Unifi, Inc. will be shutting its recently acquired Dillon, South Carolina facility. The Company currently operates 42 texturing machines at the facility. The Company expects to close the facility by July 31, 2007 and move the entire production to its facility in Yadkinville, North Carolina. The Company acquired the Dillon facility on January 1, 2007 in a transaction valued at approximately $65.2 million.

“The closure of the Dillon, South Carolina facility is consistent with our strategy of making key acquisitions and addressing excess capacity to lower our manufacturing costs. Our largest facility in Yadkinville of over 800,000 square feet has both the footprint and equipment to accommodate the volume currently run in South Carolina. We continue to streamline our product mix and look to maximize our facility utilization rates to lower manufacturing costs to compete in the marketplace,” said Bill Lowe, Chief Operating Officer and Chief Financial Officer for Unifi. “We plan to move some texturing machines into our existing facilities and expect the impact on our customers to be seamless during the transition period.”

The South Carolina facility currently has approximately 355 employees. The Company estimates that it will add approximately 120 employees to its Yadkinville, North Carolina facility to accommodate the additional volume. Cash closure costs, including severance and equipment moves, is expected to be approximately $2.1 million with annual savings of approximately $5.0 million.