |   |   |
| Capital expenditures                                                                |   |                    | (5,495  | ) |   |   | (2,106 | ) |
| Investment in unconsolidated affiliate                                              |   |                    | (225    | ) |   |   | — |   |
| Change in restricted cash                                                           |   |                    | — |   |   |   | 1,763 |   |
| Proceeds from sale of capital assets                                                |   |                    | 180     |   |   |   | 107 |   |
| Net cash used in investing activities                                               |   |                    | (5,540  | ) |   |   | (236 | ) |
|                                                                                |   |                    |    |   |   |   |   |   |
| Financing activities:                                                               |   |                    |    |   |   |   |   |   |
| Payments of notes payable                                                           |   |                    | (15,863 | ) |   |   | — |   |
| Payments of other long-term debt                                                    |   |                    | (40,525 | ) |   |   | (2,198 | ) |
| Borrowings of other long-term debt                                                  |   |                    | 40,525  |   |   |   | — |   |
| Debt refinancing fees                                                               |   |                    | (821    | ) |   |   | — |   |
| Net cash used in financing activities                                               |   |                    | (16,684 | ) |   |   | (2,198 | ) |
|                                                                                |   |                    |    |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                        |   |                    | 1,796   |   |   |   | 2,253 |   |
| Net (decrease) increase in cash and cash equivalents                                |   |                    | (16,417 | ) |   |   | 13,041 |   |
| Cash and cash equivalents at end of period                                          |   | $                       | 26,274  |   |   | $ | 55,700 |   |

----

|                       |   | September 26, 2010 |    |   | June 27, 2010 |   |
|----------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                       |   |               |    |   |               |   |
| Raw materials and supplies |   | $                  | 53,242  |   |               | $      | 51,255 |   |
| Work in process            |   |               | 6,452   |   |               |   | 6,726 |   |
| Finished goods             |   |               | 60,716  |   |               |   | 53,026 |   |
|                       |   | $                  | 120,410 |   |               | $      | 111,007 |   |

|                                                                                 |   | September 26, 2010 |   |   | June 27, 2010 |   |
|--------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
|                                                                                 |   |               |   |   |               |   |
| Prepaid expenses:                                                                    |   |               |   |   |               |   |
|    Insurance                                                          |   | $                  | 1,053  |   |               | $      | 823 |   |
|    Value added tax                                                    |   |               | 2,250  |   |               |   | 2,281 |   |
|    Information technology services                                    |   |               | 201    |   |               |   | 222 |   |
|    Cash surrender value of life insurance of former key employees (a) |   |               | 3,241  |   |               |   | — |   |
|    Other                                                              |   |               | 973    |   |               |   | 360 |   |
| Deposits                                                                             |   |               | 1,747  |   |               |   | 2,433 |   |
|                                                                                 |   | $                  | 9,465  |   |               | $      | 6,119 |   |

| (a)   | The Company has reclassified $3.2 million as current as of September 26, 2010 due to the expected surrender of certain policies during the second quarter of fiscal year 2011. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                 |   | Aggregate Amortization Expenses |   |
|----------------------|--------|---------------------------------|--------|
|                 |   | 2012                            |   |   | 2013 |   |   | 2014 |   |   | 2015 |   |   | 2016 |   |
|                 |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer list        |   | $                               | 2,022  |   |   | $ | 1,837 |   |   | $ | 1,481 |   |   | $ | 1,215 |   |   | $ | 969 |   |
| Non-compete contract |   |                            | 381    |   |   |   | 381 |   |   |   | 381 |   |   |   | 381 |   |   |   | 190 |   |
|                 |   | $                               | 2,403  |   |   | $ | 2,218 |   |   | $ | 1,862 |   |   | $ | 1,596 |   |   | $ | 1,159 |   |

|  Affiliate Name                                       | Date Acquired |  Locations                                       | Percent Ownership |
|------------------------------------------------------------|---------------|-------------------------------------------------------|-------------------|
| Parkdale America, LLC (“PAL”)                  | Jun-97        | North Carolina, South Carolina, Virginia, and Georgia | 34%               |
|                                                       |          |                                                  |              |
| U.N.F. Industries, LLC (“UNF”)                 | Sep-00        | Migdal Ha – Emek, Israel                        | 50%               |
|                                                       |          |                                                  |              |
| UNF America, LLC (“UNF America”)               | Oct-09        | Ridgeway, Virginia                                    | 50%               |
|                                                       |          |                                                  |              |
| Repreve Renewables, LLC (“Repreve Renewables”) | Apr-10        | Soperton, Georgia                                     | 40%               |

|                                            |   | September 26, 2010 |    |   | June 27, 2010 |   |
|-------------------------------------------------|--------|-------------------------|---------|--------|--------------------|--------|
|                                            |   | (Unaudited)             |    |   | (Unaudited)        |   |
| Current assets                                  |   | $                       | 212,130 |   |               | $      | 211,220 |   |
| Non-current assets                              |   |                    | 155,382 |   |               |   | 127,081 |   |
| Current liabilities                             |   |                    | 57,641  |   |               |   | 53,458 |   |
| Non-current liabilities                         |   |                    | 33,879  |   |               |   | 27,621 |   |
| Shareholders’ equity and capital accounts |   |                    | 275,992 |   |               |   | 257,222 |   |

|                          | For the Quarters Ended  |   |
|-------------------------------|-------------------------|--------|
|                          | September 26, 2010 |   | September 27, 2009 |   |
|                          | (Unaudited)             |   | (Unaudited) |   |
| Net sales                     |                    | $      | 221,377 |   |   | $ | 99,446 |   |
| Gross profit                  |                    |   | 29,099 |   |   |   | 8,655 |   |
| Depreciation and amortization |                    |   | 6,865 |   |   |   | 5,026 |   |
| Income from operations        |                    |   | 25,172 |   |   |   | 5,411 |   |
| Net income                    |                    |   | 26,379 |   |   |   | 7,518 |   |

----

----

|                                                               |   | September 26, 2010 |   |   | June 27,2010 |   |
|--------------------------------------------------------------------|--------|-------------------------|--------|--------|--------------|--------|
|                                                               |   |                    |   |   |         |   |
| Cash surrender value of life insurance of former key employees (a) |   | $                       | 374    |   |         | $      | 3,615 |   |
| Bond issue costs and debt refinancing fees                         |   |                    | 3,870  |   |         |   | 3,585 |   |
| Long-term deposits                                                 |   |                    | 5,430  |   |         |   | 5,281 |   |
| Other                                                              |   |                    | 121    |   |         |   | 124 |   |
|                                                               |   | $                       | 9,795  |   |         | $      | 12,605 |   |

| (a)   | The Company has reclassified $3.2 million as current as of September 26, 2010 due to the expected surrender of certain policies during the second quarter of fiscal year 2011. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                        |   | September 26, 2010 |    |   | June 27,2010 |   |
|-----------------------------|--------|-------------------------|---------|--------|--------------|--------|
|                        |   |                    |    |   |         |   |
| Payroll and fringe benefits |   | $                       | 7,805   |   |         | $      | 14,127 |   |
| Severance                   |   |                    | — |   |         |   | 301 |   |
| Interest                    |   |                    | 6,964   |   |         |   | 2,429 |   |
| Utilities                   |   |                    | 2,476   |   |         |   | 2,539 |   |
| Retiree reserve             |   |                    | 123     |   |         |   | 165 |   |
| Property  taxes   |   |                    | — |   |         |   | 876 |   |
| Other                       |   |                    | 1,459   |   |         |   | 1,288 |   |
|                        |   | $                       | 18,827  |   |         | $      | 21,725 |   |

