Exhibit
99.1  Polymer
  Group, Inc.
  9335
  Harris Corners Parkway
  Suite 300
  Charlotte, NC 28269
  www.polymergroupinc.com
  704-697-5100  PGI Reports First Quarter 2010
Results  For
Immediate Release  Thursday, May 13, 2010  Charlotte, N.C.Polymer
Group, Inc. (PGI) (OTC Bulletin Board: POLGA/POLGB) reported results of
operations for the first quarter ended April 3, 2010.  Highlights
included:  ·Top Line Results Up on Volumes, Pricing and Mix  ·Net sales were
$280.6 million compared with sales from continuing operations of $243.6 million
in the fourth quarter of 2009 and sales from continuing operations of $210.0
million for the first quarter of 2009, reflecting strong gains in volume in
Asia and Latin America, a better-than-expected contribution from the
acquisition in Spain, higher selling prices due to the pass through of higher
raw material costs and increased sales of higher grade medical products in
Asia.  ·Profitability Improved Sequentially  ·Gross profit
improved to $47.6 million from $44.5 million in the fourth quarter of 2009 and decreased
from $49.4 million in the prior-year period.  ·Raw material costs
continued their rapid rise since the second quarter of 2009 with cost increases
of as high as 27% through April in North America compared to the opposite
result in the first quarter of 2009 as significantly lower raw material costs contributed
to dramatic improvement in profitability in the first quarter of 2009.  ·Operating income
was $9.2 million, reversing an operating loss of $3.3 million in the
fourth quarter of 2009. The company reported operating income of $20.0 million
in the prior-year period.  ·Adjusted EBITDA was
$27.8 million compared with $22.6 million in the fourth quarter of 2009 and
$37.8 million in the prior-year period. 
Adjusted EBITDA, a non-GAAP financial measure, is defined and reconciled
to net income below.  ·Investing in Growth  ·The companys
December 2009 acquisition of a nonwovens business in Spain contributed
significantly to volumes and profitability in the first quarter of 2010. PGI
Spain strengthened the companys position as a global leader in the hygiene market
and gave it a new presence in Europe with state-of-the-art technology.  -MORE-


·The company
initiated the expansion of its new proprietary high barrier spunmelt capacity at
its facility in Suzhou, China during the first quarter of 2010 and continued to
make progress toward installation of a similar spunmelt line in the U.S. Both
capacity expansions are expected to be online in mid-2011.  PGIs
chief executive officer, Veronica (Ronee) M. Hagen, stated, The top line
growth we experienced in the first quarter highlights the growth investments we
have made in Latin America and Asia, better-than-expected results from our
recent acquisition in Spain and stability in demand in Europe and the U.S. The
rapid and significant increase in raw material costs year-to-date is consistent
with the climate of volatility we expected heading into the year, but we are
confident our initiatives to reduce the impact and maintain spreads will keep
us on the right course for delivering underlying improvement in 2010. The
increasing demand in our consumer markets across all regions and the
stabilization occurring in industrial durables are encouraging. We will look to
build on this progress and continue to invest in driving growth.  FIRST
QUARTER RESULTS  Net sales for the first quarter of 2010 were $280.6
million compared with $210.0 million for the first quarter of 2009.  The increase was due primarily to additional
volume in the companys Nonwovens segment from the acquisition of the Spain
business and increased sales volumes in Latin America and Asia, partially
offset by a decline in the U.S. from consolidation initiatives in the carded
business. Oriented Polymers volumes improved from the depressed levels
experienced a year ago. Net sales also benefitted from a higher sales/mix due
to price increases resulting from the higher raw material costs in the first
quarter of 2010 and a larger portion of medical sales in Asia. Foreign currency
changes increased sales by approximately $3.5 million as most currencies were
stronger against the U.S. dollar during 2010 compared with 2009.  Gross profit decreased $1.8 million to $47.6 million
compared with the prior year, but was $3.1 million higher than fourth quarter
2009 levels.  A portion of the sequential
quarter improvement was the result of a full quarter of contribution from the
acquisition in Spain compared to only one month of contribution in the fourth
quarter of 2009 and no contribution in the first quarter of 2009.  Profit in the first quarter of 2009
benefitted from the significant drop in raw material costs experienced in the
fourth quarter of 2008 and into the first quarter of 2009 without a
corresponding drop in sales prices due to the lag between the change in raw
material costs and the change in sales price. 
As raw material prices increased in the second half of 2009 and into the
first quarter of 2010, the company did not experience the same benefit for the
first quarter of 2010.  These changes
offset improvements in the base business associated with improvements in mix
and pricing effectiveness.  Raw material
costs were $21.8 million higher in the first quarter of 2010 compared with
2009, partially offset by increases in sales/mix of $13.8 million related to
the pass-through of higher raw material costs. Manufacturing costs were higher
in the first quarter of 2010 compared with the prior year, which reflected the
inefficiencies caused by the relocation, reinstallation and startup associated
with the consolidation of the companys North Little Rock, Arkansas plant into
its facility in Benson, North Carolina.  Operating income for the first quarter of 2010 was
$9.2 million compared with $20.0 million in the first quarter of 2009.  Selling, general and administrative
(SG&A) expenses for the first quarter of  2


