**Exhibit99.2**
| **** | **Polymer  Group, Inc.****9335  Harris Corners Pkwy.  Suite 300  Charlotte, NC 28269  www.polymergroupinc.com  704-697-5100** |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

 

***Polymer Group, Inc. ReportsImprovement in Second Quarter and Six-Month Results***

***For Immediate Release***

**Thursday, August 9,2007**

**[Charlotte, N.C.]****   ---** Polymer Group, Inc. (PGI) (OTC BulletinBoard: POLGA/POLGB) reported results from operations for the second quarter andsix-month period ended June 30, 2007.

Highlights included:

·       Salesreached record levels during the quarter, up 9.0% to $271.0 million over thesecond quarter of 2006 and up 5.7% for the first six months compared to thesame period of the prior year.

·       Profitability improved witha 21.5% increase in second quarter gross profit and a 13.4% increase in grossprofit for the first six months compared to the same periods of 2006. Additionally,the gross profit margin increased to 16.3% in the second quarter compared to14.7% the prior year and 16.8% for the first six months compared to 15.7% forthe first six months of 2006.

**SECOND QUARTER RESULTS**

Net sales for the second quarter of 2007 were $271.0million, up $22.3 million or 9.0% compared to $248.7 million in the secondquarter of 2006. Sales growth was driven primarily by higher volumes in thenonwovens segment, due to the contributions from capacity installations,primarily in the U.S. and Asia. Additionally, the company began to see thebenefit of new product sales, which included new acoustic material for theautomotive sector and the company’s flame retardant materials being sold intothe mattress segment as the new national flame test regulations took effect July 1,2007. In Europe, cable and converted wipes demand have remained strong,offsetting lower hygiene volumes compared to the previous year.

Gross profit increased $7.8 million to $44.3 millionfor the second quarter, an increase of 21.5% over the prior year comparableperiod. Gross profit margin for the quarter also improved over the prior yearto 16.3% of sales compared to a gross profit margin for the second quarter of2006 of 14.7%. Significant contributors to the company’s ability to improveprofitability were improved manufacturing efficiencies, improved sales volumesand lower start-up costs compared to the same period in 2006. Theseimprovements were partially offset by higher raw material costs relative tochanges in price and mix of the company’s net sales compared to the prior year.

Operating income for the second quarter of 2007 was$12.9 million compared to a loss of $5.8 million in the second quarter of 2006.Included in operating income were special charges of $3.5 million in the secondquarter of 2007 primarily associated with the U.S. consolidation activities. Specialcharges amounted to $14.3 million in the second quarter of 2006. The companycontinued to control costs, 

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keeping SG&A expense as a percent of salesessentially in line with the same period of the prior year at 10.4%. Additionally,non-cash restricted stock and stock option compensation expense represented$0.9 million in the most recent quarter and $0.5 million in the second quarterof 2006.

Polymer Group reported net income for the secondquarter of $1.2 million compared to a net loss of $12.6 million in the secondquarter of 2006.

**YEAR-TO-DATE RESULTS**

For the six months ended June 30, 2007, saleswere $538.1 million, up $28.9 million, or 5.7%, from the same period in 2006. Highersales volumes in Asia at the new Suzhou plant was the largest contributor tosales growth for the first six months accompanied by higher year-over-yearhygiene volumes in the U.S. and stronger sales in Europe that were aided bystronger foreign currency translations. The company’s year-to-date gross profitwas up $10.7 million to $90.3 million compared to the prior year, representingan increase of 13.4% and a gross profit margin of 16.8% compared to 15.7% theprior year. Higher raw material prices were offset by lower labor and fixedoverhead costs as a result of initiatives to improve manufacturing efficienciesthe U.S.