----

|                                               |   | For the Quarters Ended  |   |
|----------------------------------------------------|--------|-------------------------|--------|
|                                               |   | September 26, 2010 |   |   | September 27, 2009 |   |
| Determination of shares:                           |   |                    |   |   |   |   |
| Weighted average common shares outstanding         |   |                    | 20,057 |   |   |   | 20,686 |   |
| Assumed conversion of dilutive stock options       |   |                    | 322    |   |   |   | 0 |   |
| Diluted weighted average common shares outstanding |   |                    | 20,379 |   |   |   | 20,686 |   |
|                                               |   |                    |   |   |   |   |   |   |
| Income per common share – basic              |   | $                       | .51    |   |   | $ | .12 |   |
| Income per common share – diluted            |   | $                       | .50    |   |   | $ | .12 |   |

|          | For the Quarters Ended  |   |
|---------------|-------------------------|--------|
|          | September 26, 2010 |   | September 27, 2009 |   |
|          |                    |   |   |   |
| Stock options |                    |   | 231 |   |   |   | 1,304 |   |

----

|                              |   | Polyester |    |   | Nylon  |   |   | Total  |   |
|-----------------------------------|--------|-----------|---------|--------|--------|--------|--------|--------|--------|
| Quarter ended September 26, 2010: |   |      |    |   |   |   |   |   |   |
| Net sales to external customers   |   | $         | 129,855 |   |   | $      | 44,165 |   |   | $ | 174,020 |   |
| Depreciation and amortization     |   |      | 5,632   |   |   |   | 854    |   |   |   | 6,486 |   |
| Segment operating profit          |   |      | 5,750   |   |   |   | 3,923  |   |   |   | 9,673 |   |
| Total assets                      |   |      | 325,733 |   |   |   | 86,548 |   |   |   | 412,281 |   |
|                              |   |      |    |   |   |   |   |   |   |   |   |   |
| Quarter ended September 27, 2009: |   |      |    |   |   |   |   |   |   |   |   |   |
| Net sales to external customers   |   | $         | 104,460 |   |   | $      | 38,391 |   |   | $ | 142,851 |   |
| Depreciation and amortization     |   |      | 5,768   |   |   |   | 893    |   |   |   | 6,661 |   |
| Segment operating profit          |   |      | 4,871   |   |   |   | 3,271  |   |   |   | 8,142 |   |
| Total assets                      |   |      | 325,162 |   |   |   | 78,761 |   |   |   | 403,923 |   |

|                                                                                                 |   | For the Quarters Ended |   |
|------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                 |   | September 26,          |   |   | September 27, |   |
|                                                                                                 |   | 2010                   |   |   | 2009 |   |
| Depreciation and amortization:                                                                       |   |                   |   |   |   |   |
| Depreciation and amortization of specific reportable segment assets                                  |   | $                      | 6,486  |   |   | $ | 6,661 |   |
| Depreciation included in other operating (income) expense, net                                       |   |                   | 3      |   |   |   | 36 |   |
| Amortization included in interest expense, net                                                       |   |                   | 254    |   |   |   | 276 |   |
| Consolidated depreciation and amortization                                                           |   | $                      | 6,743  |   |   | $ | 6,973 |   |
|                                                                                                 |   |                   |   |   |   |   |   |   |
| Reconciliation of segment operating income to income from  operations before income taxes: |   |                   |   |   |   |   |   |   |
| Reportable segments operating income                                                                 |   | $                      | 9,673  |   |   | $ | 8,142 |   |
| (Benefit) provision for bad debts                                                                    |   |                   | (41    | ) |   |   | 576 |   |
| Other operating expense (income), net                                                                |   |                   | 243    |   |   |   | (87 | ) |
| Interest expense, net                                                                                |   |                   | 4,526  |   |   |   | 4,746 |   |
| Loss (gain) on extinguishment of debt                                                                |   |                   | 1,144  |   |   |   | (54 | ) |
| Equity in earnings of unconsolidated affiliates                                                      |   |                   | (8,951 | ) |   |   | (2,063 | ) |
| Income from operations before income taxes                                                           |   | $                      | 12,752 |   |   | $ | 5,024 |   |

----

|                                  |   | For the Quarters Ended  |   |
|---------------------------------------|--------|-------------------------|--------|
|                                  |   | September 26, 2010 |   |   | September 27,2009 |   |
| Net gain on sale of PP&E          |   | $                       | (65    | ) |   | $ | (94 | ) |
| Currency losses                       |   |                    | 364    |   |   |   | 13 |   |
| Other, net                            |   |                    | (56    | ) |   |   | (6 | ) |
| Other operating expense (income), net |   | $                       | 243    |   |   | $ | (87 | ) |

----

|   ●   | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date, |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | September 26, 2010 |   |   | June 27,2010 |   |
|--------------------------------------|--------|-------------------------|--------|--------|--------------|--------|
|                                 |   | Level 2                 |   |   | Level 2      |   |
| Foreign currency purchase contracts: |   |                    |   |   |         |   |
| Notional amount                      |   | $                       | 3,328  |   |         | $      | 2,826 |   |
| Fair value                           |   |                    | 3,510  |   |         |   | 2,873 |   |
| Net gain                             |   | $                       | (182   | )      |         | $      | (47 | ) |
|                                 |   |                    |   |   |         |   |   |   |
| Foreign currency sales contracts:    |   |                    |   |   |         |   |   |   |
| Notional amount                      |   | $                       | 1,115  |   |         | $      | 1,231 |   |
| Fair value                           |   |                    | 1,141  |   |         |   | 1,217 |   |
| Net (loss) gain                      |   | $                       | (26    | )      |         | $      | 14 |   |

----

|                      |   | September 26, 2010 |    |       | June 27, 2010 |   |
|---------------------------|--------|--------------------|---------|------------|---------------|--------|
|                      |   | Carrying Value     |    | Fair Value |          |   | Carrying Value |   |   | Fair Value |   |
| Assets:                   |   |               |    |       |          |   |   |   |   |   |   |   |
| Cash and cash equivalents |   | $                  | 26,274  |       |          | $      | 26,274 |   |   | $ | 42,691 |   |   | $ | 42,691 |   |
| Receivables, net          |   |               | 95,404  |       |          |   | 95,404 |   |   |   | 91,243 |   |   |   | 91,243 |   |
| Liabilities:              |   |               |    |       |          |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable          |   |               | 45,093  |       |          |   | 45,093 |   |   |   | 40,662 |   |   |   | 40,662 |   |
| Notes payable             |   |               | 163,722 |       |          |   | 167,815 |   |   |   | 178,722 |   |   |   | 184,084 |   |

