FYTEK, S.A. DE C.V.
                      (a Mexican corporation)

                       FINANCIAL STATEMENTS
                    DECEMBER 31, 2000 AND 1999

                             CONTENTS
                                             Page

Report of independent accountants             1 & 2

Financial statements:
Balance sheets                                    3
Statements of income                              4
Statements of changes in stockholders' equity     5
Statements of cash flows                          6

Notes to financial statements                  7-13
---------------------------------------------------

REPORT OF INDEPENDENT ACCOUNTANTS

Monterrey, N. L., February 26, 2001


To the Stockholders of Fytek, S. A. de C. V.

1. We have audited the  accompanying  balance sheets of Fytek, S. A. de C. V. as
of December 31, 2000 and 1999, and the related  statements of income, of changes
in stockholders' equity and cash flows for the years then ended. These financial
statements   are  the   responsibility   of  the   Company's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

2. We conducted  our audits in  accordance  with  auditing  standards  generally
accepted in the United States of America.  Those standards  require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements  are free of  material  misstatement  and that they were  prepared in
accordance  with generally  accepted  accounting  principles.  An audit includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial  statements.  An audit also  includes  assessing  the  accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.

3. In our opinion,  the aforementioned  financial  statements present fairly, in
all  material  respects,  the  financial  position  of Fytek,  S. A. de C. V. at
December 31, 2000 and 1999,  and the results of its  operations,  the changes in
its  stockholders'  equity  and its cash  flows for the  years  then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.

Page 1 of EX-99
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REPORT OF INDEPENDENT ACCOUNTANTS (continued)

4. As  more  fully  described  in Note 1 to the  financial  statements,  through
December  31,  1998,  Mexico  had  a  highly  inflationary  economy.  Accounting
principles  generally  accepted  in the United  States of America  require  that
financial  statements of a company denominated in the currency of a country with
a highly  inflationary  economy be remeasured  into a more stable currency unit.
Effective  January 1,  1999,  Mexico is no longer  deemed a highly  inflationary
economy.  Consequently,  for the year ended  December  31, 1999,  the  company's
functional currency is the Mexican peso.

5. We have also issued our  report,  dated  January  26,  2001 on the  financial
statements in constant pesos of Fytek S. A. de C. V. as of December 31, 2000 and
1999,  and the years  then  ended in which we  expressed  our  opinion  that the
financial  statements,  not included  herein,  present  fairly,  in all material
respects,  the financial position and results of operations of Fytek S. A. de C.
V. as of December 31, 2000 and 1999, in conformity  with  accounting  principles
generally accepted in Mexico.


Alejandro Moreno A.
Pricewaterhouse Coopers

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                              FYTEK, S. A. DE C. V.

                                 BALANCE SHEETS
                           Thousands of U.S. dollars


                                                  December 31,
                                                  2000     1999
                                                 ------   ------
Assets:
Cash and cash equivalents                       $   23    $  600
Accounts receivable                              2,770     2,505
Burke Mills, Inc. (Stockholder)                    356        97
Inventories                                      1,026       974
                                                ------    ------
Total current assets                             4,175     4,176
Machinery and equipment                            166       144
                                                ------    ------
Total assets                                    $4,341    $4,320
                                                ======    ======

Liabilities:
Suppliers                                       $  673    $1,127
Related parties payable                          1,960     1,963
Deferred income tax                                291        73
Sundry creditors and accrued expenses              100       223
                                                 ------   ------
Total current liabilities                        3,024     3,386
                                                 ------   ------

Stockholders' equity:
Capital stock                                      307       307
Retained earnings                                  868       606
Cumulative translation adjustment                  142        21
                                                 ------   ------
Total stockholders' equity                       1,317       934
                                                 ------   ------
Total liabilities and stockholders' equity      $4,341    $4,320
                                                =======   =======


The accompanying notes are an integral part of these financial statements.

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                              FYTEK, S. A. DE C. V.

