Exhibit 99.1

GRAPHIC

Polymer Group, Inc.
9335 Harris Corners Parkway
Suite 300
Charlotte, NC 28269www.polymergroupinc.com704-697-5100


PGI Reports Second Quarter and Six-Month Results

For Immediate Release

Wednesday, August 6, 2008

[Charlotte, N.C.]Polymer Group, Inc. (PGI) (OTC Bulletin Board: POLGA/POLGB) reported results from
operations for the second quarter and six-month periods ended June 28, 2008.

Highlights
included:



SECOND
QUARTER RESULTS

Net
sales for the second quarter of 2008 were $290.9 million, up $19.9 million or 7.3% compared to $271.0 million in the second quarter of 2007. Sales increased
primarily as a result of steps the company has continued to take to mitigate the impact of rising raw material costs through higher selling prices. Price increases and mix improvements contributed
$19.5 million to higher sales compared to the second quarter of 2007. Total sales volumes on a comparable basis were down 3.4% compared to the second quarter of 2007, primarily due to lower
volumes from exited facilities in the U.S. and Europe in the second half of 2007. Underlying volumes in the U.S. were solid as new industrial programs continued to come on line and hygiene demand
remained strong. Additionally, volumes were higher in Latin America as the new line in Argentina ramped up during the quarter, and in Asia as the company's new facility in Suzhou continued to improve
compared to the prior year, along with higher hygiene volumes from the specialty chemical bond line at its Foshan location. Changes in foreign currency exchange rates contributed $9.6 million
to sales growth during the quarter compared to the same quarter of the prior year.

Gross
profit increased to $45.9 million for the second quarter, an increase of $3.0 million or 6.9% over the first quarter of 2008 and 3.6% over the prior year comparable
period. Raw material costs, specifically, polypropylene, increased significantly during the quarter. These cost increases were greater than the increase in selling prices that the company was able to
achieve during the same period. As such, profit levels were negatively impacted. The improvement in gross profit was driven primarily by improvements in product mix and lower manufacturing costs in
the Nonwovens segment, offset by higher raw material costs in excess of selling price increases, start-up costs associated with capacity installations and lower volumes from consolidated
operations. Additionally, depreciation expense was lower in the second quarter of 2008 compared to the second quarter of 2007.

Operating
income for the second quarter of 2008 was $14.4 million compared to $12.9 million in the second quarter of 2007 and $12.1 million in the first quarter of
2008. Included in operating income were special charges of $1.4 million in the second quarter of 2008 primarily associated with European

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consolidation
activities. Special charges amounted to $3.5 million in the second quarter of 2007 and $1.4 million in the first quarter of 2008. Selling, general and administrative (SG&A)
expenses were higher compared to the second quarter of 2007 primarily as the result of foreign currency exchange rates and separation costs associated with certain management positions, including the
company's former chief financial officer. Non-cash stock compensation expense represented $0.4 million in the most recent quarter, $1.8 million in the first quarter of 2008
and $0.9 million in the second quarter of 2007.

Polymer
Group reported net income for the second quarter of $2.4 million compared to $1.2 million in the second quarter of 2007.

YEAR-TO-DATE
RESULTS

For
the six months ended June 28, 2008, sales were $564.6 million, up $26.6 million, or 4.9%, from the same period in 2007. Increases in selling prices attained to
mitigate the impact of raw material cost increases was the largest contributor, accompanied by higher volumes in Latin America and Asia and favorable foreign currency translations. These gains were
offset by lower volumes in the U.S. and Europe due to plants that were consolidated in the second half of 2007. The company's year-to-date gross profit was $88.8 million
compared to $90.3 million the prior year due primarily to higher raw material costs net of selling price increases and lower volumes on a consolidated basis, partially offset by improved
product mix in the U.S. and Asia, lower depreciation expense and improved manufacturing efficiencies in the U.S. and Europe.

Operating
income in the first six months of 2008 was $26.5 million compared to $24.6 million for the first six months of the previous year due primarily to the factors
discussed above, combined with lower special charges and higher SG&A costs which was negatively impacted by $3.1 million associated with unfavorable foreign currency exchange rates and
$1.2 million of increased freight and export costs as volumes increased in Latin America. Additionally, non-cash stock compensation for the first six months which was
$2.2 million compared to $1.6 million for the same
period the prior year. For the first six months of 2008, the company recognized special charges of $2.8 million, compared to $9.9 million for the first six months of 2007.

