Exhibit
99.1  Polymer Group, Inc.9335 Harris Corners ParkwaySuite 300Charlotte, NC 28269www.polymergroupinc.com704-697-5100  PGI Reports Third Quarter and
Nine-Month Results  For
Immediate Release  Wednesday,November5, 2008  [Charlotte, N.C.] Polymer Group, Inc.
(PGI) (OTC Bulletin Board: POLGA/POLGB) reported results from operations for
the third quarter and nine-month periods ended September 27, 2008.  Highlights
included:  ·Sales continued to
reach record levels during the quarter, up 17.5% to $301.0 million over the
third quarter of 2007 and up 9.0% to $865.7 million for the first nine months
compared to the same period of the prior year.  ·Gross profit for
the quarter was up 8.5% over the prior year to $43.0 million; however, margins
were negatively impacted by significant increases in raw material costs during
the quarter.  Year-to-date, gross profit
was $131.8 million compared to $130.0 million for the first nine months of
2007.  ·Net income in the
third quarter increased 43.8% over the second quarter of 2008 to $3.4 million,
or $0.18 per share, and improved $24.3 million from the net loss of $20.9
million recorded in third quarter of 2007. 
For the first nine months of fiscal 2008, net income improved to $7.2
million compared to a loss of $19.4 million for the same period in 2007.  ·The decline in raw
material costs experienced since August is expected to result in an
improvement in gross profit margins and bottom line profitability in the fourth
quarter.  THIRD
QUARTER RESULTS  PGI reported record sales for the third quarter of
$301.0 million, up 17.5% over the prior year. 
The top line growth was driven predominantly by higher selling prices in
response to higher raw material costs, but also included positive contributions
from an improved mix in many market segments and higher overall volumes in the
Nonwovens business of $12.6 million. 
Volume growth was achieved in Latin America, predominantly in Argentina,
where the company added capacity at the end of last year, and in Asia where
steady increases in high grade medical fabric production have resulted in
higher volumes and an improved profit mix. 
Additionally, the companys proprietary Spinlace® product volumes were
contributing at full capacity during the quarter.  Sales in the Oriented Polymers business were
negatively impacted by lower volumes; however, positive contributions from
improved product mix and higher selling prices resulted in year-over-year sales
growth.  While gross profit of
$43.0 million for the third quarter was $3.3 million higher than the third
quarter of 2007, profitability was negatively impacted during the quarter by
the large run up in raw


material unit costs in
July, specifically in polypropylene, on the heels of cost increases already
experienced late in the second quarter. 
These cost increases were greater than the increase in selling prices
that the company was able to achieve during the same period.  The impact of higher raw material costs was partially
offset by improved price/mix of sales and lower depreciation charges, resulting
from fiscal 2007 impairments, during fiscal 2008. The raw material component of
the cost of goods sold as a percentage of net sales increased from 53.3% in
2007 to 56.8% in 2008.  Operating income for the
third quarter of 2008 was $9.0 million compared to a loss of $7.2 million in
the third quarter of 2007 and operating income of $14.0 million in the second
quarter of 2008.  Included in operating
income were special charges of $1.7 million in the third quarter of 2008
primarily related to exit costs associated with our previously announced plant
closures and consolidations in the US and Europe.  Special charges amounted to $20.4 million in
the third quarter of 2007 and $1.8 million in the second quarter of 2008.  Selling, general and administrative
(SG&A) expenses were lower than the previous quarter by $0.7 million, due
primarily to the absence of certain separation costs recognized in the second
quarter.  However, total SG&A was
higher than the prior year by $3.9 million, with $1.1 million of this increase
due to strengthening foreign currencies and an additional $1.0 million dollars
resulting from higher export and distribution expenses associated with new
volumes in Argentina.  PGI reported net income
for the third quarter of $3.4 million compared to $2.4 million in the second
quarter and a loss of $20.9 million in the third quarter of 2007.  YEAR-TO-DATE RESULTS  For the nine months ended
September 27, 2008, sales were $865.7 million, up $71.4 million, or 9.0%,
from the same period in 2007.  Net sales
improved in the Nonwovens segment over comparable 2007 results by 9.8%, and net
sales in fiscal 2008 in the Oriented Polymers segment increased 4.7% from 2007
results.  The primary driver of increased
sales was price increases resulting from the pass-through of higher raw
material costs.  Net volume in the
Nonwovens segment declined $7.1 million compared to the prior year period due
primarily to declines in the U.S. and Europe from underperforming business
lines that were exited.  These volume
declines were partially offset by volume growth in Asia and Latin America.  The increases in the developing regions
consisted of hygiene sales in Latin America, including sales generated by the
companys new facility in Argentina, and growth in Asia that was predominantly
driven by year-over-year growth in medical sales.  The Oriented Polymers segment increased sales
by $6.0 million from the nine-month period of fiscal 2007 primarily as a
result of higher selling prices, partially offset by lower sales volumes.  Gross profit was $131.8
million compared to $130.0 million the prior year, primarily reflecting the
impact of raw material costs that have increased significantly in recent periods
and manufacturing inefficiencies associated with new line and new product
start-ups during the year, and offset by lower depreciation charges resulting
from impairments recognized in 2007 and other manufacturing gains.  SG&A costs for the
first nine months were up 10.3% compared to the same period in the prior
year.  $4.2 million of the $8.5 million
increase was due to translation of costs incurred outside of the U.S. in
strengthening foreign currencies. 
Additionally, freight and distribution costs, primarily incurred in
Latin America, were up $2.2 million and management separation costs of $1.6
million also contributed to higher year-over-year expenses.  Special charges were $4.8 million for the
first nine months of 2008, compared to $30.2 million the prior year.  The charges in 2008 primarily consisted  2