                              STATEMENTS OF INCOME
                            Thousands of U.S. dollars

                                                  Years ended
                                                  December 31,
                                                 2000       1999
                                                ------     ------

Net sales                                      $8,508      $7,623
Cost of sales                                  (7,089)     (6,361)
                                                ------      ------
Gross margin                                    1,419       1,262
Operating expenses                               (557)       (561)
                                                ------      ------
Operating income                                  862         701
                                                ------      ------

Interest income                                     7          33
Interest expense                                  (16)        (15)
Exchange gain (loss), net                          25         (24)
                                                ------      ------
                                                   16          (6)
                                                ------      ------
                                                  878         695
Other income, net                                  12          14
                                                ------      ------
Income before income tax                          890         709
Income taxes expense                             (628)       (439)
                                                ------      ------
Net income                                     $  262      $  270
                                               =======     =======

The accompanying notes are an integral part of these financial statements.

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                              FYTEK, S. A. DE C. V.

                  STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                            Thousands of U.S. dollars


                                            Cumulative         Cumulative
                         Capital  Retained  translation        comprehensive
                         stock    earnings  adj.        Total  income
                         -----    --------  ---------   -----  ------

Balances at December 31,
   1998                  $307      $336                  $643   $336

Net income                         $270                  $270
Effect of change in functional
   currency (Note 1.f)                          ($3)     ($3)
Foreign currency translation
   adjustment                                   $24      $24
Comprehensive income                                            $291
                         -----    -----        -----    -----   -----

Balances at December 31,
   1999                  $307     $606         $21      $934    $627

Net income                        $262                  $262
Foreign currency translation
   adjustment                                 $121      $121
Comprehensive income                                            $383
                         -----    -----       -----    -----   -----

Balances at December 31,
   2000                  $307     $868        $142   $1,317   $1,010
                         ====     ====        ====   ======   ======

The accompanying notes are an integral part of these financial statements.

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                              FYTEK, S. A. DE C. V.

                            STATEMENTS OF CASH FLOWS
                            Thousands of U.S. dollars


                                                  Years ended
                                                  December 31,
                                                 2000     1999
                                                ------   ------
Net income                                       $262     $270

Items not affecting cash:
Allowance for doubtful accounts                     5       41
Depreciation                                        4
Deferred income taxes                             218      (43)
Foreign currency translation adjustment           121       21


Changes in working capital:
Accounts receivable                              (295)    (636)
Inventories                                       (60)      27
Related parties, net                             (251)     580
Suppliers                                        (453)      23
Sundry creditors, accrued expenses and other     (124)     133
                                                  ---      ---
Net cash provided by (used in) operating
   activities                                    (573)     416
                                                  ---      ---

Cash flow from investing activities:
------------------------------------
Acquisition of machinery and equipment            (27)     (85)
                                                  ---      ---

Cash used in investing activities                 (27)     (85)
                                                  ---      ---

Effect of exchange rate changes on
     cash and cash equivalents                     23      (10)
                                                  ---      ---
Increase (decrease) in cash
     and cash equivalents                        (577)     321

Cash and cash equivalents at
     beginning of the year                        600      279
                                                  ---      ---

Cash and cash equivalents at end of the year     $ 23     $600
                                                 ====     ====


The accompanying notes are an integral part of these financial statements.

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                              FYTEK, S. A. DE C. V.

                          NOTES TO FINANCIAL STATEMENTS
                     DECEMBER 31, 2000 COMPARATIVE WITH 1999

               (Thousands of U.S. dollars, except exchange rates)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The main activity of Fytek, S. A. de C. V. (the "Company") is the manufacture of
chemical fibers.  To carry out these activities the Company leases machinery and
equipment  from related  parties (see Note 8). The Company has no employees  and
technical and administrative services are provided to it by a related party. The
Company is owned 50.01% by Akra Teijin, S. A. de C.V. and 49.99% by Burke Mills,
Inc.

The  accompanying  financial  statements  have been prepared in accordance  with
accounting  principles  generally  accepted in the United  States of America (US
GAAP).

Following is a summary of the most significant accounting policies:


a.   Foreign currency transactions and translation

     The  records of the  Company  are  maintained  in Mexican  pesos  ("Ps." or
     "pesos").  The accompanying  consolidated financial statements were derived
     from the  Company's  accounting  records,  and  adjusted to conform with US
     GAAP.  The financial  statements  were then  translated  into U.S.  dollars
     ("dollars") in conformity with Statement of Financial  Accounting Standards
     ("SFAS") No. 52, "Foreign Currency Translation" ("SFAS 52").