Net
income for the first six months of 2008 amounted to $3.8 million compared to $1.5 million for the first six months of 2007.

Polymer
Group's chief executive officer, Veronica (Ronee) M. Hagen, stated, "The underlying performance of the majority of our nonwovens business has been strong. Our business in Asia
has improved significantly during the year as high value medical volumes have increased and our U.S. business has improved through new product development and exceptional operating efficiencies. Also,
our industrial business in Europe has remained strong and we continue to grow cable volumes. These improvements have been tempered somewhat by start-up issues in Latin America associated
with the Reticulon® line in Mexico and the new spunbond line in Argentina and the intensely competitive environment that exists in South America due to new capacity installations into the
market. The Oriented Polymers segment has been relatively stable for the first half of 2008 after a tumultuous second half of last year.

The
largest single impact to our business in the second quarter, and expected for the third quarter of 2008, is the dramatic increases we have experienced in raw material costs. Certain
raw material prices, specifically polypropylene, have lagged the increase in underlying oil prices and increased dramatically in the recent months. The company is aggressively addressing the situation
through a number of initiatives, including the recent global price increase announcements. We believe that these efforts, along with continued improvement in our base business and new capacity
expansions, will enable the company to improve profitability in the second half of the year," Hagen said.

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ADJUSTED
EBITDA

Adjusted
EBITDA, a non-GAAP financial measure defined below, for the second quarter of 2008 was $28.9 million compared to $27.5 million in the first quarter of
2008 and $30.8 for the second quarter of 2007. For the six months ended June 28, 2008, Adjusted EBITDA was $56.4 million compared to $63.6 million for the first half of 2007.

OUTLOOK
FOR SECOND HALF OF FISCAL 2008

The
company reported it expects raw material costs to increase significantly in the third quarter based on increases in polypropylene experienced in July. Due to the lag provision that
exists in certain customer agreements to pass along such increases and related competitive pressures, the company expects profitability and working capital levels to be negatively impacted in the
third quarter. The company expects Adjusted EBITDA for the third quarter to be consistent with second quarter levels. Based on current market expectations for raw materials, the company expects profit
improvement in the fourth quarter and Adjusted EBITDA for the second half of 2008 to improve compared to the first half of 2008. However, while the company expects to meet or exceed its revenue growth
targets for the year, it does not expect Adjusted EBITDA to be in the previously communicated range of 10%15% growth compared to fiscal 2007.

Accordingly,
the company has taken steps to lower its capital expenditures for the remainder of the year. Capital expenditures for the second half of 2008 are expected to be less than
$20 million, enabling the company to appropriately balance cash flows from operations with capital expenditures.

Robert
Kocourek, chief financial officer, stated, "PGI is intensely focused on proper balance sheet management and we are taking appropriate steps to ensure we remain in a healthy
financial position. As raw material cost increases have resulted in higher working capital investment, we have taken steps to reduce or delay our planned cash outflows for capital investment. These
are not expected to impact the timing of strategic projects, such as the installation of the new line in Mexico, but will better match cash generated from the business with the timing of investments
made for growth."

The
company undertakes no obligation and does not intend to publicly update or revise any forward-looking statement, including projected Adjusted EBITDA and other performance measures
for fiscal 2008, whether as a result of new information, future events or otherwise. Although the company believes its current expectations to be based upon reasonable assumptions, it can give no
assurance that our expectations will be attained or that actual results will not differ materially.

NON-GAAP
FINANCIAL MEASURE

Adjusted
EBITDA (as defined below) is used in this release as a "non-GAAP financial measure," which is a measure of the company's financial performance that is different from
measures calculated and presented in accordance with generally accepted accounting principles,
or GAAP, within the meaning of applicable Securities and Exchange Commission rules. A non-GAAP financial measure, such as EBITDA or Adjusted EBITDA, should not be viewed as an alternative
to GAAP measures of performance such as (1) net income determined in accordance with GAAP or (2) operating cash flows determined in accordance with GAAP. Our calculation of Adjusted
EBITDA may not be comparable to the calculation of similarly titled measures reported by other companies.