2010 were higher than the prior-year period by $6.7
million, but lower than fourth quarter 2009 levels.  The year-over-year increase was due primarily
to the incremental SG&A expenses from the addition of the Spain business
and the previously announced $2.3 million of incentive compensation expense recognized
in the first quarter of 2010 associated with the 2009 performance that was
awarded by the Board in the fourth quarter of 2009. Also included in operating
income were special charges of $4.2 million in the first quarter of 2010,
primarily related to our previously announced plant consolidations in the U.S.
carded operations and restructuring plans in Europe.  PGI reported net income attributable to PGI for the
first quarter of $0.2, compared with net income of $9.6 million in the first
quarter of 2009, including $1.9 million of income from discontinued operations.  FINANCIAL
METRICS  As of April 3, 2010 net debt (defined as total
debt less cash balances) was $286.7 million. 
Capital expenditures for the quarter were $4.7 million compared with
$3.4 million in the first quarter of 2009. 
Operating working capital, defined as accounts receivable plus
inventories less trade accounts payable and accrued liabilities, was $87.7
million and represented 7.8% of annual sales compared with $86.8 million and
8.9% of annual sales for the fourth quarter of 2009.  ADJUSTED EBITDA  Adjusted
EBITDA for the first quarter of 2010 was $27.8 million compared with $37.8
million in the first quarter of 2009. The benefit from the acquisition of the
Spain business, which is somewhat reduced by a $1.6 million operating lease
payment, was more than offset by the significant increase in raw material costs
in the first quarter of 2010, costs associated with the transition of carded
business in the U.S., and higher SG&A costs. The first quarter of 2009
benefitted from the significant lag effect in selling prices and raw materials
described above.  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 (2) operating cash flows determined
in accordance with GAAP. The 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 agreement, as the  3


measurement
used as a basis for determining 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 its performance and believes it is frequently used by
securities analysts, investors and other interested parties in the evaluation
of companies in its industry.  Included in this release is a reconciliation of net
income to Adjusted EBITDA, which illustrates the differences in these measures
of operating performance.  EARNINGS CONFERENCE CALL  PGI
will conduct an investor conference call, including presentation slides,
starting at 10:00 a.m. EDT on Friday, May 14, 2010.  A live webcast of the conference call and
presentation material can be accessed by visiting PGIs investor relations
website at www.polymergroupinc.com. Participants inside the U.S. and Canada can
access the call by dialing866.314.9013(pass code:75412723). Callers
dialing from outside the U.S. and Canada can access the call by dialing617.213.8053(pass code:75412723).  Shortly after the conclusion of the
conference call, a webcast replay will be made available at
www.polymergroupinc.com.  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 14 manufacturing and converting facilities in 9 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; 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 to
selling prices to customers which are based, by contract, on an underlying raw
material index; substantial debt levels and potential inability to maintain
sufficient liquidity to finance our operations and make necessary capital
expenditures; inability to meet existing debt covenants or obtain necessary
waivers; achievement of objectives for strategic acquisitions and dispositions;
inability to achieve successful or timely start-up on new or modified
production lines; reliance on major customers and suppliers; domestic and
foreign competition; information and technological advances; risks related to
operations in foreign jurisdictions; and changes in environmental laws and
regulations, including climate change-related legislation and regulation.
Investors and other readers are directed to consider the risks and  4