     The  Company's  functional  currency  is the  Mexican  peso  (Ps).  Through
     December  31,  1998  Mexico was  considered  a  hyperinflationary  economy,
     therefore, the Company used the historical method of translation under SFAS
     52.  Under  this  method,  non-monetary  assets or  liabilities  originally
     denominated in pesos are translated into U.S.  dollars using the historical
     exchange rate at the date of the transaction.  Stockholders' equity is also
     translated at historical rates.  Income statement  components are generally
     translated at average rates; however, depreciation and amortization charges
     are  translated  at  historical  rates  based on the  dollars  basis of the
     respective assets. The resulting  translation effects are recognized in the
     statement of income.

     An  economy  is  considered  to be  hyperinflationary  when the  cumulative
     inflation for the previous three years exceeds 100%, however, since January
     1,  1999,  Mexico  is no longer  considered  a  hyperinflationary  economy.
     Therefore,  the  Company  used the  current  method to  translate  its peso
     denominated  financial statements to dollars, and applied the provisions of
     EITF 92-4, "Accounting for a Change in Functional Currency When an Economy



Page 7 of EX-99
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                              FYTEK, S. A. DE C. V.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
---------------------------------------------------

a.  Foreign currency transactions and translation (continued)
    ---------------------------------------------------------

     Ceases to be Considered Highly Inflationary" and EITF 92-8, "Accounting for
     the Income Tax Effects  under  SFAS109 of a Change in  Functional  Currency
     When an Economy Ceases to be Considered Highly Inflationary" to account for
     the change in functional currency.

     Using the remeasurement method monetary assets and liabilities  denominated
     in pesos are  translated  into U.S.  dollars  using  current  or period end
     exchange rates. The difference between the exchange rate at the date of the
     transaction  and the exchange rate on the settlement  date or balance sheet
     date if not settled,  is included in the results of operations as a foreign
     exchange  gain or loss.  Non-monetary  assets  or  liabilities,  originally
     denominated  in Ps  are  translated  into  U.S.  dollars  using  historical
     exchange rates at the date of the transactions.  Capital stock transactions
     are also translated at historical exchange rates.

     The current method  requires the  translation of all assets and liabilities
     using the current year end exchange  rate.  Capital  stock  continues to be
     translated at historical exchange rates and income statement components are
     translated  at average  rates.  The effect of the  difference  between  the
     exchange  rate at the  beginning  and the end of the  reporting  periods is
     reflected as a component of other comprehensive income within stockholders'
     equity.

     Provided  below is a summary  of the year end and  average  exchange  rates
experienced during 2000 and 1999.

                                                                   Ps per $
     At December 31, 2000                  Year end                 9.5997
     Year ended December 31, 2000          Average                  9.4470
     At December 31, 1999                  Year end                 9.5222
     Year ended December 31, 1999          Average                  9.5264

b.   Cash and cash equivalents
     -------------------------

     Cash and cash equivalents are stated at cost,  which  approximates the fair
     value. The Company considers all highly and temporary cash investments with
     original maturities of three months or less to be cash equivalents.




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                              FYTEK, S. A. DE C. V.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
---------------------------------------------------

c.   Inventories and cost of sales (Note 3)
     --------------------------------------

     Inventories are stated at the lower of average cost or market.

d.   Machinery, equipment and depreciation (Note 4)
     ----------------------------------------------

     Machinery and equipment are stated at acquisition cost.

     Depreciation  of capitalized  assets were  calculated by the  straight-line
     method at an annual rate of 2.5%,  beginning  January 1, 2000. This rate is
     based on the  estimated  useful  lives of the assets as  determined  by the
     Company.

e.   Long lived assets
     -----------------

     The Company  evaluates  potential  impairment  loss  relating to long-lived
     assets  by  assessing  whether  the  unamortized  carrying  amount  can  be
     recovered over the remaining life of the assets through undiscounted future
     expected cash flows generated by the assets and without  interest  charges.
     If the sum of the expected future  undiscounted cash flows is less than the
     carrying  amount of the  asset,  a loss is  recognized  for the  difference
     between  the fair  value  and  carrying  value of the  asset.  Assets to be
     disposed of are recorded at the lower of carrying amount or fair value less
     cost to sell.  Testing  whether an asset is impaired and for  measuring the
     impairment  loss is performed for assets  groupings at the lowest level for
     which there are identifiable cash flows that are largely independent of the
     cash flows generated by other asset groups.