As
defined in the company's credit agreement, Adjusted EBITDA equals net income (loss) before income and franchise tax expense (benefit), interest expense net, depreciation and
amortization, minority interests net of cash distributions, write-off of loan acquisition costs, non-cash compensation, foreign currency gain and losses, net, and special
charges net of unusual or non-recurring gains. The company presents Adjusted EBITDA, as defined in its credit facility, as the measurement used as a basis for determining our compliance
with several covenants thereunder. It is also generally consistent with the metric used by management as a performance measurement for certain performance-based incentive

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compensation
plans. In addition, the company considers Adjusted EBITDA an important supplemental measure of our performance and believes it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our industry. The company has conformed its definition of Adjusted EBITDA this period to the definition in its senior secured credit facility
as the company believes such measurement is more relevant to evaluating the results of the business.

Included
in this release is a reconciliation of net income to Adjusted EBITDA, which illustrates the differences in these measures of operating performance.

Polymer
Group, Inc., one of the world's leading producers of nonwovens, is a global, technology-driven developer, producer and marketer of engineered materials. With the broadest
range of process technologies in the nonwovens industry, PGI is a global supplier to leading consumer and industrial product manufacturers. The company operates 18 manufacturing and converting
facilities in 8 countries throughout the world.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements, within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve certain risks and uncertainties that could cause actual
results to differ materially from those described in
the forward-looking statements. These forward-looking statements speak only as of the date of this release. Important factors that could cause actual results to differ materially from those discussed
in such forward-looking statements include: general economic factors including, but not limited to, changes in interest rates, foreign currency translation rates, consumer confidence, trends in
disposable income, changes in consumer demand for goods produced, and cyclical or other downturns; substantial debt levels and potential inability to maintain sufficient liquidity to finance the
company's operations and make necessary capital expenditures; inability to meet existing debt covenants; information and technological advances; changes in environmental laws and regulations; cost and
availability of raw materials, labor and natural and other resources and the inability to pass raw material cost increases along to customers; changes in selling prices to customers which are based,
by contract, on an underlying index; domestic and foreign competition; reliance on major customers and suppliers; inability to achieve successful or timely start-up on new or modified
production lines; achievement of objectives for strategic acquisitions and dispositions; and risks related to operations in foreign jurisdictions. Investors and other readers are directed to consider
the risks and uncertainties discussed in documents filed by Polymer Group, Inc. with the Securities and Exchange Commission, including the company's Annual Report on
Form 10-K and subsequent Quarterly Reports on Form 10-Q.

For
further information, please contact:



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POLYMER GROUP, INC.  Consolidated Statements of Operations (Unaudited)  Three Months Ended June 28, 2008,  Three Months Ended March 29, 2008, and  Three Months Ended June 30, 2007  (In
Thousands, Except Per Share Data)

Three Months
Ended
June 28,
2008

Three Months
Ended
March 29,
2008

Three Months
Ended
June 30,
2007Net sales

$
290,873

$
273,773

$
271,015Cost of goods sold


244,986


230,867


226,727Gross profit


45,887


42,906


44,288Selling, general and administrative expenses


30,675


30,700


28,268Special charges, net


1,388


1,363


3,520Foreign currency gain, net


(561
)

(1,292
)

(398
)Operating income


14,385


12,135


12,898Other expense:Interest expense, net


7,958


8,707


8,087Other loss, net


319


487


403Income before income tax expense and minority interests


6,108


2,941


4,408Income tax expense


3,545


1,624


2,521Minority interests, net of tax


183


(107
)

644Net income

$
2,380

$
1,424

$
1,243Average common shares outstanding


19,286


19,197


19,300Income per common share:Basic

$
0.12

$
0.07

$
0.06Diluted

$
0.12

$
0.07

$
0.06


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POLYMER GROUP, INC.  Consolidated Statements of Operations (Unaudited)  Six Months Ended June 28, 2008 and  Six Months Ended June 30, 2007  (In Thousands, Except Per Share Data)