----

----

|                                                               |   | Parent |    |   | Guarantor Subsidiaries |   |     | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |     |
|--------------------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|----------|----------------------------|--------|--------|--------------|--------|--------|--------------|----------|
|     ASSETS                                     |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Current assets:                                                    |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Cash and cash equivalents                                          |   | $      | 175     |   |                   | $      | (39      | )                          |   | $      | 26,138       |   |   | $            | —  |   |   | $ | 26,274 |   |
| Receivables, net                                                   |   |   | — |   |                   |   | 64,820   |                       |   |   | 30,584       |   |   |         | —  |   |   |   | 95,404 |   |
| Intercompany accounts receivable                                   |   |   | 348,005 |   |                   |   | (338,440 | )                          |   |   | 840          |   |   |         | (10,405  | ) |   |   | — |   |
| Inventories                                                        |   |   | — |   |                   |   | 78,911   |                       |   |   | 41,499       |   |   |         | —  |   |   |   | 120,410 |   |
| Deferred income taxes                                              |   |   | — |   |                   |   | —  |                       |   |   | 1,647        |   |   |         | —  |   |   |   | 1,647 |   |
| Other current assets                                               |   |   | 107     |   |                   |   | 4,819    |                       |   |   | 4,539        |   |   |         | —  |   |   |   | 9,465 |   |
| Total current assets                                               |   |   | 348,287 |   |                   |   | (189,929 | )                          |   |   | 105,247      |   |   |         | (10,405  | ) |   |   | 253,200 |   |
|                                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Property, plant and equipment                                      |   |   | 11,348  |   |                   |   | 644,366  |                       |   |   | 101,355      |   |   |         | —  |   |   |   | 757,069 |   |
| Less accumulated depreciation                                      |   |   | (2,257  | )      |                   |   | (526,059 | )                          |   |   | (76,416      | )      |   |         | —  |   |   |   | (604,732 | ) |
|                                                               |   |   | 9,091   |   |                   |   | 118,307  |                       |   |   | 24,939       |   |   |         | —  |   |   |   | 152,337 |   |
|                                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Intangible assets, net                                             |   |   | — |   |                   |   | 13,496   |                       |   |   | —      |   |   |         | —  |   |   |   | 13,496 |   |
| Investments in unconsolidated affiliates                           |   |   | — |   |                   |   | 71,547   |                       |   |   | 8,947        |   |   |         | —  |   |   |   | 80,494 |   |
| Investments in consolidated subsidiaries                           |   |   | 425,641 |   |                   |   | —  |                       |   |   | —      |   |   |         | (425,641 | ) |   |   | — |   |
| Other non-current assets                                           |   |   | 7,485   |   |                   |   | (242     | )                          |   |   | 12,676       |   |   |         | (10,124  | ) |   |   | 9,795 |   |
|                                                               |   | $      | 790,504 |   |                   | $      | 13,179   |                       |   | $      | 151,809      |   |   | $            | (446,170 | ) |   | $ | 509,322 |   |
|                                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
|     LIABILITIES AND SHAREHOLDERS’ EQUITY |   |
| Current liabilities:                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Accounts payable                                                   |   | $      | 300     |   |                   | $      | 36,778   |                       |   | $      | 8,015        |   |   | $            | —  |   |   | $ | 45,093 |   |
| Intercompany accounts payable                                      |   |   | 341,028 |   |                   |   | (340,398 | )                          |   |   | 9,775        |   |   |         | (10,405  | ) |   |   | — |   |
| Accrued expenses                                                   |   |   | 7,235   |   |                   |   | 8,550    |                       |   |   | 3,042        |   |   |         | —  |   |   |   | 18,827 |   |
| Income taxes payable                                               |   |   | 1,189   |   |                   |   | (44      | )                          |   |   | 223          |   |   |         | —  |   |   |   | 1,368 |   |
| Current maturities of long-term debt and other liabilities         |   |   | — |   |                   |   | 327      |                       |   |   | —      |   |   |         | —  |   |   |   | 327 |   |
| Total current liabilities                                          |   |   | 349,752 |   |                   |   | (294,787 | )                          |   |   | 21,055       |   |   |         | (10,405  | ) |   |   | 65,615 |   |
|                                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Notes payable                                                      |   |   | 163,722 |   |                   |   | —  |                       |   |   | —      |   |   |         | —  |   |   |   | 163,722 |   |
| Long-term debt and other liabilities                               |   |   | — |   |                   |   | 2,700    |                       |   |   | —      |   |   |         | —  |   |   |   | 2,700 |   |
| Deferred income taxes                                              |   |   | — |   |                   |   | —  |                       |   |   | 255          |   |   |         | —  |   |   |   | 255 |   |
| Shareholders’/ invested equity                               |   |   | 277,030 |   |                   |   | 305,266  |                       |   |   | 130,499      |   |   |         | (435,765 | ) |   |   | 277,030 |   |
|                                                               |   | $      | 790,504 |   |                   | $      | 13,179   |                       |   | $      | 151,809      |   |   | $            | (446,170 | ) |   | $ | 509,322 |   |

