Unifi reported a net loss from continuing operations of $1.8 million or 4 cents per share for the quarter ending March 27, 2005 compared to a net loss of $33.6 million or 65 cents per share for the prior year. Net income for the current quarter, was a net loss of $1.9 million or 4 cents per share compared to a net loss, including discontinued operations, of $50.0 million or 96 cents per share for the prior year March quarter.

Net sales from continuing operations for the March quarter, which include sales from the Kinston, North Carolina based INVISTA polyester manufacturing assets acquired in September 2004, were $208.3 million, an increase of $35.8 million or 20.8% compared to net sales of $172.5 million for the prior year March quarter.

Selling, general and administrative (SG&A) expenses were 5.6 percent of sales from continuing operations for the March quarter and 5.2 percent for the first nine months of fiscal 2005, which compare to 7.3 percent for both the prior year March quarter and prior year-to-date. Expenses related to Sarbanes-Oxley compliance and the write-off of certain transactional expenses increased SG&A as a percent of sales from continuing operations for the quarter ended March 27, 2005 compared to the quarter ended December 26, 2004. Cash-on-hand as of March 27, 2005, including restricted cash of $2.8 million, was $58.2 million, up $5.2 million from the previous quarter.

“Our sales volume and operating results for the current quarter demonstrate the progress that we continue to make on many important operational fronts, including the changing of our product mix to more profitable products, the transition in Kinston and the on-going reduction of inventory,” said Bill Lowe, Chief Operating Officer and CFO for Unifi. “These efforts will continue throughout the current quarter to position our next fiscal year as a much stronger one, both in our balance sheet and operationally, which will provide us with even greater flexibility to respond to the changes in our industry.”

Net sales from continuing operations for the first nine months of fiscal 2005, which include sales from the Kinston, North Carolina based INVISTA polyester manufacturing assets acquired in September 2004, were $596.9 million, an increase of $94.3 million or 18.8 percent over net sales of $502.6 million for the comparable prior year period.

The Company reported a net loss from continuing operations of $7.8 million or $0.15 per share for the first nine months of fiscal 2005, which compares favorably to a net loss of $43.2 million or $0.83 per share for the comparable prior year period. Net income, including discontinued operations and extraordinary gain, for the first nine months of fiscal 2005, was a net loss of $32.2 million or $0.62 per share compared to a net loss of $63.8 million or $1.22 per share for the comparable prior year period.

“Our ongoing investments in technology, innovation, and premium value- added products have us well-situated to maintain a very strong base of business in the Americas, even with the recent removal of quotas,” said Brian Parke, Chairman and CEO for Unifi. “The sale of the land, building, and equipment in Ireland remains on course, and the timing of the transactions have us fully positioned to fund the upcoming joint venture in China that will enable us to participate in the growth in the Asian market.”





    UNIFI, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited) (In Thousands Except Per Share Data)

                                        For the Quarters  For the Year to Date
                                             Ended           Periods Ended
                                      March 27, March 28,  March 27, March 28,
                                         2005      2004      2005      2004

     Net sales                         $208,318  $172,526  $596,946  $502,558
     Cost of sales                      199,211   162,965   567,593   476,489
     Selling, general & administrative
      expense                            11,746    12,537    31,273    36,747
     Write down of long lived assets          -    25,241         -    25,241
     Goodwill impairment                      -    13,461         -    13,461
     Operating profit (loss)             (2,639)  (41,678)   (1,920)  (49,380)
     Interest expense                     5,257     4,741    15,218    14,271
     Interest income                       (514)     (635)   (1,436)   (1,861)
     Other (income) expense, net           (277)   (2,623)    3,457    (1,632)
     Equity in (earnings) losses
      of unconsolidated affiliates       (4,419)    6,669    (6,210)    6,558
     Minority interest (income) expense      53    (4,755)     (444)   (6,831)
     Restructuring charges                    -     6,017         -     6,817
     Loss from continuing operations
      before income taxes                (2,739)  (51,092)  (12,505)  (66,702)
     Benefit for income taxes              (896)  (17,491)   (4,711)  (23,476)
     Loss from continuing operations     (1,843)  (33,601)   (7,794)  (43,226)
     Loss from discontinued
      operations - net of taxes          (1,429)  (16,391)  (25,779)  (20,548)
     Loss before extraordinary gain      (3,272)  (49,992)  (33,573)  (63,774)
     Extraordinary gain - net of
      taxes of $0                         1,342         -     1,342         -
     Net loss                           $(1,930) $(49,992) $(32,231) $(63,774)

     Earnings (losses) per common share:
            Net loss - continuing
             operations                  $(0.04)   $(0.65)   $(0.15)   $(0.83)
            Net loss - discontinued
             operations                  $(0.03)   $(0.31)   $(0.50)   $(0.39)
            Extraordinary gain            $0.03        $-     $0.03        $-
            Net loss                     $(0.04)   $(0.96)   $(0.62)   $(1.22)

     Average basic and diluted
      shares outstanding                  52,125    52,075    52,099    52,306