Exhibit 99.1

BGF Industries, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(dollars in thousands)



|                                |  |                                |        |   |      |   |               |  |   |        |   |  |      |          |   |      |   |        |   |  |   |       
|------------------------------- |  | ------------------------------ | ------ | - | ---- | - | ------------- |  | - | ------ | - |  | ---- | -------- | - | ---- | - | ------ | - |  | - | ------
|                                |  | Fiscal Year Ended December 31,
|                                |  | 2005                           |        |   | 2004 |   | 2003          |  |   | 2002   |   |  | 2001 |          |   | 2000
|                                |  |                                |        |   |      |   | (as restated) |  |   |        |   |  |      |          |   |     
|Net income (loss)               |  | $                              | (4,935 | ) |      | $ | 1,881         |  | $ | (3,436 | ) |  | $    | (140,573 | ) |      | $ | (3,078 | ) |  | $ | 8,330 
|Depreciation and amortization   |  |                                | 10,018 |   |      |   | 5,494         |  |   | 6,039  |   |  |      | 12,966   |   |      |   | 8,744  |   |  |   | 8,584 
|Interest                        |  |                                | 11,333 |   |      |   | 12,025        |  |   | 13,812 |   |  |      | 13,926   |   |      |   | 13,972 |   |  |   | 14,168
|Taxes                           |  |                                | 30     |   |      |   | 16            |  |   |       |   |  |      | 6,835    |   |      |   | (1,868 | ) |  |   | 5,602 
|Non-cash non-recurring charges: |  |                                |        |   |      |   |               |  |   |        |   |  |      |          |   |      |   |        |   |  |   |       
|Reserve on loan to parent       |  |                                |       |   |      |   |              |  |   |       |   |  |      | 97,711   |   |      |   |       |   |  |   |      
|Asset impairment charge         |  |                                |       |   |      |   | 712           |  |   |       |   |  |      | 5,816    |   |      |   |       |   |  |   |      
|Retirement settlement charge    |  |                                |       |   |      |   |              |  |   |       |   |  |      | 1,386    |   |      |   |       |   |  |   |      
|                                |  |                                |        |   |      |   |               |  |   |        |   |  |      |          |   |      |   |        |   |  |   |       
|Adjusted EBITDA(1)              |  | $                              | 16,446 |   |      | $ | 20,128        |  | $ | 16,415 |   |  | $    | (1,933   | ) |      | $ | 17,770 |   |  | $ | 36,684
|                                |  |                                |        |   |      |   |               |  |   |        |   |  |      |          |   |      |   |        |   |  |   |       

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|(1) | BGF reports EBITDA results, which are non-GAAP, as a complement to results provided in accordance with accounting principles generally accepted in the United States (GAAP) and
believes such information provides additional measurement of performance. The definition of Adjusted EBITDA is that used in the Loan and Security Agreement by and among BGF Industries, Inc. as Borrower, The Lenders that are Signatories and Wells
Fargo Foothill, Inc. as the Arranger and Administrative Agent (WFF Loan).
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