Six Months
Ended
June 28,
2008

Six Months
Ended
June 30,
2007Net sales

$
564,646

$
538,052Cost of goods sold


475,853


447,726Gross profit


88,793


90,326Selling, general and administrative expenses


61,375


56,710Special charges, net


2,751


9,897Foreign currency gain, net


(1,853
)

(900
)Operating income


26,520


24,619Other expense (income):Interest expense, net


16,665


16,221Other (gain) loss, net


806


(1,399
)Income before income tax expense and minority interests


9,049


9,797Income tax expense


5,169


7,110Minority interests, net of tax


76


1,154Net income

$
3,804

$
1,533Average common shares outstanding


19,255


19,282Income per common share:Basic

$
0.20

$
0.08Diluted

$
0.20

$
0.08


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POLYMER GROUP, INC.  Condensed Consolidated Balance Sheets (Unaudited)  (In Thousands)

June 28,
2008

December 29,
2007ASSETSCurrent assets:Cash and cash equivalents

$
27,147

$
31,698Accounts receivable, net


158,361


139,505Inventories


146,999


139,726Other


34,591


28,906Total current assets


367,098


339,835Property, plant and equipment, net


394,561


395,394Intangibles and loan acquisition costs, net


8,408


9,341Other assets


10,277


6,101Total assets

$
780,344

$
750,671LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued liabilities

$
164,086

$
150,365Current portion of long-term debt and short-term borrowings


15,777


11,444Other


2,293


2,069Total current liabilities


182,156


163,878Long-term debt


406,827


415,514Other noncurrent liabilities


56,719


53,002Total liabilities


645,702


632,394Minority interests


19,821


19,745Shareholders' equity


114,821


98,532Total liabilities and shareholders' equity

$
780,344

$
750,671


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POLYMER GROUP, INC.  Selected Financial Data (Unaudited)  (In Thousands)

Three Months
Ended
June 28,
2008

Three Months
Ended
March 29,
2008

Three Months
Ended
June 30,
2007Selected Financial DataDepreciation and amortization expense included in operating income

$
12,724

$
12,788

$
14,356Noncash compensation costs included in operating income

$
352

$
1,849

$
897Amortization of loan acquisition costs

$
346

$
345

$
344Capital expenditures

$
8,332

$
12,579

$
9,347Special charges, netAsset Impairment charges

$


$


$
335Restructuring and plant realignment costs


1,398


1,352


3,068Other


(10
)

11


117$
1,388

$
1,363

$
3,520Adjusted EBITDAThe following table reconciles Adjusted EBITDA to net income for the periods presented:Net income

$
2,380

$
1,424

$
1,243Income & franchise tax expense


4,167


2,237


2,609Interest expense, net


7,958


8,707


8,087Depreciation and amortization included expense in operating income


12,724


12,788


14,356Minority interests, net of tax & cash disbursements


183


(107
)

644Non-cash compensation


352


1,849


897Foreign currency gain, net


(1,268
)

(991
)

(207
)Special charges, net


1,388


1,363


3,520Other charges (gains), net


1,050


198


(311
)Adjusted EBITDA

$
28,934

$
27,468

$
30,838




Six Months
Ended
June 28,
2008



Six Months
Ended
June 30,
2007Selected Financial DataDepreciation and amortization expense included in operating income

$
25,512




$
28,560Noncash compensation costs included in operating income

$
2,201




$
1,608Amortization of loan acquisition costs

$
691




$
689Capital expenditures

$
20,911




$
20,310Special charges, netAsset Impairment charges

$





$
335Restructuring and plant realignment costs


2,750





9,275Other


1





287$
2,751




$
9,897Adjusted EBITDAThe following table reconciles Adjusted EBITDA to net income for the periods presented:Net income

$
3,804




$
1,533Income & franchise tax expense


6,404





7,670Interest expense, net


16,665





16,221Depreciation and amortization included expense in operating income


25,512





28,560Minority interests, net of tax & cash disbursements


76





(726
)Non-cash compensation


2,201





1,608Foreign currency gain, net


(2,259
)




(749
)Special charges, net


2,751





9,897Other charges (gains), net


1,248





(440
)Adjusted EBITDA

$
56,402




$
63,574


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