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                                                                    EXHIBIT 99.1

                      CMI ANNOUNCES DEVELOPMENTS REGARDING
                             ITS RESTRUCTURING PLAN
                        WITH COMPANY'S LARGEST CREDITORS
                     PRESS RELEASE -- FOR IMMEDIATE RELEASE


      Columbia, South Carolina, September 26, 2001 - CMI Industries, Inc.
announced that the Company has reached an agreement in principle with an
informal committee of holders of the Company's 9-1/2% Senior Subordinated Notes
to restructure all of the Company's debt and equity pursuant to which the
Company's profitable Elastic Fabrics of America LLC subsidiary will continue as
a going concern and the remainder of the Company's assets will be liquidated in
an orderly fashion. The notes have an outstanding principal balance of
$75,325,000 and represent over 85% of the Company's obligations.

      Said Joseph L. Gorga, President of the Company, "I am pleased that we have
been able to reach an agreement in principle with the Company's bondholders to
complete a restructuring of CMI's debt and equity, and at the same time, protect
the ongoing interests of Elastic Fabrics of America LLC. It is regrettable that
circumstances relating to market conditions for greige fabrics have placed the
Company in such difficult circumstances. I believe this agreement is in the best
interest of all the Company's constituents and will maximize value for the
benefit of all concerned. The Company will now turn its efforts to implementing
the plan on an expeditious basis. I want to again express my sincere
appreciation to our customers, vendors and associates for their continued
support throughout the last few months. We remain committed to being the premier
domestic supplier of elastic fabrics and are excited about moving forward with
our growth initiatives for this business."

      One member of the Noteholder committee expressed satisfaction concerning
this agreement: "this Agreement clears the way for an orderly reorganization in
the best interests of the Noteholders, other unsecured creditors and all of the
Company's stakeholders."

      Under the terms of the restructuring agreement, the Elastics' operations
will continue in the ordinary course without interruption or interference of any
kind, and Elastics' creditors will be paid in full without impairment by the
reorganization of the parent company. Elastics' prospective working capital
requirements will be satisfied from a new separate working capital facility.
CMI's restructuring will be implemented pursuant to a voluntary chapter 11 plan
and is subject to definitive documentation and all approvals required by the
chapter 11 process. CMI's unsecured creditors will receive substantially all of
(i) the proceeds from the liquidation of the Company's non-operating assets,
(ii) new senior notes to be issued by the Company, and (iii) 100% of the equity
in the Company. The parties anticipate that the restructuring will be completed
by early 2002.

      Separately, the Company disclosed that on September 25, 2001, the Company
was served a lawsuit from certain creditors asserting claims of less than
$80,000 and petitioning to have the Company reorganized under Chapter 11 of the
Bankruptcy Code. The Company is reviewing the filing and will respond
appropriately in the near future. The Company and the Noteholder Committee
indicated that the filing was unrelated to, and would have no effect on, the
parties' restructuring agreement. It is anticipated that these creditors will be
treated in the context of the broader agreement applicable to unsecured
creditors, as negotiated with the Noteholders.

      The Company's main operating subsidiary, Elastic Fabrics of America LLC,
manufactures textile products that serve a variety of markets, including the
woven apparel, elasticized knit apparel and industrial/medical markets. The
Company is headquartered in Columbia, South Carolina. Elastic Fabrics of America
LLC operates manufacturing facilities in Greensboro, North Carolina and Stuart,
Virginia. As previously announced, the Company is in the process of closing the
last plant involved in its greige woven fabrics operations. The Company had
consolidated net sales from continuing operations of $85.2 million in 2000.
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      This press release contains statements that are forward-looking statements
within the meaning of applicable federal securities laws and are based upon the
Company's current expectations and assumptions, which are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from those anticipated. Such risks and uncertainties include, among other
things, global economic activity, the success of the Company's overall business
strategy, the Company's relationships with its principal customers and
suppliers, the demand for textile products, the cost and availability of raw
materials and labor, the level of the Company's indebtedness and the exposure to
interest rate fluctuations, governmental legislation and regulatory changes, and
the long-term implications of regional trade blocs and the effect of quota
phase-out and lowering of tariffs under the WTO trade regime, restrictions on
the Company's business and operations imposed by the Company's lenders and the
court processes, the ability of the Company to complete its agreement in
principle and the Company's ability to operate under current industry
conditions.

      For further information, contact James A. Ovenden, Executive Vice
President and Chief Financial Officer at 803-771-4434.