GREENVILLE, S.C., Sept. 7 /PRNewswire-FirstCall/ -- JPS Industries, Inc. (Pink Sheets: JPST) today announced results for the third quarter and nine months ended July 30, 2005. For the third quarter of fiscal 2005, JPS reported a net income of $1.0 million, or $0.10 per diluted share, on sales of $42.4 million compared with a net income of $1.3 million, or $0.13 per diluted share, on sales of $42.0 million in the third quarter of fiscal 2004. For the first nine months of fiscal 2005, the Company reported a net income of $3.0 million, or $0.31 per diluted share, on sales of $117.5 million compared with a net income of $2.0 million, or $0.21 per diluted share, on sales of $111.4 million for the same period in fiscal 2004. Michael L. Fulbright, JPS's chairman, president and chief executive officer, stated, "Third quarter was in line with our expectations, though slightly below last year. The results reflect a number of variables within our businesses. We were successful in implementing price increases throughout the Company to cover the raw material increases we had experienced during the first six months of our fiscal year but saw demand weaken in several markets during the latter part of the quarter. These included electronics, commercial and military aircraft, and other defense related markets that affected our JPS Composite Materials and Stevens(R) Urethane businesses. Countering these areas was strength in our Stevens(R) Roofing business and solid results from other industrial markets that are serviced by our Stevens(R) Urethane and JPS Composite Materials product lines." Commenting further, Mr. Fulbright stated, "Looking to the balance of the year, we would expect the softness in the markets we describe above to strengthen from our most recent experience, but remain at levels below those of last year. While raw material cost plateaued in third quarter, it remains unknown at this juncture how oil prices and energy related cost will affect us in the coming months." JPS Industries, Inc. is a major U.S. manufacturer of extruded urethanes, polypropylenes and mechanically formed glass substrates for specialty industrial applications. JPS specialty industrial products are used in a wide range of applications, including: printed electronic circuit boards; advanced composite materials; aerospace components; filtration and insulation products; surf boards; construction substrates; high performance glass laminates for security and transportation applications; plasma display screens; athletic shoes; commercial and institutional roofing; reservoir covers; and medical, automotive and industrial components. Headquartered in Greenville, South Carolina, the Company operates manufacturing locations in Slater, South Carolina; Westfield, North Carolina; and Easthampton, Massachusetts. This press release contains statements that are forward-looking statements regarding future events. These statements are only predictions and there are a number of important factors that could cause future events to differ materially from those expressed in any such forward-looking statements. These factors include, without limitation, the general economic and business conditions affecting the Company's industries, actions of competitors, changes in demand in certain markets, the Company's ability to meet its debt service and pension plan obligations (including its ability to meet the financial obligations in its Credit Agreement), the Company's ability to realize its deferred tax asset, the seasonality of the Company's sales, the volatility of the Company's raw material, claims and energy costs, the Company's dependence on key personnel and certain large customers and other risk factors described from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no responsibility to update the forward- looking statements contained in this release as a result of new information, future events or otherwise. JPS Industries, Inc. is not responsible for changes made to this document by wire services or Internet Services. CONTACT: Charles R. Tutterow Executive Vice President and Chief Financial Officer 864/239-3915 JPS INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended July 30, July 31, July 30, July 31, 2005 2004 2005 2004 NET SALES $42,373 $42,035 $117,504 $111,413 COST OF SALES 35,615 34,493 100,378 92,702 Gross profit 6,758 7,542 17,126 18,711 SELLING, GENERAL & ADMINISTRATIVE EXPENSES 4,848 5,275 11,541 14,884 Operating income 1,910 2,267 5,585 3,827 Interest expense 257 187 722 575 Income before income taxes 1,653 2,080 4,863 3,252 Provision for income taxes 636 806 1,872 1,281 Net income $1,017 $ 1,274 $2,991 $ 1,971 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 9,414,259 9,354,259 9,399,259 9,336,759 Diluted 9,769,530 9,561,442 9,704,059 9,536,692 Basic earnings per common share $0.11 $0.14 $0.32 $0.21 Diluted earnings per common share $0.10 $0.13 $0.31 $0.21 Depreciation $1,266 $1,312 $3,794 $3,988 Capital expenditures $158 $282 $459 $495 Cash taxes paid $2 $3 $10 $3 JPS INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) July 30, October 30, 2005 2004 ASSETS (Unaudited) Current Assets: Cash $1,330 $407 Receivables 24,419 26,670 Inventory 17,462 15,087 Prepaid expenses and other 4,212 5,180 Total current assets 47,423 47,344 Property, plant and equipment, net 26,227 29,478 Other assets 18,298 20,116 Total assets $91,948 $96,938 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $12,697 $11,952 Accrued salaries, benefits and withholdings 1,925 3,602 Accrued pension costs 5,470 9,653 Other accrued expenses 2,825 3,447 Current portion of long-term debt 0 389 Total current liabilities 22,917 29,043 Long-term debt 17,683 16,664 Deferred revenue and postemployment liabilities 32,228 35,187 Total liabilities 72,828 80,894 Shareholders' equity: Common stock: Par value 100 100 Additional paid-in capital 123,367 123,282 Treasury stock (at cost) (1,749) (1,749) Additional minimum pension liability (53,874) (53,874) Accumulated deficit (48,724) (51,715) Total shareholders' equity 19,120 16,044 Total liabilities and shareholders' equity $91,948 $96,938 DATASOURCE: JPS Industries, Inc. CONTACT: Charles R. Tutterow, Executive Vice President and Chief Financial Officer of JPS Industries, Inc., +1-864-239-3915

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