Aldila, Inc. has extended the deadline for shareholders to respond to its pending “Dutch auction” tender offer to acquire shares of its common stock following news of an explosion in one of its factories in China. The new deadline for shareholders to respond will be at 5:00 p.m. New York time, on September 28, 2007, unless extended further.


The decision to extend the deadline was made to be sure shareholders can consider the possible impact of an industrial accident which occurred at the company's facility in Zhuhai, China on Tuesday, September 18, 2007 (local time). The company is continuing to investigate the circumstances surrounding the accident, but preliminary reports indicate an explosion occurred during routine maintenance resulting in the death of one employee and the injury of another. Damage at the facility was limited to a section on the ground floor of a seven story building in an area that contained a refrigeration/storage unit. A portion of the raw material stored in that unit also sustained damage. The company suspended production at the site until completion of an investigation of the event by the local authorities. At this time the company believes production at the facility will resume in a short period of time.

The company does not currently believe these events will have a material affect on its ability to fulfill customers' orders or on its financial results for the current period. The event in China is expected to have no impact on production at the company's facilities in Poway, California, Tijuana, Mexico, or Ho Chi Minh City, Vietnam.