**Exhibit 99.1**
|  | **Polymer  Group, Inc.  9335 Harris Corners Pkwy.**

**Suite  300**

**Charlotte,  NC 28269**

**www.polymergroupinc.com**

**704-697-5100** |
|--|----------------------------------------------------------------------------------------------------------------------------------------------|

*** ***

**PolymerGroup, Inc. Announces First Quarter Results**

***ContinuedStrength in Nonwovens Drives Growth and Profitability Improvement***

***ForImmediate Release***

**Thursday, May 10, 2007**

**[Charlotte,NC] ---** Polymer Group, Inc. (OTC Bulletin Board: POLGA/POLGB)announced results of operations for the first quarter ended March 31, 2007.

Operational highlightsincluded:

·                  Salescontinued to establish new record levels with first quarter sales growing 2.5%to $267.0 million compared to the first quarter of 2006

·                  Grossprofit increased 6.6% over the prior year period to $46.0 million and grossprofit margin increased to 17.2% compared to 16.6% the prior year due toincreased volumes, improved product mix and manufacturing efficiencies thatresulted in lower unit costs

·                  Newcapacity additions and a general improvement in the base business produced a5.6% increase in volumes in the nonwovens segment

Net sales for the firstquarter of 2007 were $267.0 million compared to $260.4 million in the firstquarter of 2006.  Sales growth was drivenprimarily by improved volumes in the nonwovens businesses offset somewhat bylower sales prices reflecting the impact of changes in relative raw materialcosts compared to the prior year.  Volumeincreased significantly in Asia as the company’s new spunmelt line was rampingup during the quarter and as the U.S. and Latin American regions benefited fromfull run rate volumes from the previously installed spunbond lines.  Additionally, the nonwovens base businessimproved over the prior year period, with gains in the cable and wipes marketsin the European region driving a 5.4% increase in sales volumes for theregion.  Industrial market volumes werehigher in the U.S. as new products ramped up during the quarter.  Offsetting the volume gains in the nonwovenssegment were lower volumes in the oriented polymers segment, primarily as aresult of the continued lower levels of lumberwrap sales first experiencedduring 2006.  Sales were also positivelyimpacted during the quarter by currency translation improvements as a result ofa weaker US dollar.

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Gross profit was $46.0million for the first quarter, representing a gross profit margin of 17.2%,compared to $41.4 million and 15.7%, respectively, for the previous quarter and$43.2 million and 16.6%, respectively, for the same period in 2006.  The company successfully improvedprofitability as a result of higher volumes, product mix improvements andimproved manufacturing efficiencies resulting in lower unit costs.  The manufacturing cost improvements wereexperienced across the business, in part due to cost improvement programsimplemented in 2006.  Raw material costswere relatively flat compared to the prior year and the prior quarter.

Operating income for thefirst quarter of 2007 was $11.7 million, which included $6.4 million of specialcharges associated with the company’s plans to consolidate plants in the U.S.and non-cash pension settlement costs in Canada as the company converted aportion of a defined benefit plan to a defined contribution plan.  Selling, general and administrative(SG&A) expenses were approximately $4.0 million lower in the first quartercompared to the prior year, primarily as a result of lower non-cash stockcompensation expenses recognized in the first quarter of 2007 of $0.7 millionversus $3.8 million in the comparable period of 2006.  The higher non-cash compensation costs duringthe first quarter of 2006 were the result of an initial grant of restrictedstock associated with the 2005 Employee Restricted Stock Plan.  SG&A expenses represented 10.7% of salesin the first quarter of 2007 compared to 12.4% the prior year.

Polymer Group’s chiefexecutive officer, Veronica (Ronee) M. Hagen, stated, “PGI’s businessre-established its trend of year-over-year growth and profitability thisquarter.  The nonwovens businesscontinues to show strength in all regions, both as a result of the strategiccapacity expansions implemented in 2006 and an encouraging continuation ofimprovement in the base business.  Thecompany’s focus on cost control was evident in the improvement in our overallprofit margins.”

“PGI is intensely focusedon becoming the industry leader through growth and innovation.  The company has a strong track record ofinvestment in both the developed and developing regions, and we expect tocontinue that commitment to our customers. Our new line being installed in Argentina is progressing and is expectedto be complete in the latter portion of this year.  Additionally, the company recently rolled outits new Spinlace® material at the IDEA 2007 trade show and received a strongresponse from the market.  Our firstSpinlaceTM line is due to be completed in the second half of 2007, providingcustomers with a new wiping application. My goal is to ensure PGI has the right strategy, structure andcompetencies to achieve our strategic objectives in the years to come,” Hagensaid.