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: Dennis Norman Chief Financial Officer (704) 697-5186 normand@pginw.com  5


POLYMER
GROUP, INC. Consolidated Statements of Operations (Unaudited) Three
Months Ended April 3, 2010, Three Months Ended January 2,
2010 and Three
Months Ended April 4, 2009 (In Thousands, Except Per Share
Data)  Three Months
  
  Three Months
  
  Three MonthsEnded
  
  Ended
  
  EndedApril 3,
  
  January 2,
  
  April 4,2010
  
  2010
  
  2009Net
  sales
  
  $
  280,595
  
  $
  243,580
  
  $
  210,010Cost
  of goods sold
  
  233,021
  
  199,081
  
  160,591Gross
  profit
  
  47,574
  
  44,499
  
  49,419Selling,
  general and administrative expenses
  
  33,520
  
  35,568
  
  26,842Acquisition
  and integration expenses
  
  1,524
  
  1,789
  
  Special
  charges, net
  
  4,217
  
  10,307
  
  2,891Other
  operating (income) loss, net
  
  (917
  )
  172
  
  (352
  )Operating
  income (loss)
  
  9,230
  
  (3,337
  )
  20,038Other
  expense (income):Interest
  expense, net
  
  8,655
  
  7,107
  
  7,393Gain
  on reacquisition of debt
  
  
  
  
  
  (2,431
  )Loss
  on extinguishment of debt
  
  
  
  3
  
  Other
  loss, net
  
  60
  
  145
  
  2,156Income
  (loss) before income taxes
  
  515
  
  (10,592
  )
  12,920Income
  tax expense (benefit)
  
  214
  
  (854
  )
  7,182Net
  income (loss)
  
  $
  301
  
  $
  (9,738
  )
  $
  5,738Discontinued
  operationsIncome
  from operations of discontinued business
  
  
  
  
  
  $
  1,941Gain
  on sale of discontinued operations
  
  
  
  28Income
  from discontinued operations
  
  $
  
  
  $
  28
  
  $
  1,941Net
  income (loss)
  
  $
  301
  
  $
  (9,710
  )
  $
  7,679Net
  (income) loss attributable to noncontrolling interests
  
  (88
  )
  (1,132
  )
  1,877Net
  income (loss) attributable to Polymer Group, Inc.
  
  $
  213
  
  $
  (10,842
  )
  $
  9,556Average
  common shares outstanding - Basic
  
  20,517
  
  19,990
  
  19,387Earnings
  (loss) per common share attributable to Polymer Group, Inc.:BasicContinuing
  operations
  
  $
  0.01
  
  $
  (0.55
  )
  $
  0.39Discontinued
  operations
  
  
  
  0.00
  
  0.10Basic
  
  $
  0.01
  
  $
  (0.55
  )
  $
  0.49Diluted
  
  $
  0.01
  
  $
  (0.55
  )
  $
  0.49  6


POLYMER
GROUP, INC. Condensed Consolidated Balance Sheets (Unaudited) (In Thousands)  April  3,
  
  January  2,2010
  
  2010ASSETSCurrent assets:Cash and cash equivalents
  
  $
  54,265
  
  $
  59,521Accounts receivable, net
  
  144,912
  
  127,976Inventories
  
  106,863
  
  106,770Other
  
  47,344
  
  37,994Assets of discontinued operations
  
  
  