of remaining costs
associated with the European plant closure announced in 2007 and activities
associated with the closure of the plant in Landisville, NJ.  Operations at the Landisville facility
officially ceased during the third quarter. 
Operating income in the first nine months of 2008 was $35.1 million
compared to $17.4 million for the first nine months of the previous year due
primarily to the factors discussed above.  Net
income for the first nine months of 2008 amounted to $7.2 million, or $0.37 per
share, compared to a loss of $19.4 million, or $1.00 per share, for the first
nine months of 2007.  PGIs
chief executive officer, Veronica (Ronee) M. Hagen, stated, Our performance in
the third quarter was overshadowed by the extreme fluctuations in the raw
material market. However, underlying
volume demand was stable during the quarter in the disposable nonwovens
applications, reflecting PGIs more defensive model in a turbulent economic
environment.  We continued to achieve
growth in our developing regions of Latin American and Asia, despite a
challenging market environment in South America.  Our proprietary Spinlace line was running at
full capacity during the quarter and we began rolling the product out in our
converted wipes business both in the U.S. and Europe.  While we began to experience some softening
in the durable goods applications in the industrial markets, certain product
applications contributed offsetting volume gains during the quarter.  Beginning in September, we have experienced a
dramatic drop in raw material costs that we expect to continue through the
remainder of the year.  As such, we
expect to end the year with a very strong fourth quarter with higher margins
and bottom line profitability, producing an improved second half of 2008
compared to the first half, Hagen said.  The
company continued to manage the balance sheet and investments relative to cash
flows during the quarter.  For the first
nine months, cash flows from operations increased 33.4% to $34.4 million
compared to $25.8 million for the first nine months of 2007.  Capital expenditures for the quarter were
$7.5 million compared to $26.1 million in the third quarter of 2007 and were
$28.4 million for the first nine months of 2008 compared to $46.4 million for
the same period the prior year. 
Operating working capital, defined as accounts receivable plus
inventories less trade accounts payable and accrued liabilities, decreased to
$135.8 million and represented 11.2% of annualized sales compared to 12.8% of
annualized sales for the third quarter of 2007 and 12.2% of annualized sales at
the end of the second quarter.  The
company reduced debt during the quarter to $416.5 million compared to $427.0
million at the end of the 2007 fiscal year.  ADJUSTED
EBITDA  Adjusted
EBITDA, a non-GAAP financial measure defined below, for the third quarter of
2008 was $25.9 million compared to $28.9 million in the third quarter of 2007.  For the nine months ended September 27,
2008, Adjusted EBITDA was $82.3 million compared to $92.5 million for the same
period of 2007.  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 SecuritiesandExchange 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  3


(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 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.  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 17 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.  4


For further
  information, please contact:Dennis
  NormanVice
  President  Strategy & Corporate Development(704)
  697-5186normand@pginw.com  5


POLYMER
GROUP, INC. Consolidated Statements of Operations (Unaudited) Three Months Ended September 27, 2008, Three Months Ended June 28, 2008 and Three Months Ended September 29, 2007 (In Thousands, Except Per Share Data)  Three Months
  
