POLYMER GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)

			March 30, 2002			December 29, 2001
			(Unaudited)
A S S E T S
Current assets:
	Cash and equivalents		$	27,097		$	28,231
	Short-term investments			19,265			18,222
	Accounts receivable, net			124,894			125,649
	Inventories			105,784			115,953
	Other			42,116			37,824
		Total current assets		319,156			325,879
Property, plant and equipment, net				692,866			711,567
Intangibles and loan acquisition costs, net				133,249			135,995
Other				59,632			58,773
		Total assets	$	1,204,903		$	1,232,214
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'     (D E F I C I T)
Current liabilities:
	Accounts payable		$	39,820		$	46,384
	Accrued liabilities and other			76,116			62,403
	Short-term borrowings			12,161			12,411
	Current portion of long-term debt			1,076,739			1,077,017
		Total current liabilities		1,204,836			1,198,215
Long-term debt, less current portion				9,533			9,802
Deferred income taxes				48,591			53,106
Other non-current liabilities				19,482			19,953
Shareholders' (deficit):
	Series preferred stock—$.01 par value, 10,000,000 shares authorized, 0 shares issued and outstanding			—			—
	Common stock—$.01 par value, 100,000,000 shares authorized, 32,004,200 shares issued and outstanding at March 30, 2002 and December 29, 2001			320			320
	Non-voting common stock—$.01 par value, 3,000,000 shares authorized, 0 shares issued and outstanding			—			—
	Additional paid-in capital			243,722			243,722
	(Deficit)			(271,510	)		(241,935	)
	Accumulated other comprehensive (loss)			(50,071	)		(50,969	)
				(77,539	)		(48,862	)
		Total liabilities and shareholders' (deficit)	$	1,204,903		$	1,232,214

POLYMER GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, Except Per Share Data)

			Three Months Ended
			March 30, 2002			March 31, 2001
Net sales			$	191,180		$	201,256
Cost of goods sold				162,711			170,194
Gross profit				28,469			31,062
Selling, general and administrative expenses				26,624			30,056
Special charges				2,168			—
Plant realignment costs				176			—
Operating income (loss)				(499	)		1,006
Other expense:
	Interest expense, net			25,753			25,395
	Foreign currency and other			3,321			1,422
				29,074			26,817
Loss before income tax benefit				(29,573	)		(25,811	)
Income tax benefit				—			(7,227	)
Net loss			$	(29,573	)	$	(18,584	)
Net loss per common share:
	Basic:
		Average common shares outstanding		32,004			32,004
		Net loss per common share	$	(0.92	)	$	(0.58	)
	Diluted:
		Average common shares outstanding		32,004			32,004
		Net loss per common share	$	(0.92	)	$	(0.58	)
Cash dividends per common share			$	—		$	0.02

POLYMER GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)

				Three Months Ended
				March 30, 2002			March 31, 2001
Operating activities
	Net loss			$	(29,573	)	$	(18,584	)
	Adjustments to reconcile net loss to net cash (used in) operating activities:
		Depreciation and amortization expense			16,024			20,103
		Foreign currency and other			3,321			1,422
	Changes in operating assets and liabilities:
		Accounts receivable			755			(348	)
		Inventories			10,169			(4,275	)
		Accounts payable and accrued expenses			6,669			(4,940	)
	Other, net				(11,052	)		(4,404	)
			Net cash (used in) operating activities		(3,687	)		(11,026	)
Investing activities—purchases of property, plant and equipment					(2,328	)		(6,615	)
Financing activities
	Proceeds from debt				16			49,206
	Payment of debt				(978	)		(10,297	)
	Dividends to shareholders				—			(640	)
			Net cash provided by (used in) financing activities		(962	)		38,269
Effect of exchange rate changes on cash					5,843			(1,697	)
Net increase (decrease) in cash and equivalents					(1,134	)		18,931
Cash and equivalents at beginning of period					28,231			12,276
Cash and equivalents at end of period				$	27,097		$	31,207