----

|                                                               |   | Parent |    |   | Guarantor Subsidiaries |   |     | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |     |
|--------------------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|----------|----------------------------|--------|--------|--------------|--------|--------|--------------|----------|
|    ASSETS                                           |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |
| Current assets:                                                    |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |
| Cash and cash equivalents                                          |   | $      | 9,938   |   |                   | $      | 1,832    |                       |   | $      | 30,921       |   |   | $            | —  |   |   | $ | 42,691 |   |
| Receivables, net                                                   |   |   | — |   |                   |   | 67,979   |                       |   |   | 23,264       |   |   |         | —  |   |   |   | 91,243 |   |
| Intercompany accounts receivable                                   |   |   | 221,670 |   |                   |   | (209,991 | )                          |   |   | 720          |   |   |         | (12,399  | ) |   |   | — |   |
| Inventories                                                        |   |   | — |   |                   |   | 69,930   |                       |   |   | 41,077       |   |   |         | —  |   |   |   | 111,007 |   |
| Deferred income taxes                                              |   |   | — |   |                   |   | —  |                       |   |   | 1,623        |   |   |         | —  |   |   |   | 1,623 |   |
| Other current assets                                               |   |   | 79      |   |                   |   | 1,052    |                       |   |   | 4,988        |   |   |         | —  |   |   |   | 6,119 |   |
| Total current assets                                               |   |   | 231,687 |   |                   |   | (69,198  | )                          |   |   | 102,593      |   |   |         | (12,399  | ) |   |   | 252,683 |   |
|                                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Property, plant and equipment                                      |   |   | 11,348  |   |                   |   | 643,930  |                       |   |   | 92,579       |   |   |         | —  |   |   |   | 747,857 |   |
| Less accumulated depreciation                                      |   |   | (2,185  | )      |                   |   | (523,771 | )                          |   |   | (70,402      | )      |   |         | —  |   |   |   | (596,358 | ) |
|                                                               |   |   | 9,163   |   |                   |   | 120,159  |                       |   |   | 22,177       |   |   |         | —  |   |   |   | 151,499 |   |
|                                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Intangible assets, net                                             |   |   | — |   |                   |   | 14,135   |                       |   |   | —      |   |   |         | —  |   |   |   | 14,135 |   |
| Investments in unconsolidated affiliates                           |   |   | — |   |                   |   | 65,446   |                       |   |   | 8,097        |   |   |         | —  |   |   |   | 73,543 |   |
| Investments in consolidated subsidiaries                           |   |   | 407,605 |   |                   |   | —  |                       |   |   | —      |   |   |         | (407,605 | ) |   |   | — |   |
| Other non-current assets                                           |   |   | 7,200   |   |                   |   | 2,999    |                       |   |   | 7,446        |   |   |         | (5,040   | ) |   |   | 12,605 |   |
|                                                               |   | $      | 655,655 |   |                   | $      | 133,541  |                       |   | $      | 140,313      |   |   | $            | (425,044 | ) |   | $ | 504,465 |   |
|                                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
|     LIABILITIES AND SHAREHOLDERS’ EQUITY |   |
| Current liabilities:                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Accounts payable                                                   |   | $      | 218     |   |                   | $      | 33,158   |                       |   | $      | 7,286        |   |   | $            | —  |   |   | $ | 40,662 |   |
| Intercompany accounts payable                                      |   |   | 214,087 |   |                   |   | (213,457 | )                          |   |   | 11,769       |   |   |         | (12,399  | ) |   |   | — |   |
| Accrued expenses                                                   |   |   | 2,732   |   |                   |   | 15,699   |                       |   |   | 3,294        |   |   |         | —  |   |   |   | 21,725 |   |
| Income taxes payable                                               |   |   | — |   |                   |   | (44      | )                          |   |   | 549          |   |   |         | —  |   |   |   | 505 |   |
| Current portion of notes payable                                   |   |   | 15,000  |   |                   |   | —  |                       |   |   | —      |   |   |         | —  |   |   |   | 15,000 |   |
| Current maturities of long-term debt and other liabilities         |   |   | — |   |                   |   | 327      |                       |   |   | —      |   |   |         | —  |   |   |   | 327 |   |
| Total current liabilities                                          |   |   | 232,037 |   |                   |   | (164,317 | )                          |   |   | 22,898       |   |   |         | (12,399  | ) |   |   | 78,219 |   |
|                                                               |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Notes payable, less current portion                                |   |   | 163,722 |   |                   |   | —  |                       |   |   | —      |   |   |         | —  |   |   |   | 163,722 |   |
| Long-term debt and other liabilities                               |   |   | — |   |                   |   | 2,531    |                       |   |   | 5,040        |   |   |         | (5,040   | ) |   |   | 2,531 |   |
| Deferred income taxes                                              |   |   | — |   |                   |   | —  |                       |   |   | 97           |   |   |         | —  |   |   |   | 97 |   |
| Shareholders’/ invested equity                               |   |   | 259,896 |   |                   |   | 295,327  |                       |   |   | 112,278      |   |   |         | (407,605 | ) |   |   | 259,896 |   |
|                                                               |   | $      | 655,655 |   |                   | $      | 133,541  |                       |   | $      | 140,313      |   |   | $            | (425,044 | ) |   | $ | 504,465 |   |

----

|                                                     |   | Parent |    |   | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|----------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Summary of Operations:                                   |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |
| Net sales                                                |   | $      | — |   |                   | $      | 121,220 |                       |   | $      | 53,198       |   |   | $            | (398    | ) |   | $ | 174,020 |   |
| Cost of sales                                            |   |   | — |   |                   |   | 106,707 |                       |   |   | 46,623       |   |   |         | (473    | ) |   |   | 152,857 |   |
| Restructuring charges                                    |   |   | — |   |                   |   | 363     |                       |   |   | —      |   |   |         | — |   |   |   | 363 |   |
| Equity in subsidiaries                                   |   |   | (11,328 | )      |                   |   | — |                       |   |   | —      |   |   |         | 11,328  |   |   |   | — |   |
| Selling, general and administrative expenses             |   |   | — |   |                   |   | 8,016   |                       |   |   | 3,111        |   |   |         | — |   |   |   | 11,127 |   |
| (Benefit) provision for bad debts                        |   |   | — |   |                   |   | (292    | )                          |   |   | 251          |   |   |         | — |   |   |   | (41 | ) |
| Other operating (income) expense, net                    |   |   | (6,404  | )      |                   |   | 5,171   |                       |   |   | 550          |   |   |         | 926     |   |   |   | 243 |   |
|                                                     |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Non-operating (income) expenses:                         |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Interest income                                          |   |   | — |   |                   |   | (66     | )                          |   |   | (677         | )      |   |         | — |   |   |   | (743 | ) |
| Interest expense                                         |   |   | 5,156   |   |                   |   | 17      |                       |   |   | 96           |   |   |         | — |   |   |   | 5,269 |   |
| Loss on extinguishment of debt                           |   |   | 1,144   |   |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | 1,144 |   |
| Equity in (earnings) losses of unconsolidated affiliates |   |   | — |   |                   |   | (8,634  | )                          |   |   | (594         | )      |   |         | 277     |   |   |   | (8,951 | ) |
| Income (loss) from operations before income taxes        |   |   | 11,432  |   |                   |   | 9,938   |                       |   |   | 3,838        |   |   |         | (12,456 | ) |   |   | 12,752 |   |
| Provision for income taxes                               |   |   | 1,197   |   |                   |   | — |                       |   |   | 1,320        |   |   |         | — |   |   |   | 2,517 |   |
| Net income (loss)                                        |   | $      | 10,235  |   |                   | $      | 9,938   |                       |   | $      | 2,518        |   |   | $            | (12,456 | ) |   | $ | 10,235 |   |

----

|                                                     |   | Parent |    |   | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|----------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Summary of Operations:                                   |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |
| Net sales                                                |   | $      | — |   |                   | $      | 104,547 |                       |   | $      | 38,358       |   |   | $            | (54     | ) |   | $ | 142,851 |   |
| Cost of sales                                            |   |   | — |   |                   |   | 93,783  |                       |   |   | 29,630       |   |   |         | 32      |   |   |   | 123,445 |   |
| Write down of long-lived assets                          |   |   | — |   |                   |   | 100     |                       |   |   | —      |   |   |         | — |   |   |   | 100 |   |
| Equity in subsidiaries                                   |   |   | (2,356  | )      |                   |   | — |                       |   |   | —      |   |   |         | 2,356   |   |   |   | — |   |
| Selling, general and administrative expenses             |   |   | (10     | )      |                   |   | 8,891   |                       |   |   | 2,337        |   |   |         | (54     | ) |   |   | 11,164 |   |
| Provision for bad debts                                  |   |   | — |   |                   |   | 481     |                       |   |   | 95           |   |   |         | — |   |   |   | 576 |   |
| Other operating (income) expense, net                    |   |   | (5,474  | )      |                   |   | 5,517   |                       |   |   | (130         | )      |   |         | — |   |   |   | (87 | ) |
|                                                     |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Non-operating (income) expenses:                         |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Interest income                                          |   |   | (62     | )      |                   |   | — |                       |   |   | (684         | )      |   |         | — |   |   |   | (746 | ) |
| Interest expense                                         |   |   | 5,467   |   |                   |   | 25      |                       |   |   | —      |   |   |         | — |   |   |   | 5,492 |   |
| Gain on extinguishment of debt                           |   |   | (54     | )      |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | (54 | ) |
| Equity in (earnings) losses of unconsolidated affiliates |   |   | — |   |                   |   | (2,352  | )                          |   |   | (177         | )      |   |         | 466     |   |   |   | (2,063 | ) |
| Income (loss) from operations before income taxes        |   |   | 2,489   |   |                   |   | (1,898  | )                          |   |   | 7,287        |   |   |         | (2,854  | ) |   |   | 5,024 |   |
| Provision for income taxes                               |   |   | — |   |                   |   | — |                       |   |   | 2,535        |   |   |         | — |   |   |   | 2,535 |   |
| Net income (loss)                                        |   | $      | 2,489   |   |                   | $      | (1,898  | )                          |   | $      | 4,752        |   |   | $            | (2,854  | ) |   | $ | 2,489 |   |