  Three Months
  
  Three MonthsEnded
  
  Ended
  
  EndedSeptember 27,
  
  June 28,
  
  September 29,2008
  
  2008
  
  2007Net sales
  
  $
  301,037
  
  $
  290,873
  
  $
  256,186Cost of goods
  sold
  
  258,011
  
  244,986
  
  216,515Gross profit
  
  43,026
  
  45,887
  
  39,671Selling, general
  and administrative expenses
  
  29,968
  
  30,675
  
  26,097Special charges,
  net
  
  1,687
  
  1,794
  
  20,350Foreign currency
  (gain) loss, net
  
  2,348
  
  (561
  )
  464Operating income
  (loss)
  
  9,023
  
  13,979
  
  (7,240
  )Other expense
  (income):Interest
  expense, net
  
  8,002
  
  7,958
  
  8,666Other gain, net
  
  (3,205
  )
  (87
  )
  (615
  )Income (loss)
  before income tax expense and minority interests
  
  4,226
  
  6,108
  
  (15,291
  )Income tax
  expense
  
  2,542
  
  3,545
  
  5,219Minority
  interests, net of tax
  
  (1,738
  )
  183
  
  400Net income
  (loss)
  
  $
  3,422
  
  $
  2,380
  
  $
  (20,910
  )Average common
  shares outstanding
  
  19,336
  
  19,286
  
  19,388Income (loss)
  per common share:Basic
  
  $
  0.18
  
  $
  0.12
  
  $
  (1.08
  )Diluted
  
  $
  0.18
  
  $
  0.12
  
  $
  (1.08
  )  6


POLYMER
GROUP, INC. Consolidated
Statements of Operations (Unaudited) Nine Months
Ended September 27, 2008 and Nine Months
Ended September 29, 2007 (In
Thousands, Except Per Share Data)  Nine Months
  
  Nine MonthsEnded
  
  EndedSeptember 27,
  
  September 29,2008
  
  2007Net sales
  
  $
  865,683
  
  $
  794,238Cost of goods
  sold
  
  733,864
  
  664,241Gross profit
  
  131,819
  
  129,997Selling, general
  and administrative expenses
  
  91,343
  
  82,807Special charges,
  net
  
  4,844
  
  30,247Foreign currency
  (gain) loss, net
  
  495
  
  (436
  )Operating income
  
  35,137
  
  17,379Other expense
  (income):Interest
  expense, net
  
  24,667
  
  24,887Other gain, net
  
  (2,805
  )
  (2,014
  )Income (loss)
  before income tax expense and minority interests
  
  13,275
  
  (5,494
  )Income tax
  expense
  
  7,711
  
  12,328Minority
  interests, net of tax
  
  (1,662
  )
  1,555Net income
  (loss)
  
  $
  7,226
  
  $
  (19,377
  )Average common
  shares outstanding
  
  19,258
  
  19,346Income (loss)
  per common share:Basic
  
  $
  0.37
  
  $
  (1.00
  )Diluted
  
  $
  0.37
  
  $
  (1.00
  )  7


POLYMER GROUP, INC. Condensed Consolidated Balance Sheets (Unaudited) (In Thousands)  September 27,
  
  December 29,2008
  
  2007ASSETSCurrent assets:Cash and cash
  equivalents
  
  $
  27,598
  
  $
  31,698Accounts receivable,
  net
  
  158,121
  
  139,505Inventories
  
  144,792
  
  139,726Other
  
  34,255
  
  28,906Total current
  assets
  
  364,766
  
  339,835Property, plant
  and equipment, net
  
  383,440
  
  395,394Intangibles and
  loan acquisition costs, net
  
  7,995
  
  9,341Other assets
  
  11,323
  
  6,101Total assets
  
  $
  767,524
  
  $
  750,671LIABILITIES AND SHAREHOLDERS EQUITYCurrent
  liabilities:Accounts payable
  and accrued liabilities
  
  $
  167,112
  
  $
  150,365Current portion
  of long-term debt and short-term borrowings
  
  19,267
  
  11,444Other
  
  2,056
  
  2,069Total current
  liabilities
  
  188,435
  
  163,878Long-term debt
  
  397,202
  
  415,514Other noncurrent
  liabilities
  
  55,046
  
  53,002Total
  liabilities
  
  640,683
  
  632,394Minority
  interests
  
  18,083
  
  19,745Shareholders
  equity
  
  108,758
  
  98,532Total
  liabilities and shareholders equity
  
  $
  767,524
  
  $
  750,671  8


POLYMER GROUP, INC. Selected Financial Data (Unaudited) (In Thousands)  Three Months
  