Polymer Group, Inc., oneof the world’s leading producers of nonwovens, is a global, technology-drivendeveloper, producer and marketer of engineered materials. With the broadestrange of process technologies in the nonwovens industry, PGI is a global supplierto leading consumer and industrial product manufacturers. The company operates21 manufacturing and converting facilities throughout the world.

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Safe Harbor Statement 

Exceptfor historical information contained herein, the matters set forth in this pressrelease are forward-looking statements that involve certain risks anduncertainties that could cause actual results to differ materially from thosedescribed in the forward-looking statements within the meaning ofSection 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934. These forward-looking statements speakonly as of the date of this release. Important factors that could cause actual results to differ materiallyfrom those discussed in such forward-looking statements include: generaleconomic factors including, but not limited to, changes in interest rates,foreign currency translation rates, consumer confidence, trends in disposableincome, changes in consumer demand for goods produced, and cyclical or other downturns;substantial debt levels and potential inability to maintain sufficientliquidity to finance the company’s operations and make necessary capitalexpenditures; inability to meet existing debt covenants; information andtechnological advances; changes in environmental laws and regulations; cost andavailability of raw materials, labor and natural and other resources and theinability to pass raw material cost increases along to customers; domestic andforeign competition; reliance on major customers and suppliers; and risksrelated to operations in foreign jurisdictions. Investors and other readers are directed to consider the risks anduncertainties discussed in documents filed by Polymer Group, Inc. with the Securitiesand Exchange Commission, including the company’s Annual Report on Form 10-K andsubsequent Quarterly Reports on Form 10-Q.

For furtherinformation, please contact:

Dennis Norman

Vice President —Strategic Planning & Communication

(704) 697-5186

normand@pginw.com

 

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** P O L Y M E R   G R O U P, I N C.**

** ConsolidatedStatements of Operations (Unaudited)**

** Three Months EndedMarch 31, 2007**

** Three Months EndedDecember 30, 2006 and**

** Three Months EndedApril 1, 2006**

** (In Thousands, ExceptPer Share Data)**

 
| ** **                                                          | ** ** | **Three Months** | ** ** | **Three Months** | ** ** | **Three Months** | ** ** |
|---------------------------------------------------------------------|------------|-----------------------|------------|-----------------------|------------|-----------------------|------------|
| ** **                                                          | ** ** | **Ended**             | ** ** | **Ended**             | ** ** | **Ended**             | ** ** |
| ** **                                                          | ** ** | **March 31,**    | ** ** | **December 30,** | ** ** | **April 1,**     | ** ** |
| ** **                                                          | ** ** | **2007**              | ** ** | **2006**              | ** ** | **2006**              | ** ** |
|                                                                |       |                  |       |                  |       |                  |       |
| Net sales                                                           |       | $                     | 267,037    |                  | $          | 263,875               |       | $ | 260,441 |   |
|                                                                |       |                  |       |                  |       |                  |       |
| Cost of goods sold                                                  |       | 220,999               |       | 222,459               |       | 217,237               |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Gross profit                                                        |       | 46,038                |       | 41,416                |       | 43,204                |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Selling, general and  administrative expenses                       |       | 28,442                |       | 27,141                |       | 32,398                |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Special charges, net                                                |       | 6,377                 |       | 21,931                |       | 1,633                 |       |
| Foreign currency (gain)  loss, net                                  |       | (502                  | )          | (591                  | )          | 567                   |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Operating income (loss)                                             |       | 11,721                |       | (7,065                | )          | 8,606                 |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Other expense (income):                                             |       |                  |       |                  |       |                  |       |
| Interest  expense, net                                              |       | 8,134                 |       | 8,173                 |       | 6,518                 |       |
| Other (gain)  loss, net                                             |       | (1,802                | )          | (592                  | )          | 491                   |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Income (loss) before  income tax expense and minority interests     |       | 5,389                 |       | (14,646               | )          | 1,597                 |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Income tax expense                                                  |       | 4,589                 |       | 3,618                 |       | 2,610                 |       |
| Minority interests, net  of tax                                     |       | 510                   |       | 596                   |       | 592                   |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Net income (loss)                                                   |       | $                     | 290        |                  | $          | (18,860               | )          | $ | (1,605 | ) |
|                                                                |       |                  |       |                  |       |                  |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Average common shares  outstanding                                  |       | 19,263                |       | 19,282                |       | 19,247                |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Income (loss) per  common share:                                    |       |                  |       |                  |       |                  |       |
| Basic                                                               |       | $                     | 0.02       |                  | $          | (0.98                 | )          | $ | (0.08 | ) |
|                                                                |       |                  |       |                  |       |                  |       |
| Diluted                                                             |       | $                     | 0.01       |                  | $          | (0.98                 | )          | $ | (0.08 | ) |
|                                                                |       |                  |       |                  |       |                  |       |
| **Selected Financial Data**                                         |       |                  |       |                  |       |                  |       |
|                                                                |       |                  |       |                  |       |                  |       |
| Depreciation and  amortization expense included in operating income |       | $                     | 14,204     |                  | $          | 15,596                |       | $ | 14,438 |   |
|                                                                |       |                  |       |                  |       |                  |       |
| Noncash compensation  costs included in operating income            |       | $                     | 711        |                  | $          | (338                  | )          | $ | 3,823 |   |
|                                                                |       |                  |       |                  |       |                  |       |
| Franchise Taxes                                                     |       | $                     | 472        |                  | $          | 94                    |       | $ | 398 |   |
|                                                                |       |                  |       |                  |       |                  |       |
| Amortization of loan  acquisition costs                             |       | $                     | 345        |                  | $          | 334                   |       | $ | 325 |   |
|                                                                |       |                  |       |                  |       |                  |       |
| Capital expenditures                                                |       | $                     | 10,963     |                  | $          | 4,881                 |       | $ | 30,845 |   |
|                                                                |       |                  |       |                  |       |                  |       |
| Special charges, net                                                |       |                  |       |                  |       |                  |       |
| Asset Impairment  charges                                           |       | —                |       | 18,578                |       | —                |       |
| Restructuring and plant  realignment costs                          |       | 6,207                 |       | 2,070                 |       | 1,633                 |       |
| Other                                                               |       | 170                   |       | 1,283                 |       |                  |       |
|                                                                |       | $                     | 6,377      |                  | $          | 21,931                |       | 1,633 |   |