Operating income in the first six months of 2007 was$24.6 million compared to $2.8 million for the first six months of the previousyear due to the combined effect of higher gross profit levels, lower SG&Aexpenses, reduced special charges and favorable foreign currency movements. Asa percent of sales, SG&A expense was 10.6% for the first six months of 2007compared to 11.4% for the same period in 2006. Non-cash stock compensation forthe first six months was $1.6 million compared to $4.4 million for the sameperiod the prior year. For the first six months of 2007, the company recognizedspecial charges of $9.9 million and $15.9 million for the first six months of2006.

Net income for the first six months of 2007 amountedto $1.5 million compared to a loss of $14.2 million for the first six months of2006.

Polymer Group’s chief executive officer, Veronica(Ronee) M. Hagen, stated, “PGI delivered another quarter of strong performancedriven by increased customer demand and positive results from our new programs.The company’s key initiatives to achieving our targets for the year include thecontinued ramp up of our new facility in China, the installation of our newSpinlace® product capacity in the third quarter, the successful execution ofthe plant consolidation plans, and continued success of new product platforms,such as our new automotive moldable substrates and flame-retardant products formattress components. All of these initiatives are progressing and are expectedto contribute to a strong finish to the year as well as provide momentum into2008.

As we enter our seasonally slower third quarter, wewill continue to focus on the execution of our key initiatives while drivingefficiency improvements throughout our business. These improvements arenecessary to combat rising raw material prices and minimize the impact ofrequired price increases to our customers. Our success in these endeavors isexpected to result in continued year-over-year improvements in profitability,”Hagen said.

**CAPACITY EXPANSION AND IMPROVEMENTINITIATIVE PROGRESS**

The company reported that its previously announcedcapacity expansion initiatives are progressing as planned. The equipmentinstallation of the state-of-the-art spunmelt line in Buenos Aires, Argentinais on track to complete installation by the end of the fourth quarter of 2007,contributing to volume growth and improved profitability in fiscal year 2008. Thecompany’s efforts to retrofit an existing hydroentanglement line to produceSpinlace® products is near completion and the line is expected to beginstart-up in September of this year.

Additionally, consistent with its previously announcedplant consolidation plans, the company ceased manufacturing activities at itsRogers, Arkansas and Gainesville, Georgia plants in July. As the Reticulon®film line relocation is completed in Mexico, the company expects partialbenefit in late third 

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quarter and fourth quarter of 2007 with the full yearbenefit realized in 2008. The company previously announced plans to consolidatecertain lines of business currently manufactured at its plant in Neunkirchen,Germany to its Cuijk, The Netherlands location resulting in a reduction infixed overhead costs, the benefits of which are expected to contribute toimproved profitability in 2008.

Polymer Group, Inc., one of the world’s leadingproducers of nonwovens, is a global, technology-driven developer, producer andmarketer of engineered materials. With the broadest range of processtechnologies in the nonwovens industry, PGI is a global supplier to leadingconsumer and industrial product manufacturers. The company operates 19manufacturing 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 thatinvolve certain risks and uncertainties that could cause actual results todiffer materially from those described in the forward-looking statements withinthe meaning of Section 27A of the Securities Act of 1933 and Section 21Eof the Securities Exchange Act of 1934. These forward-looking statementsspeak only as of the date of this release. Important factors that could causeactual results to differ materially from those discussed in such forward-lookingstatements include: general economic factors including, but not limited to,changes in interest rates, foreign currency translation rates, consumerconfidence, trends in disposable income, changes in consumer demand for goodsproduced, and cyclical or other downturns; substantial debt levels andpotential inability to maintain sufficient liquidity to finance the company’soperations and make necessary capital expenditures; inability to meet existingdebt covenants; information and technological advances; changes inenvironmental laws and regulations; cost and availability of raw materials,labor and natural and other resources and the inability to pass raw materialcost increases along to customers; domestic and foreign competition; relianceon major customers and suppliers; achievement of objectives for strategic acquisitionsand dispositions; and risks related to operations in foreign jurisdictions. Investorsand other readers are directed to consider the risks and uncertaintiesdiscussed in documents filed by Polymer Group, Inc. with the Securitiesand Exchange Commission, including the company’s Annual Report on Form 10-Kand subsequent Quarterly Reports on Form 10-Q.

