Unifi reported a net loss from continuing operations of $1.3 million or $0.02 per share for the quarter ending September 26, 2004 compared to a net loss of $2.6 million or $0.05 per share for the prior year September quarter.
Net income, including discontinued operations, was a net loss of $22.6 million or $0.43 per share, which includes the operations and associated charges related to the closure of the Company's facility in Ireland.

Net sales from continuing operations for the September quarter of
$180.2 million were up $16.5 million or 10.1% compared to net sales of
$163.7 million for the prior year September quarter. Sales volume from
continuing operations increased 7.4% this quarter over the prior comparable

“The Company recorded an operating profit from continuing operations of
$1.0 million in the current quarter compared to a loss of $1.0 million in the
prior year quarter, indicating that the broad set of actions taken over this
calendar year has strengthened our underlying business,” said Bill Lowe, Chief
Operating Officer and CFO for Unifi. “This also marks the second consecutive
quarter in which we posted an operating profit, which is significant in that
we have accomplished this as raw materials have risen by approximately
25 percent since the prior comparable quarter. There are more challenges
ahead, but we are making steady progress in stabilizing our base business.”

Selling, general and administrative expenses were 5.3% of sales from
continuing operations compared to 7.6% of last year's comparable quarter.
Cash-on-hand at September 26, 2004 was $45.7 million.

“One can clearly see the combined impact of our business building and
consolidation efforts reflected in the operating results of our continuing
operations,” said Brian Parke, Chairman and Chief Executive Officer of Unifi.
“Our cost structure today is closely aligned with current market demands, and
the strength of our balance sheet allows us to pursue strategic business
opportunities. We will continue to be proactive in our efforts to maximize
growth in the global supply chain and manage costs and capacity relative to
market conditions.”

Unifi is a diversified producer and processor of textured yarns. Its
primary business is the texturing, dyeing, twisting, covering, and beaming of
multi-filament polyester and nylon yarns. Unifi's textured yarns are found in
home furnishings, apparel and industrial fabrics, automotive, upholstery,
hosiery, and sewing thread.

                        Financial Statements to Follow

      UNIFI, INC.
      (UNAUDITED) (In Thousands Except Per Share Data)

                                                     For the Quarters Ended
                                                  September 26,  September 28,
                                                     2004               2003

      Net sales                                   $180,155           $163,721
      Cost of goods sold                           169,595            152,262
      Selling, general & administrative expense      9,514             12,423
      Operating profit (loss)                        1,046               (964)
      Interest expense                               4,667              4,741
      Interest income                                  413                742
      Other (income) expense, net                      458                576
      Equity in earnings of
       unconsolidated affiliates                     1,117                257
      Minority interest income                         188                955

      Loss before income tax benefit                (2,361)            (4,327)
      Benefit for income taxes                      (1,105)            (1,730)
      Loss from continuing operations               (1,256)            (2,597)
      Loss from discontinued operations -
       net of tax                                  (21,299)            (1,965)
      Net loss                                    $(22,555)           $(4,562)

      Earnings (losses) per common share
       (basic and diluted):
            Net loss - continuing operations        $(0.02)            $(0.05)
            Net loss - discontinued operations      $(0.41)            $(0.04)

      Average diluted shares outstanding            52,077             52,746