----

|                                                         |   | Parent |    |   | GuarantorSubsidiaries |   |    | Non-GuarantorSubsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|--------------------------------------------------------------|--------|--------|---------|--------|-----------------------|--------|---------|---------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Operating activities:                                        |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |
| Net cash provided by (used in) operating activities          |   | $      | 6,921   |   |                  | $      | 1,149   |                      |   | $      | (4,380       | )      |   | $            | 321     |   |   | $ | 4,011 |   |
|                                                         |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Investing activities:                                        |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Capital expenditures                                         |   |   | — |   |                  |   | (3,020  | )                         |   |   | (2,475       | )      |   |         | — |   |   |   | (5,495 | ) |
| Investment in unconsolidated affiliate                       |   |   | — |   |                  |   | — |                      |   |   | (225         | )      |   |         | — |   |   |   | (225 | ) |
| Proceeds from sale of capital assets                         |   |   | — |   |                  |   | — |                      |   |   | 180          |   |   |         | — |   |   |   | 180 |   |
| Net cash used in investing activities                        |   |   | — |   |                  |   | (3,020  | )                         |   |   | (2,520       | )      |   |         | — |   |   |   | (5,540 | ) |
|                                                         |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Financing activities:                                        |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Payments of notes payable                                    |   |   | (15,863 | )      |                  |   | — |                      |   |   | —      |   |   |         | — |   |   |   | (15,863 | ) |
| Payments of long-term debt                                   |   |   | (40,525 | )      |                  |   | — |                      |   |   | —      |   |   |         | — |   |   |   | (40,525 | ) |
| Borrowings of long-term debt                                 |   |   | 40,525  |   |                  |   | — |                      |   |   | —      |   |   |         | — |   |   |   | 40,525 |   |
| Debt refinancing fees                                        |   |   | (821    | )      |                  |   | — |                      |   |   | —      |   |   |         | — |   |   |   | (821 | ) |
| Net cash used in  financing activities             |   |   | (16,684 | )      |                  |   | — |                      |   |   | —      |   |   |         | — |   |   |   | (16,684 | ) |
|                                                         |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents |   |   | — |   |                  |   | — |                      |   |   | 2,117        |   |   |         | (321    | ) |   |   | 1,796 |   |
|                                                         |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Net increase in cash and cash equivalents                    |   |   | (9,763  | )      |                  |   | (1,871  | )                         |   |   | (4,783       | )      |   |         | — |   |   |   | (16,417 | ) |
| Cash and cash equivalents at beginning of period             |   |   | 9,938   |   |                  |   | 1,832   |                      |   |   | 30,921       |   |   |         | — |   |   |   | 42,691 |   |
| Cash and cash equivalents at end of period                   |   | $      | 175     |   |                  | $      | (39     | )                         |   | $      | 26,138       |   |   | $            | — |   |   | $ | 26,274 |   |

----

|                                                         |   | Parent |    |   | GuarantorSubsidiaries |   |    | Non-GuarantorSubsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|--------------------------------------------------------------|--------|--------|---------|--------|-----------------------|--------|---------|---------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Operating activities:                                        |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |
| Net cash provided by (used in) operating activities          |   | $      | 5,758   |   |                  | $      | 2,460   |                      |   | $      | 5,050        |   |   | $            | (46     | ) |   | $ | 13,222 |   |
|                                                         |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Investing activities:                                        |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Capital expenditures                                         |   |   | (12     | )      |                  |   | (1,734  | )                         |   |   | (360         | )      |   |         | — |   |   |   | (2,106 | ) |
| Change in restricted cash                                    |   |   | — |   |                  |   | — |                      |   |   | 1,763        |   |   |         | — |   |   |   | 1,763 |   |
| Proceeds from sale of capital assets                         |   |   | — |   |                  |   | 1       |                      |   |   | 106          |   |   |         | — |   |   |   | 107 |   |
| Net cash provided by (used in) investing activities          |   |   | (12     | )      |                  |   | (1,733  | )                         |   |   | 1,509        |   |   |         | — |   |   |   | (236 | ) |
|                                                         |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Financing activities:                                        |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Payments of long-term debt                                   |   |   | (435    | )      |                  |   | — |                      |   |   | (1,763       | )      |   |         | — |   |   |   | (2,198 | ) |
| Net cash used in  financing activities             |   |   | (435    | )      |                  |   | — |                      |   |   | (1,763       | )      |   |         | — |   |   |   | (2,198 | ) |
|                                                         |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents |   |   | — |   |                  |   | — |                      |   |   | 2,207        |   |   |         | 46      |   |   |   | 2,253 |   |
|                                                         |   |   |    |   |                  |   |    |                      |   |   |         |   |   |         |    |   |   |   |   |   |
| Net increase in cash and cash equivalents                    |   |   | 5,311   |   |                  |   | 727     |                      |   |   | 7,003        |   |   |         | — |   |   |   | 13,041 |   |
| Cash and cash equivalents at beginning of period             |   |   | 11,509  |   |                  |   | (812    | )                         |   |   | 31,962       |   |   |         | — |   |   |   | 42,659 |   |
| Cash and cash equivalents at end of period                   |   | $      | 16,820  |   |                  | $      | (85     | )                         |   | $      | 38,965       |   |   | $            | — |   |   | $ | 55,700 |   |