  Three Months
  
  Three MonthsEnded
  
  Ended
  
  EndedSeptember 27,
  
  June 28,
  
  September 29,2008
  
  2008
  
  2007Selected
  Financial DataDepreciation and
  amortization expense included in operating income
  
  $
  12,124
  
  $
  12,724
  
  $
  14,191Noncash
  compensation costs included in operating income
  
  $
  495
  
  $
  352
  
  $
  1,047Amortization of
  loan acquisition costs
  
  $
  345
  
  $
  346
  
  $
  345Capital expenditures
  
  $
  7,503
  
  $
  8,332
  
  $
  26,063Special charges,
  netAsset Impairment
  charges
  
  $
  
  
  $
  
  
  $
  12,156Restructuring
  and plant realignment costs
  
  1,512
  
  1,398
  
  8,175Other
  
  175
  
  396
  
  19$
  1,687
  
  $
  1,794
  
  $
  20,350Foreign Currency
  (Gain) Loss included in operating incomeUnited States
  
  $
  242
  
  $
  (1
  )
  $
  (301
  )Canada
  
  $
  25
  
  $
  109
  
  $
  365Europe
  
  $
  (178
  )
  $
  (25
  )
  $
  236Asia
  
  $
  39
  
  $
  120
  
  $
  (6
  )Latin America
  
  2,220
  
  (764
  )
  170$
  2,348
  
  $
  (561
  )
  $
  464Adjusted
  EBITDAThe following
  table reconciles Adjusted EBITDA to net income for the periods presented:Net income
  
  $
  3,422
  
  $
  2,380
  
  $
  (20,910
  )Income &
  franchise tax expense
  
  2,582
  
  4,167
  
  5,331Interest
  expense, net
  
  8,002
  
  7,958
  
  8,666Depreciation and
  amortization included expense in operating income
  
  12,124
  
  12,724
  
  14,191Minority
  interests, net of tax & cash disbursements
  
  (1,738
  )
  183
  
  136Non-cash compensation
  
  495
  
  352
  
  1,047Foreign currency
  gain, net
  
  (1,248
  )
  (1,268
  )
  (47
  )Special charges,
  net
  
  1,687
  
  1,794
  
  20,350Other charges
  (gains), net
  
  559
  
  644
  
  139Adjusted EBITDA
  
  $
  25,885
  
  $
  28,934
  
  $
  28,903Nine Months
  
  Nine MonthsEnded
  
  EndedSeptember 27,
  
  September 29,2008
  
  2007Selected
  Financial DataDepreciation and
  amortization expense included in operating income
  
  
  
  $
  37,636
  
  $
  42,751Noncash
  compensation costs included in operating income
  
  
  
  $
  2,695
  
  $
  2,655Amortization of
  loan acquisition costs
  
  
  
  $
  1,036
  
  $
  1,034Capital
  expenditures
  
  
  
  $
  28,414
  
  $
  46,373Special charges,
  netAsset Impairment
  charges
  
  
  
  $
  
  
  $
  12,491Restructuring
  and plant realignment costs
  
  
  
  4,262
  
  17,450Other
  
  
  
  582
  
  306$
  4,844
  
  $
  30,247Foreign Currency
  (Gain) Loss included in operating incomeUnited States
  
  
  
  $
  404
  
  $
  (444
  )Canada
  
  
  
  $
  (129
  )
  $
  542Europe
  
  
  
  $
  156
  
  $
  235Asia
  
  
  
  $
  464
  
  $
  116Latin America
  
  
  
  (400
  )
  (885
  )$
  495
  
  $
  (436
  )Adjusted
  EBITDAThe following
  table reconciles Adjusted EBITDA to net income for the periods presented:Net income
  
  
  
  $
  7,226
  
  $
  (19,377
  )Income &
  franchise tax expense
  
  
  
  8,986
  
  13,001Interest
  expense, net
  
  
  
  24,667
  
  24,887Depreciation and
  amortization included expense in operating income
  
  
  
  37,636
  
  42,751Minority
  interests, net of tax & cash disbursements
  
  
  
  (1,662
  )
  (589
  )Non-cash
  compensation
  
  
  
  2,695
  
  2,655Foreign currency
  gain, net
  
  
  
  (3,507
  )
  (796
  )Special charges,
  net
  
  
  
  4,844
  
  30,247Other charges
  (gains), net
  
  
  
  1,402
  
  (302
  )Adjusted EBITDA
  
  
  
  $
  82,287
  
  $
  92,477  9