  Total current assets
  
  353,384
  
  332,261Property, plant and equipment, net
  
  317,454
  
  331,293Intangibles and loan acquisition costs, net
  
  8,506
  
  9,006Other assets
  
  29,860
  
  29,806Total assets
  
  $
  709,204
  
  $
  702,366LIABILITIES
  AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable and accrued liabilities
  
  $
  164,098
  
  $
  147,992Current portion of long-term debt and short-term
  borrowings
  
  22,002
  
  20,611Other
  
  1,034
  
  3,940Liabilities of discontinued operations
  
  
  
  Total current liabilities
  
  187,134
  
  172,543Long-term debt
  
  318,952
  
  322,021Other noncurrent liabilities
  
  59,028
  
  58,673Total liabilities
  
  565,114
  
  553,237Total PGI shareholders equity
  
  135,960
  
  141,091Noncontrolling interests
  
  8,130
  
  8,038Total equity
  
  144,090
  
  149,129Total liabilities and equity
  
  $
  709,204
  
  $
  702,366  7


POLYMER
GROUP, INC. Selected Financial Data (Unaudited) (In Thousands)  Three Months
  
  Three Months
  
  Three MonthsEnded
  
  Ended
  
  EndedApril 3,
  
  January 2,
  
  April 4,2010
  
  2010
  
  2009Selected Financial DataDepreciation and amortization expense included in
  operating income
  
  $
  12,469
  
  $
  12,510
  
  $
  11,874Noncash compensation costs included in operating
  income
  
  $
  1,255
  
  $
  1,260
  
  $
  423Amortization of loan acquisition costs
  
  $
  215
  
  $
  168
  
  $
  335Capital expenditures
  
  $
  4,713
  
  $
  9,883
  
  $
  3,439Special charges, netAsset Impairment charges
  
  $
  
  
  $
  
  
  $
  1,600Restructuring and plant realignment costs
  
  4,192
  
  10,244
  
  1,284Other
  
  25
  
  63
  
  7$
  4,217
  
  $
  10,307
  
  $
  2,891Other operating (income) loss, net including
  Foreign Currency (Gain) LossUnited States
  
  $
  (226
  )
  $
  (216
  )
  $
  (138
  )Canada
  
  208
  
  (205
  )
  30Europe
  
  (2
  )
  (221
  )
  (477
  )Asia
  
  8
  
  13
  
  11Latin America
  
  (905
  )
  801
  
  222$
  (917
  )
  $
  172
  
  $
  (352
  )  Adjusted EBITDA  The following table reconciles Adjusted EBITDA to net income (loss)
attributable to Polymer Group Inc. for the periods presented:  Net income (loss) attributable to Polymer
  Group, Inc.
  
  $
  213
  
  $
  (10,842
  )
  $
  9,556Income & franchise tax expense (benefit)
  
  391
  
  (804
  )
  7,453Interest expense, net
  
  8,655
  
  7,107
  
  7,393Depreciation and amortization expense included in
  operating income
  
  12,469
  
  12,510
  
  11,874Minority interests, net of tax & cash
  disbursements
  
  88
  
  1,132
  
  (1,877
  )Non-cash compensation
  
  1,255
  
  1,260
  
  423Foreign currency (gain) loss, net
  
  (939
  )
  592
  
  2,063Special charges, net
  
  4,217
  
  10,307
  
  2,891Fees paid for refinancing of credit agreement
  
  
  
  3
  
  Less gain on sale of discontinued operation
  
  
  
  (28
  )
  Less income from discontinued operations
  
  
  
  
  
  (1,941
  )Unusual or non-recurring charges, net
  
  1,492
  
  1,406
  
  Adjusted EBITDA
  
  $
  27,841
  
  $
  22,643
  
  $
  37,835  -END-  8