Unifi, Inc. Calls for Redemption of its Senior Secured Notes; Enters into Commitment Letters for Senior Secured Credit Facility and Term Loan

Unifi, Inc.

announced today that it is calling for redemption in full on May 24, 2012 the remaining principal amount of $123,722,000 of its outstanding 11.5% Senior Secured Notes due 2014 (the "Notes"). The funds for the redemption will be provided by a new senior secured credit facility and term loan described below. As a result of the redemptions and new facility and term loan, the Company will extend the maturity profile of its long-term indebtedness to May 2017 and expects approximately $9 million of annual interest expense savings compared to the fiscal year ended June 24, 2012. In accordance with the terms of the indenture governing the Notes (the "Indenture"), the redemption price for the Notes will be 100% of the principal amount of the redeemed Notes, plus accrued and unpaid interest. A formal notice of redemption will be sent separately to the holders of the Notes, in accordance with the terms of the Indenture. The Company plans to finance this redemption using approximately $22 million of cash-on-hand, $60 million of borrowings under the new revolving credit facility and $80 million of borrowings under the term loans described below.