----

----

----

| ●   | sales volume, which is an indicator of demand; |
|---------------------|------------------------------------------------|

| ●   | gross margin, which is an indicator of product mix and profitability; |
|---------------------|-----------------------------------------------------------------------|

| ●   | adjusted EBITDA, which the Company defines as net income or loss before income tax expense (benefit), net interest expense, and depreciation and amortization expense, adjusted to exclude equity in earnings and losses of unconsolidated affiliates, write down of long-lived assets, non-cash compensation expense net of distributions, gains or losses on sales or disposals of property, plant and equipment (“PP&E”), currency and derivative gains or losses, gains or losses on extinguishment of debt, restructuring charges, and foreign subsidiary startup costs, as revised from time to time, which the Company believes is a supplemental measure of its operating performance and debt service capacity; and |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | adjusted working capital (accounts receivable plus inventory less accounts payable and accruals) as a percentage of sales, which is an indicator of the Company’s production efficiency and ability to manage its inventory and receivables. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                      |   | September 26, 2010 |    |   | September 27,2009 |   |
|---------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------|--------|
|                                                                      |   | (Amounts in thousands)  |    |
| Net sales                                                                 |   | $                       | 174,020 |   |              | $      | 142,851 |   |
| Cost of sales                                                             |   |                    | 152,857 |   |              |   | 123,445 |   |
| Other operating expenses, net                                             |   |                    | 11,692  |   |              |   | 11,753 |   |
| Non-operating (income) expenses, net                                      |   |                    | (3,281  | )      |              |   | 2,629 |   |
| Income from operations before income taxes  |   |                    | 12,752  |   |              |   | 5,024 |   |
| Provision for income taxes                                                |   |                    | 2,517   |   |              |   | 2,535 |   |
| Net income                                                                |   | $                       | 10,235  |   |              | $      | 2,489 |   |

|                                                |   | September 26, 2010 |    |   | September 27, 2009 |   |
|-----------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|                                                |   | (Amounts in thousands)  |    |
| Net income                                          |   | $                       | 10,235  |   |                    | $      | 2,489 |   |
| Interest expense, net                               |   |                    | 4,526   |   |                    |   | 4,746 |   |
| Depreciation and amortization expense               |   |                    | 6,489   |   |                    |   | 6,696 |   |
| Provision for income taxes                          |   |                    | 2,517   |   |                    |   | 2,535 |   |
| Equity in earnings of unconsolidated affiliates     |   |                    | (8,951  | )      |                    |   | (2,063 | ) |
| Non-cash compensation expense, net of distributions |   |                    | 347     |   |                    |   | 770 |   |
| Gain on sales or disposals of PP&E              |   |                    | (65     | )      |                    |   | (94 | ) |
| Currency and derivative losses                      |   |                    | 364     |   |                    |   | 13 |   |
| Write down of long-lived assets                     |   |                    | ― |   |                    |   | 100 |   |
| Loss (gain) on extinguishment of debt               |   |                    | 1,144   |   |                    |   | (54 | ) |
| Restructuring charges                               |   |                    | 363     |   |                    |   | ― |   |
| Foreign subsidiary startup costs (a)                |   |                    | 1,463   |   |                    |   | ― |   |
| Adjusted EBITDA                                     |   | $                       | 18,432  |   |                    | $      | 15,138 |   |

| (a)   | Initial UCA operating expenses incurred during fiscal year 2011 related to pre-operating expenses including the hiring and training of new employees and the costs of operating personnel to initiate the new operations. Start-up expenses also include losses incurred in the period subsequent to when UCA assets became available for use but prior to the achievement of a reasonable level of production. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Affiliate Name                         | Date Acquired |  Locations                                       | Percent Ownership |
|----------------------------------------------|---------------|-------------------------------------------------------|-------------------|
| Parkdale America, LLC                        | Jun-97        | North Carolina, South Carolina, Virginia, and Georgia | 34%               |
|                                         |          |                                                  |              |
| U.N.F. Industries, LLC (“UNF”)   | Sep-00        | Migdal Ha – Emek, Israel                        | 50%               |
|                                         |          |                                                  |              |
| UNF America, LLC (“UNF America”) | Oct-09        | Ridgeway, Virginia                                    | 50%               |
|                                         |          |                                                  |              |
| Repreve Renewables, LLC                      | Apr-10        | Soperton, Georgia                                     | 40%               |

|                                            |   | September 26, 2010 |    |
|-------------------------------------------------|--------|--------------------|---------|
|                                            |   | (Unaudited)        |    |
|                                            |   | PAL                |    |   | Other |   |   | Total |   |
|                                            |   |               |    |   |   |   |   |   |   |
| Current assets                                  |   | $                  | 197,708 |   |   | $ | 14,422 |   |   | $ | 212,130 |   |
| Non-current assets                              |   |               | 149,016 |   |   |   | 6,366 |   |   |   | 155,382 |   |
| Current liabilities                             |   |               | 52,089  |   |   |   | 5,552 |   |   |   | 57,641 |   |
| Non-current liabilities                         |   |               | 31,879  |   |   |   | 2,000 |   |   |   | 33,879 |   |
| Shareholders’ equity and capital accounts |   |               | 262,756 |   |   |   | 13,236 |   |   |   | 275,992 |   |

|                                            |   | June 27, 2010 |    |
|-------------------------------------------------|--------|---------------|---------|
|                                            |   | (Unaudited)   |    |
|                                            |   | PAL           |    |   | Other |   |   | Total |   |
|                                            |   |          |    |   |   |   |   |   |   |
| Current assets                                  |   | $             | 198,958 |   |   | $ | 12,262 |   |   | $ | 211,220 |   |
| Non-current assets                              |   |          | 120,380 |   |   |   | 6,701 |   |   |   | 127,081 |   |
| Current liabilities                             |   |          | 48,220  |   |   |   | 5,238 |   |   |   | 53,458 |   |
| Non-current liabilities                         |   |          | 25,621  |   |   |   | 2,000 |   |   |   | 27,621 |   |
| Shareholders’ equity and capital accounts |   |          | 245,497 |   |   |   | 11,725 |   |   |   | 257,222 |   |

|                          |   | For the Quarter Ended September 26, 2010 |    |
|-------------------------------|--------|------------------------------------------|---------|
|                          |   | (Unaudited)                              |    |
|                          |   | PAL                                      |    |   | Other |   |   | Total |   |
|                          |   |                                     |    |   |   |   |   |   |   |
| Net sales                     |   | $                                        | 209,801 |   |   | $ | 11,576 |   |   | $ | 221,377 |   |
| Gross profit                  |   |                                     | 27,092  |   |   |   | 2,007 |   |   |   | 29,099 |   |
| Depreciation and amortization |   |                                     | 6,523   |   |   |   | 342 |   |   |   | 6,865 |   |
| Income from operations        |   |                                     | 23,910  |   |   |   | 1,262 |   |   |   | 25,172 |   |
| Net income                    |   |                                     | 25,393  |   |   |   | 986 |   |   |   | 26,379 |   |

|                          |   | For the Quarter Ended September 27, 2009 |   |
|-------------------------------|--------|------------------------------------------|--------|
|                          |   | (Unaudited)                              |   |
|                          |   | PAL                                      |   |   | Other |   |   | Total |   |
|                          |   |                                     |   |   |   |   |   |   |   |
| Net sales                     |   | $                                        | 94,870 |   |   | $ | 4,576 |   |   | $ | 99,446 |   |
| Gross profit                  |   |                                     | 7,929  |   |   |   | 726 |   |   |   | 8,655 |   |
| Depreciation and amortization |   |                                     | 4,552  |   |   |   | 474 |   |   |   | 5,026 |   |
| Income from operations        |   |                                     | 5,017  |   |   |   | 394 |   |   |   | 5,411 |   |
| Net income                    |   |                                     | 7,163  |   |   |   | 355 |   |   |   | 7,518 |   |