 

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**P O L Y M E R   G R O UP,  I N C.**

**Condensed Consolidated Balance Sheets (Unaudited)**

**(In Thousands)**

 

 

 

 
| ** **                                                                                                     | ** ** | **March 31,** | ** ** | **December 30,** | ** ** |
|----------------------------------------------------------------------------------------------------------------|------------|---------------|------------|------------------|------------|
| ** **                                                                                                     | ** ** | **2007**      | ** ** | **2006**         | ** ** |
|                                                                                                           | ** ** | ** **    | ** ** | ** **       | ** ** |
| **A S S E  T S**                                                                                               | ** ** |
| ** **                                                                                                     | ** ** | ** **    | ** ** | ** **       | ** ** |
| Current assets:                                                                                                |       |          |       |             |       |
| Cash and cash  equivalents                                                                                     |       | $             | 19,103     |             | $          | 32,104 |   |
| Accounts receivable,  net                                                                                      |       | 142,686       |       | 129,287          |       |
| Inventories                                                                                                    |       | 138,488       |       | 132,530          |       |
| Other                                                                                                          |       | 27,044        |       | 22,318           |       |
| Total current assets                                                                                           |       | 327,321       |       | 316,239          |       |
|                                                                                                           |       |          |       |             |       |
| Property, plant and equipment, net                                                                             |       | 408,953       |       | 411,054          |       |
| Intangibles and loan acquisition costs, net                                                                    |       | 9,855         |       | 10,206           |       |
| Other assets                                                                                                   |       | 3,642         |       | 4,598            |       |
| Total assets                                                                                                   |       | $             | 749,771    |             | $          | 742,097 |   |
|                                                                                                           |       |          |       |             |       |
|                                                                                                           |       |          |       |             |       |
| **L I A B  I L I T I E S   A N D   S H A R E H O L D E R S’   E Q U I T Y** |       |
|                                                                                                           |       |          |       |             |       |
| Current liabilities:                                                                                           |       |          |       |             |       |
| Accounts payable                                                                                               |       | $             | 91,200     |             | $          | 102,675 |   |
| Accrued expenses and  other                                                                                    |       | 47,327        |       | 45,377           |       |
| Current portion of  long-term debt and short-term borrowings                                                   |       | 24,977        |       | 8,740            |       |
| Total current  liabilities                                                                                     |       | 163,504       |       | 156,792          |       |
|                                                                                                           |       |          |       |             |       |
| Long-term debt                                                                                                 |       | 395,184       |       | 402,416          |       |
| Other noncurrent liabilities                                                                                   |       | 54,558        |       | 57,139           |       |
| Total liabilities                                                                                              |       | 613,246       |       | 616,347          |       |
| Minority interests                                                                                             |       | 17,228        |       | 16,654           |       |
|                                                                                                           |       |          |       |             |       |
| Shareholders’ equity                                                                                      |       | 119,297       |       | 109,096          |       |
| Total liabilities and  shareholders’ equity                                                               |       | $             | 749,771    |             | $          | 742,097 |   |

 

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