Forfurther information, please contact:

Dennis NormanVice President—Strategic Planning & Communication(704) 697-5186normand@pginw.com

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**POLYMERGROUP, INC.  Consolidated Statements of Operations(Unaudited)   Three Months Ended June 30, 2007   Three Months Ended March 31, 2007and   Three Months Ended July 1, 2006**
|                                                                                 | ** ** | **Three Months** | ** ** | **Three Months** | ** ** | **Three Months** | ** ** |
|---------------------------------------------------------------------------------|------------|-----------------------|------------|-----------------------|------------|-----------------------|------------|
| ** **                                                                      | ** ** | **Ended**             | ** ** | **Ended**             | ** ** | **Ended**             | ** ** |
| ** **                                                                      | ** ** | **June 30,**     | ** ** | **March 31,**    | ** ** | **July 1,**      | ** ** |
| ** **                                                                      | ** ** | **2007**              | ** ** | **2007**              | ** ** | **2006**              | ** ** |
| Net sales                                                                       |       |                  | $          | 271,015               |       |                  |       | $ | 267,037 |   |   |   | $ | 248,706 |   |   |
| Cost of goods sold                                                              |       |                  | 226,727    |                  |       |                  | 220,999    |   |   |   | 212,253 |   |   |
| Gross profit                                                                    |       |                  | 44,288     |                  |       |                  | 46,038     |   |   |   | 36,453 |   |   |
| Selling, general and administrative expenses                                    |       |                  | 28,268     |                  |       |                  | 28,442     |   |   |   | 25,555 |   |   |
| Special charges, net                                                            |       |                  | 3,520      |                  |       |                  | 6,377      |   |   |   | 14,266 |   |   |
| Foreign currency  (gain) loss, net                                              |       |                  | (398       | )                     |       |                  | (502       | ) |   |   | 2,405 |   |   |
| Operating income (loss)                                                         |       |                  | 12,898     |                  |       |                  | 11,721     |   |   |   | (5,773 | ) |   |
| Other expense  (income):                                                        |       |                  |       |                  |       |                  |       |   |   |   |   |   |   |
| Interest expense, net                                                           |       |                  | 8,087      |                  |       |                  | 8,134      |   |   |   | 7,079 |   |   |
| Other (gain) loss, net                                                          |       |                  | 403        |                  |       |                  | (1,802     | ) |   |   | 564 |   |   |
| Income (loss) before income tax expense (benefit) and minority  interests       |       |                  | 4,408      |                  |       |                  | 5,389      |   |   |   | (13,416 | ) |   |
| Income tax expense (benefit)                                                    |       |                  | 2,521      |                  |       |                  | 4,589      |   |   |   | (1,495 | ) |   |
| Minority interests,  net of tax                                                 |       |                  | 644        |                  |       |                  | 510        |   |   |   | 631 |   |   |
| Net income (loss)                                                               |       |                  | $          | 1,243                 |       |                  |       | $ | 290 |   |   |   | $ | (12,552 | ) |   |
| Average common shares outstanding                                               |       |                  | 19,300     |                  |       |                  | 19,263     |   |   |   | 19,289 |   |   |
| Income (loss) per  common share:                                                |       |                  |       |                  |       |                  |       |   |   |   |   |   |   |
| Basic                                                                           |       |                  | $          | 0.06                  |       |                  |       | $ | 0.02 |   |   |   | $ | (0.65 | ) |   |
| Diluted                                                                         |       |                  | $          | 0.06                  |       |                  |       | $ | 0.01 |   |   |   | $ | (0.65 | ) |   |
| **Selected  Financial Data**                                                    |       |                  |       |                  |       |                  |       |   |   |   |   |   |   |
| Depreciation and amortization expense included in operating income              |       |                  | $          | 14,356                |       |                  |       | $ | 14,204 |   |   |   | $ | 14,563 |   |   |
| Noncash compensation costs included in operating income     |       |                  | $          | 897                   |       |                  |       | $ | 711 |   |   |   | $ | 545 |   |   |
| Franchise Taxes                                                                 |       |                  | $          | 88                    |       |                  |       | $ | 472 |   |   |   | $ | 64 |   |   |
| Amortization of loan acquisition costs                                          |       |                  | $          | 344                   |       |                  |       | $ | 345 |   |   |   | $ | 345 |   |   |
| Capital expenditures                                                            |       |                  | $          | 9,347                 |       |                  |       | $ | 10,963 |   |   |   | $ | 15,591 |   |   |
| Special charges, net                                                            |       |                  |       |                  |       |                  |       |   |   |   |   |   |   |
| Asset Impairment charges                                                        |       |                  | 335        |                  |       |                  | —     |   |   |   | 7,856 |   |   |
| Restructuring and plant realignment costs                                       |       |                  | 3,068      |                  |       |                  | 6,207      |   |   |   | 2,740 |   |   |
| Other                                                                           |       |                  | 117        |                  |       |                  | 170        |   |   |   | 3,670 |   |   |
|                                                                            |       |                  | $          | 3,520                 |       |                  |       | $ | 6,377 |   |   |   | 14,266 |   |   |