----

----

----

|      |   | For the Quarters Ended  |    |                    |            |
|-----------|--------|-------------------------|---------|-------------------------|-----------------|
|      |   | September 26, 2010 |    | September 27, 2009 |            |   |   |
|      |   |                    |    |                    |            |   |   |   |   |   |   |   |   |
|      |   |                    |    |                    | % to Total |   |   |   |   | % to Total |   | % Change |   |
| Net sales |   |                    |    |                    |            |   |   |   |   |   |   |   |   |
| Polyester |   | $                       | 129,855 |                    | 74.6            |   | $ | 104,460 |   | 73.1 |   | 24.3 |   |
| Nylon     |   |                    | 44,165  |                    | 25.4            |   |   | 38,391 |   | 26.9 |   | 15.0 |   |
| Total     |   | $                       | 174,020 |                    | 100.0           |   | $ | 142,851 |   | 100.0 |   | 21.8 |   |
|      |   |                    |    |                    |            |   |   |   |   |   |   |   |   |

|                                         |   |   |    |   | % to Net Sales |   |   |    |   | % to Net Sales s |   |    |   |
|----------------------------------------------|--------|--------|---------|--------|---------------------|--------|--------|---------|--------|-----------------------|--------|---------|--------|
| Cost of sales                                |   |   |    |   |                |   |   |    |   |                  |   |    |   |
| Polyester                                    |   | $      | 114,810 |   | 66.0                |   | $      | 90,657  |   | 63.4                  |   | 26.6    |   |
| Nylon                                        |   |   | 38,047  |   | 21.8                |   |   | 32,788  |   | 23.0                  |   | 16.0    |   |
| Total                                        |   |   | 152,857 |   | 87.8                |   |   | 123,445 |   | 86.4                  |   | 23.8    |   |
|                                         |   |   |    |   |                |   |   |    |   |                  |   |    |   |
| Restructuring charges                        |   |   |    |   |                |   |   |    |   |                  |   |    |   |
| Polyester                                    |   |   | 363     |   | 0.2                 |   |   | ― |   | ―               |   | ― |   |
| Nylon                                        |   |   | ― |   | ―             |   |   | ― |   | ―               |   | ― |   |
| Total                                        |   |   | 363     |   | 0.2                 |   |   | ― |   | ―               |   | ― |   |
|                                         |   |   |    |   |                |   |   |    |   |                  |   |    |   |
| Write down of long-lived assets              |   |   |    |   |                |   |   |    |   |                  |   |    |   |
| Polyester                                    |   |   | ― |   | ―             |   |   | 100     |   | ―               |   | ― |   |
| Nylon                                        |   |   | ― |   | ―             |   |   | ― |   | ―               |   | ― |   |
| Total                                        |   |   | ― |   | ―             |   |   | 100     |   | ―               |   | ― |   |
|                                         |   |   |    |   |                |   |   |    |   |                  |   |    |   |
| Selling, general and administrative expenses |   |   |    |   |                |   |   |    |   |                  |   |    |   |
| Polyester                                    |   |   | 8,932   |   | 5.1                 |   |   | 8,832   |   | 6.2                   |   | 1.1     |   |
| Nylon                                        |   |   | 2,195   |   | 1.3                 |   |   | 2,332   |   | 1.6                   |   | (5.9)   |   |
| Total                                        |   |   | 11,127  |   | 6.4                 |   |   | 11,164  |   | 7.8                   |   | (0.3)   |   |
|                                         |   |   |    |   |                |   |   |    |   |                  |   |    |   |
| (Benefit) provision for bad debts            |   |   | (41)    |   | ―             |   |   | 576     |   | 0.4                   |   | (107.1) |   |
| Other operating expense (income), net        |   |   | 243     |   | 0.2                 |   |   | (87)    |   | ―               |   | (379.3) |   |
| Non-operating (income) expense, net          |   |   | (3,281) |   | (1.9)               |   |   | 2,629   |   | 1.9                   |   | (224.8) |   |
| Income from operations before income taxes   |   |   | 12,752  |   | 7.3                 |   |   | 5,024   |   | 3.5                   |   | 153.8   |   |
| Provision for income taxes                   |   |   | 2,517   |   | 1.4                 |   |   | 2,535   |   | 1.8                   |   | (0.7)   |   |
| Net income                                   |   | $      | 10,235  |   | 5.9                 |   | $      | 2,489   |   | 1.7                   |   | 311.2   |   |

----

|                                  |   | For the Quarters Ended  |   |
|---------------------------------------|--------|-------------------------|--------|
|                                  |   | September 26, 2010 |   |   | September 27, 2009 |   |
|                                  |   |                    |   |   |   |   |
| Net gain on sale of PP&E          |   | $                       | (65    | ) |   | $ | (94 | ) |
| Currency losses                       |   |                    | 364    |   |   |   | 13 |   |
| Other, net                            |   |                    | (56    | ) |   |   | (6 | ) |
| Other operating expense (income), net |   | $                       | 243    |   |   | $ | (87 | ) |

----

----

----

| ●   | Capital Expenditures.  During the first quarter of fiscal year 2011, the Company spent $5.5 million on capital expenditures compared to $2.1 million in the first quarter of the prior year.  The Company estimates its fiscal year 2011 capital expenditures will be approximately $20 million which includes $14 million of strategic capital expenditures focused on modernizing and improving current productivity levels of its plants and equipment.  In February 2010, the Board approved a plan to expand its production capabilities to include a new state-of-the art recycled chip facility in Yadkinville, North Carolina.  This backward integration of the recycle supply chain will provide opportunities for the Company to recycle both post-consumer and post-industrial waste back into its Repreve® products. This will allow the Company to improve the availability of recycled raw materials, and significantly increase product capabilities and competitiveness in this growing market segment. The Company expects this recycling project to be completed by the third quarter of fiscal year 2011.  The total investment in this capital project is expected to be approximately $8 million of which the Company had incurred $2.3 million as of September 26, 2010. The Company may incur additional capital expenditures as it pursues new opportunities to expand its production capabilities or to further streamline its manufacturing processes. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Joint Venture Investments.  During the first quarter of fiscal year 2011, the Company received $2.5 million in dividend distributions from its joint ventures.  Historically, the Company has received distributions from certain of its joint ventures every year; however there is no guarantee that the Company will continue to receive distributions in the future. The Company may strategically increase its interest in its joint ventures, sell its interest in its joint ventures, invest in new joint ventures or transfer idle equipment to its joint ventures. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Investment.  In the third quarter of fiscal year 2010, the Company established a wholly-owned subsidiary to provide a base of operations in El Salvador.  The total investment in UCA is expected to be approximately $16 million of which $10 million is related to intercompany funding of working capital and $3.2 million is intercompany sales of PP&E. UCA began selling U.S. manufactured products during the third quarter of fiscal year 2010 and expects to be fully operational by the end of December 2010. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                            |   | For the Quarters Ended  |   |
|-------------------------------------------------|--------|-------------------------|--------|
|                                            |   | September 26, 2010 |   |   | September 27, 2009 |   |
|                                            |   |                    |   |   |   |   |
| Cash provided by operations                     |   |                    |   |   |   |   |
| Cash receipts:                                  |   |                    |   |   |   |   |
| Receipts from customers                         |   | $                       | 171.0  |   |   | $ | 142.7 |   |
| Dividends from unconsolidated affiliates        |   |                    | 2.5    |   |   |   | 1.6 |   |
| Other receipts                                  |   |                    | 1.2    |   |   |   | 0.4 |   |
| Cash payments:                                  |   |                    |   |   |   |   |   |   |
| Payments to suppliers and other operating costs |   |                    | 139.2  |   |   |   | 101.8 |   |
| Payments for salaries, wages, and benefits      |   |                    | 28.8   |   |   |   | 26.8 |   |
| Payments for restructuring and severance        |   |                    | 0.7    |   |   |   | 0.4 |   |
| Payments for interest                           |   |                    | 0.5    |   |   |   | 0.1 |   |
| Payments for taxes                              |   |                    | 1.5    |   |   |   | 2.4 |   |
| Cash provided by operations                     |   | $                       | 4.0    |   |   | $ | 13.2 |   |

