Press release

Avgol Nonwovens parent company announces IPO

TEL AVIV, Jan. 31, 2007 (Press Release) - Avgol Industries 1953, parent company of Avgol Nonwovens Ltd., Tel Aviv, Israel, conducted a successful IPO of both equity and debt securities on the Tel Aviv Stock Exchange on the 18th of January 2007. The trading of their securities commenced on Monday January 22nd on the Tel Aviv Exchange.

The IPO portion raised USD $28MM for Avgol by selling 20% of new shares and options to the public, which maintains management control by the current Avgol ownership.
The bonds portion raised was USD $52MM and is at a fixed rate at 5.2%.
The proceeds from the bonds will be used to replace some of the bank debt which had been accrued by Avgol to acquire Unifi Nonwovens in Mocksville, NC in June 2001, including the subsequent expansions in 2004 and 2005 at this factory.
The Avgol Mocksville, NC factory is home to three 4.2 meter wide Reifenhauser five beam SSMMS spunmelt machines operating at full capacity of 45,000MT per year.

The equity proceeds will be used to fund Avgol’s ongoing global expansion initiatives, including the opening of their new factory in the Tula Region of Russia in the fall of 2007.
The Russia factory will supply the growing hygiene and industrial markets currently supplied from Avgol’s factory in Israel.

Avgol will be operating four factories in Israel, USA, China and Russia, all utilizing Reifenhauser technology with 95,000MT per year total production capacity.