     Long-lived  assets  will be  reviewed  for  impairment  whenever  events or
     changes  in  circumstances  indicate  that the  carrying  amount may not be
     recoverable.

f.   Income tax
     -----------

     The  Company  accounts  for  income  taxes  under the  liability  method in
     accordance with Statement of Financial  Accounting  Standards  ("SFAS") No.
     109, "Accounting for Income Taxes".

     This  statement  requires an asset and  liability  approach  for  financial
     accounting  and  reporting  for  income  tax  under  the  following   basic
     principles:  (a) a current tax  liability  or asset is  recognized  for the
     estimated  taxes payable or refundable on tax returns for the current year,
     (b) a deferred  tax  liability  or asset is  recognized  for the  estimated
     future


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                              FYTEK, S. A. DE C. V.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
---------------------------------------------------

     tax effects attributable to temporary  differences,  (c) the measurement of
     current and deferred tax  liabilities  and assets is based on provisions of
     the enacted tax law and the effects of future  changes in tax laws or rates
     are not  anticipated,  and (d) the  measurement  of deferred  tax assets is
     reduced,  if  necessary,  by the  amount  of any  tax  benefits  for  which
     available evidence indicates that it is more likely than not that they will
     not be realized. Under this method, deferred tax is recognized with respect
     to all temporary differences.

     The temporary  differences  under FAS No. 109 are  determined  based on the
     difference  between  the  historical  tax-basis  amount  of  the  asset  or
     liability  and the related  historical  amount  reported  in the  financial
     statements.

     An  additional  deferred tax  liability of $3 was recorded as of January 1,
     1999  to  reflect  the  temporary  difference  relating  to  machinery  and
     equipment  generated as a result of the change in the  methodology  used to
     translate the company's peso denominated financial statements.  This effect
     was  recorded  as  part  of  the  cumulative   translation   adjustment  in
     stockholders' equity.

g.   Revenue recognition
     -------------------

     The Company  recognizes revenue when merchandise is delivered to customers.
     The allowance for returns and doubtful  accounts is sufficient to cover any
     possible loss.

h.   Use of estimates
     ----------------

     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions that affect the amounts  reported in the financial  statements.
     Actual results could differ from those estimates.

i.   Comprehensive income
     --------------------
     Comprehensive  income is the  change in  equity  of a  business  enterprise
     during a period from transactions and other events and  circumstances  from
     non-owner sources. It includes all changes in equity during a period except
     those resulting from investments by owners and distributions to owners.

j.   Disclosure about concentration of credit risk
     ---------------------------------------------

     The Company's financial statements do not include any financial instruments
     that represent a significant concentration of credit risk.

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                              FYTEK, S. A. DE C. V.

NOTE 2 - ACCOUNTS RECEIVABLE
----------------------------
At December 31, this caption comprised the following:
                                                   2000            1999
                                                   -----          -----
Bermatex, Inc.                                    $  552         $  431
Fariel, S. A. de C. V.                               226            253
Politel, S. A. de C. V.                              412            169
Nova Distex, S. A. de C. V.                          239              -
Other customers                                      991          1,339
Other accounts receivable                            421            379
                                                   -----          -----
                                                   2,841          2,571
Allowance for doubtful accounts                      (71)           (66)
                                                  ------         ------
                                                  $2,770         $2,505
                                                  ======         ======


NOTE 3 - INVENTORIES
--------------------
At December 31, this caption comprised the following:

                                                   2000            1999
                                                  ------          ------
Finished products                                $  845          $  431
Work in process                                     340             253
Spare parts and others                               66             290
                                                  ------          ------
                                                 $1,251          $  974
Less - Allowance for slow moving inventories        225              -
                                                  ------          ------
                                                 $1,026          $  974
                                                 =======         =======


