Foamex International Closes $320 Mil Refinance

LINWOOD, PA, August 18, 2003 – Foamex International Inc. (NASDAQ: FMXI), the leading manufacturer of flexible polyurethane and advanced polymer foam products in North America, today announced that Foamex L.P. has closed a comprehensive refinancing of its bank debt. The refinancing includes a new $240 million asset-based credit facility and an $80 million secured term loan. The new facilities will be used to replace Foamex L.P.’s existing $262 million credit facility and provide increased availability to fund operations. The refinancing extends approximately $190 million of debt payments, which would have been due at various times between 2004 and 2006, into 2007. In addition, the new loans will result in increased financial flexibility and liquidity for the Company. Foamex noted that the closing of the refinancing was delayed until today due to the power outage in the North East.

The new credit facility matures in April 2007, and includes a $190 million revolver commitment and $50 million term loan. The new facility was primarily arranged and syndicated by Bank of America, N.A. Silver Point Finance, LLC provided the separate $80 million secured term loan, which also matures in April 2007.

“This refinancing significantly strengthens our financial position. It provides a major reduction in debt maturities over the next three years and gives us substantially increased financial flexibility and liquidity,” said Thomas Chorman, President and Chief Executive Officer of Foamex. “We are pleased to have the support and confidence of the financial institutions that are providing these facilities.”

As a result of the refinancing, the Company will recognize a non-cash charge of approximately $13 million in the 2003 third quarter for the write-off of debt issuance cost associated with the replaced bank facilities.