----

----

----

| ●   | the competitive nature of the textile industry and the impact of worldwide competition; |
|---------------------|-----------------------------------------------------------------------------------------|

----

| ●   | changes in the trade regulatory environment and governmental policies and legislation; |
|---------------------|----------------------------------------------------------------------------------------|

| ●   | the availability, sourcing and pricing of raw materials; |
|---------------------|----------------------------------------------------------|

| ●   | general domestic and international economic and industry conditions in markets where the Company competes, such as recession and other economic and political factors over which the Company has no control; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | changes in consumer spending, customer preferences, fashion trends and end-uses; |
|---------------------|----------------------------------------------------------------------------------|

| ●   | its ability to reduce production costs; |
|---------------------|-----------------------------------------|

| ●   | changes in currency exchange rates, interest and inflation rates; |
|---------------------|-------------------------------------------------------------------|

| ●   | the financial condition of its customers; |
|---------------------|-------------------------------------------|

| ●   | its ability to sell excess assets; |
|---------------------|------------------------------------|

| ●   | technological advancements and the continued availability of financial resources to fund capital expenditures; |
|---------------------|----------------------------------------------------------------------------------------------------------------|

| ●   | the operating performance of joint ventures, alliances and other equity investments; |
|---------------------|--------------------------------------------------------------------------------------|

| ●   | the impact of environmental, health and safety regulations; |
|---------------------|-------------------------------------------------------------|

| ●   | the loss of a material customer; |
|---------------------|----------------------------------|

| ●   | employee relations; |
|---------------------|---------------------|

| ●   | volatility of financial and credit markets; |
|---------------------|---------------------------------------------|

| ●   | the continuity of the Company’s leadership; |
|---------------------|---------------------------------------------------|

| ●   | availability of and access to credit on reasonable terms; and |
|---------------------|---------------------------------------------------------------|

| ●   | the success of the Company’s consolidation initiatives. |
|---------------------|---------------------------------------------------------------|

----

| ●   | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date, |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, or |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | September 26, 2010 |   |   | June 27,2010 |   |
|--------------------------------------|--------|-------------------------|--------|--------|--------------|--------|
|                                 |   | Level 2                 |   |   | Level 2      |   |
| Foreign currency purchase contracts: |   |                    |   |   |         |   |
| Notional amount                      |   | $                       | 3,328  |   |         | $      | 2,826 |   |
| Fair value                           |   |                    | 3,510  |   |         |   | 2,873 |   |
| Net gain                             |   | $                       | (182   | )      |         | $      | (47 | ) |
|                                 |   |                    |   |   |         |   |   |   |
| Foreign currency sales contracts:    |   |                    |   |   |         |   |   |   |
| Notional amount                      |   | $                       | 1,115  |   |         | $      | 1,231 |   |
| Fair value                           |   |                    | 1,141  |   |         |   | 1,217 |   |
| Net (loss) gain                      |   | $                       | (26    | )      |         | $      | 14 |   |

----

|                      |   | September 26, 2010 |    |       | June 27, 2010 |   |
|---------------------------|--------|--------------------|---------|------------|---------------|--------|
|                      |   | Carrying Value     |    | Fair Value |          |   | Carrying Value |   |   | Fair Value |   |
| Assets:                   |   |               |    |       |          |   |   |   |   |   |   |   |
| Cash and cash equivalents |   | $                  | 26,274  |       |          | $      | 26,274 |   |   | $ | 42,691 |   |   | $ | 42,691 |   |
| Receivables, net          |   |               | 95,404  |       |          |   | 95,404 |   |   |   | 91,243 |   |   |   | 91,243 |   |
| Liabilities:              |   |               |    |       |          |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable          |   |               | 45,093  |       |          |   | 45,093 |   |   |   | 40,662 |   |   |   | 40,662 |   |
| Notes payable             |   |               | 163,722 |       |          |   | 167,815 |   |   |   | 178,722 |   |   |   | 184,084 |   |

----

|   | (c)  The following table summarizes the Company’s repurchases of its common stock during the quarter ended September 26, 2010.  All share amounts have been retroactively adjusted to give effect to the 1-for-3 reverse stock split. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Period                  | Total Number of Shares Purchased |   | Average Price Paid per Share |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   | Maximum Number of Shares that may Yet  Be Purchased Under the Plans or Programs |
|-------------------------|---------------------------------------|--------|-----------------------------------|--------|---------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|
|                    |                                  |   |                              |   |                                                                                  |   |                                                                                           |
| 6/28/10 – 7/27/10 | —                               |   | —                           |   | —                                                                               |   | 2,269,080                                                                                      |
| 7/28/10 – 8/27/10 | —                               |   | —                           |   | —                                                                               |   | 2,269,080                                                                                      |
| 8/28/10 – 9/26/10 | —                               |   | —                           |   | —                                                                               |   | 2,269,080                                                                                      |
| Total                   | —                               |   | —                           |   | —                                                                               |   |                                                                                           |

| Exhibit Number | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1            | Certificate of Amendment to Restated Certificate of Incorporation of Unifi, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (Reg. No. 001-10542) dated November 3, 2010).                                                                                                                                                                                                                                                                            |
| 4.1            | First Amendment to Amended and Restated Credit Agreement, Amended and Restated Security Agreement and Pledge Agreement, dated as of September 9, 2010, among Unifi, Inc., the subsidiaries of Unifi, Inc. from time to time party to the agreement, each lender from time to time party to the agreement and Bank of America N.A. as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (Reg. No. 001-10542) dated September 9, 2010). |
| 31.1           | Chief Executive Officer’s certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.2           | Chief Financial Officer’s certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.1           | Chief Executive Officer’s certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.2           | Chief Financial Officer’s certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                              |

----

----

|                              | UNIFI, INC. |                                                                                                           |
|-----------------------------------|-------------|----------------------------------------------------------------------------------------------------------------|
|                              |        |                                                                                                           |
|                              |        |                                                                                                           |
|                              |        |                                                                                                           |
|                              |        |                                                                                                           |
|                              |        |                                                                                                           |   |
| Date:  November 5, 2010 | By:         | /s/ RONALD L. SMITH                                                                                       |   |
|                              |        | Ronald L. Smith                                                                                                |   |
|                              |        | Vice President and Chief Financial Officer                                                                     |   |
|                              |        | (Principal Financial Officer and Principal Accounting Officer and Duly Authorized Officer) |   |