 

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**POLYMERGROUP, INC.  Consolidated Statements of Operations(Unaudited)   Six Months Ended June 30, 2007 and   Six Months Ended July 1, 2006   (In Thousands, Except Per Share Data)**
|                                                                    | ** ** | **Six Months** | ** ** | **Six Months** | ** ** |
|--------------------------------------------------------------------|------------|---------------------|------------|---------------------|------------|
| ** **                                                         | ** ** | **Ended**           | ** ** | **Ended**           | ** ** |
| ** **                                                         | ** ** | **June 30,**   | ** ** | **July 1,**    | ** ** |
| ** **                                                         | ** ** | **2007**            | ** ** | **2006**            | ** ** |
| Net sales                                                          |       |                | $          | 538,052             |       |   |   | $ | 509,147 |   |   |
| Cost of goods sold                                                 |       |                | 447,726    |                |       |   | 429,490 |   |   |
| Gross profit                                                       |       |                | 90,326     |                |       |   | 79,657 |   |   |
| Selling, general and administrative expenses                       |       |                | 56,710     |                |       |   | 57,954 |   |   |
| Special charges, net                                               |       |                | 9,897      |                |       |   | 15,899 |   |   |
| Foreign currency  (gain) loss, net                                 |       |                | (900       | )                   |       |   | 2,972 |   |   |
| Operating income                                                   |       |                | 24,619     |                |       |   | 2,832 |   |   |
| Other expense  (income):                                           |       |                |       |                |       |   |   |   |   |
| Interest expense, net                                              |       |                | 16,221     |                |       |   | 13,596 |   |   |
| Other (gain) loss, net                                             |       |                | (1,399     | )                   |       |   | 1,054 |   |   |
| Income (loss) before income tax expense and minority interests     |       |                | 9,797      |                |       |   | (11,818 | ) |   |
| Income tax expense                                                 |       |                | 7,110      |                |       |   | 1,115 |   |   |
| Minority interests,  net of tax                                    |       |                | 1,154      |                |       |   | 1,223 |   |   |
| Net income (loss)                                                  |       |                | $          | 1,533               |       |   |   | $ | (14,156 | ) |   |
| Average common shares outstanding                                  |       |                | 19,282     |                |       |   | 19,268 |   |   |
| Income (loss) per  common share:                                   |       |                |       |                |       |   |   |   |   |
| Basic                                                              |       |                | $          | 0.08                |       |   |   | $ | (0.73 | ) |   |
| Diluted                                                            |       |                | $          | 0.08                |       |   |   | $ | (0.73 | ) |   |
| **Selected  Financial Data**                                       |       |                |       |                |       |   |   |   |   |
| Depreciation and amortization expense included in operating income |       |                | $          | 28,560              |       |   |   | $ | 28,992 |   |   |
| Noncash compensation costs included in operating income            |       |                | $          | 1,608               |       |   |   | $ | 4,368 |   |   |
| Franchise Taxes                                                    |       |                | $          | 560                 |       |   |   | $ | 462 |   |   |
| Amortization of loan acquisition costs                             |       |                | $          | 689                 |       |   |   | $ | 669 |   |   |
| Capital expenditures                                               |       |                | $          | 20,310              |       |   |   | $ | 46,436 |   |   |
| Special charges, net                                               |       |                |       |                |       |   |   |   |   |
| Asset Impairment charges                                           |       |                | 335        |                |       |   | 7,856 |   |   |
| Restructuring and plant realignment costs                          |       |                | 9,275      |                |       |   | 4,373 |   |   |
| Other                                                              |       |                | 287        |                |       |   | 3,670 |   |   |
|                                                               |       |                | 9,897      |                |       |   | 15,899 |   |   |

