North Carolina
Industrial Commission

MEMORANDUM

TO:         All Interested Parties

FROM:   Chairman Buck Lattimore

DATE:    April 8, 2002

RE:         Guilford Mills, Inc. Bankruptcy

            Guilford Mills, Inc., together with its domestic subsidiaries, has filed voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of New York. Guilford Mills and its subsidiaries are self-insured for workers’ compensation claims in the State of North Carolina.

            Our best current understanding is that Guilford Mills, Inc. is continuing to process and pay all workers’ compensation claims.

            If any claimant does not receive benefits to which they are lawfully entitled or should benefits awarded be suspended or terminated for unexplained reasons, please notify the Industrial Commission. Questions or concerns regarding Guilford Mills, Inc. claims should be directed to: Stephen T. Gheen, Chief Deputy Commissioner, 919-807-2540 or gheen@ind.commerce.state.nc.us. Due to the volume of inquiries, email communication is requested if possible, though not required.

            The Industrial Commission website (www.comp.state.nc.us) will be updated as needed with additional information.