NOTE 4 - MACHINERY AND EQUIPMENT
--------------------------------
At December 31, this caption comprised the following:

                                                   2000            1999
                                                  ------          ------
Machinery and equipment                          $  164          $    75
Computer equipment                                    6                4
Construction in progress                                              65
                                                  ------          ------
                                                    170              144
Less - Accumulated depreciation                       4                -
                                                  ------          ------
                                                  $ 166           $  144
                                                  ======          ======


NOTE 5 - STOCKHOLDERS' EQUITY
-----------------------------
The  capital  stock is  variable  with a fixed  minimum  of $6 and an  unlimited
maximum.  At December 31, 2000, the subscribed and paid-in nominal capital stock
of $307, was represented by 24,450 Series "B" common,  nominative  shares of one
hundred nominal pesos par value each.

Dividends paid from retained  earnings which have not previously  been taxed are
subject to an income tax payable by the Company.


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                              FYTEK, S. A. DE C. V.

NOTE 6 - INCOME TAX
-------------------
The components of income tax expense  (benefit) for the years ended December 31,
are as follows:

                                                     2000        1999
                                                     ----        ----
Current income tax expense                           $410      $  482
Deferred income tax expense (benefit)                 218         (43)
                                                     ----        ----
                                                     $628        $439
                                                     ====        ====

The primary components of the deferred tax assets  (liabilities) at December 31,
are as follows:

                                                     2000        1999
                                                     ----        ----
Inventory                                           ($359)      ($274)
Machinery and equipment                                 2          (2)
Allowance for doubtful accounts                        25           23
Accrued expenses                                       41          180
                                                     ----         ----
Net income tax (liabilities)                        ($291)       ($ 73)
                                                     ====         ====

The  following  is a  reconciliation  of the  statutory  income  tax rate to the
effective income tax rate for the years ended December 31.

                                                     2000        1999
                                                     ----        ----
Income tax computed at statutory tax rate (35%)     $ 312       $ 248
Non-deductible items                                  102         119
Other permanent differences                            12          11
Effect of change in statutory tax rate                              3
Inflationary components and translation adjustments   202          58
                                                     ----         ----
Income tax expense                                  $ 628       $ 439
                                                     ====         ====


NOTE 7 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES
-------------------------------------------------------
Accounts payable with related parties at December 31, are as follows:

                                                      2000       1999
                                                      ----       ----
Nylon de Mexico, S. A. de C. V.                     $  175     $  190
Fibras Quimicas, S. A. de C. V.                      1,785      1,773
                                                     -----      -----
                                                    $1,960     $1,963


Administrative and technical services:
--------------------------------------
During the years ended December 31, 2000 and 1999 the Company accrued $1,407 and
$1,016,  respectively for  administrative  and technical  services due to Fibras
Quimicas, S. A. de C. V.

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                              FYTEK, S. A. DE C. V.

Operating lease:
----------------

In November  1996,  the Company  entered into a five year lease  agreements  for
buildings,  machinery  and  equipment  from  one  of  its  stockholders  and  an
affiliated  company,  under  non-cancelable  operating lease  agreements.  These
agreements expire in November 2001; however, Management is currently negotiating
their  renewals.  During the years ended December 31, 2000 and 1999, the Company
paid  rentals  of  $549,  and  $549,  respectively,  under  the  terms  of these
agreements.


Purchase and supply agreements:
-------------------------------

In 1996, the Company entered into a five year supply agreement with Burke Mills,
Inc.  to supply  approximately  $1,800,  annually  of  polyester  twisted  yarn,
beginning  November 1997.  During the years ended December 31, 2000 and 1999 the
Company supplied $2,084 and $1,484,  respectively,  of polyester twisted yarn to
Burke Mills Inc.

In 1996,  the  Company  entered  into a five year supply  agreement  with Fibras
Quimicas, S. A. de C. V. (affiliated company) to purchase  approximately $3,500,
annually of polyester natural yarn, beginning in November 1997. During the years
ended  December  31,  2000 and 1999 the  Company  acquired  $4,945  and  $4,304,
respectively, of polyester natural yarn under the terms of this agreement.



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