 

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**POLYMER GROUP, INC.Condensed Consolidated Balance Sheets (Unaudited)(In Thousands)**
|                                                             | ** ** | **June 30,** | ** ** | **December 30,** | ** ** |
|-------------------------------------------------------------|------------|-------------------|------------|-----------------------|------------|
| ** **                                                  | ** ** | **2007**          | ** ** | **2006**              | ** ** |
| **ASSETS**                                                  | ** ** | ** **        | ** ** |                  | ** ** | ** ** |   |
| Current assets:                                             |       |              |       |                  |       | ** ** |   |
| Cash and cash equivalents                                   |       | $                 | 35,981     |                  |       | $ | 32,104 | ** ** |   |
| Accounts receivable, net                                    |       | 139,429           |       |                  | 129,287    | ** ** |   |
| Inventories                                                 |       | 140,397           |       |                  | 132,530    | ** ** |   |
| Other                                                       |       | 26,608            |       |                  | 22,318     | ** ** |   |
| Total current assets                                        |       | 342,415           |       |                  | 316,239    | ** ** |   |
| Property, plant and equipment, net                          |       | 408,766           |       |                  | 411,054    | ** ** |   |
| Intangibles and loan  acquisition costs, net                |       | 9,520             |       |                  | 10,206     | ** ** |   |
| Other assets                                                |       | 4,390             |       |                  | 4,598      | ** ** |   |
| Total assets                                                |       | $                 | 765,091    |                  |       | $ | 742,097 | ** ** |   |
| **LIABILITIES AND SHAREHOLDERS’ EQUITY**               |       |              |       |                  |       | ** ** |   |
| Current liabilities:                                        |       |              |       |                  |       | ** ** |   |
| Accounts payable                                            |       | $                 | 89,414     |                  |       | $ | 102,675 | ** ** |   |
| Accrued expenses and other                                  |       | 49,827            |       |                  | 45,377     | ** ** |   |
| Current portion of long-term debt and short-term borrowings |       | 22,814            |       |                  | 8,740      | ** ** |   |
| Total current liabilities                                   |       | 162,055           |       |                  | 156,792    | ** ** |   |
| Long-term debt                                              |       | 401,283           |       |                  | 402,416    | ** ** |   |
| Other noncurrent  liabilities                               |       | 54,518            |       |                  | 57,139     | ** ** |   |
| Total liabilities                                           |       | 617,856           |       |                  | 616,347    | ** ** |   |
| Minority interests                                          |       | 18,116            |       |                  | 16,654     | ** ** |   |
| Shareholders’ equity                                   |       | 129,119           |       |                  | 109,096    | ** ** |   |
| Total liabilities and  shareholders’ equity            |       | $                 | 765,091    |                  |       | $ | 742,097 | ** ** |   |

 

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