EXHIBIT 99.1
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FAB INDUSTRIES, INC.
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NEW YORK, N.Y. -- May 30, 2002 - Fab Industries, Inc. (AMEX:
FIT), a manufacturer of warp and circular knit fabrics, raschel laces and
laminated fabrics, announced that at its annual meeting of stockholders earlier
today its stockholders overwhelmingly approved a plan for a sale of Fab
Industries' business in the context of a corporate liquidation. The Company's
Board of Directors met immediately after the annual meeting and declared an
initial liquidating distribution of $10.00 per share, to be payable on June 24,
2002 with a record date of June 10th.
As previously announced, in light of the ongoing economic
slowdown - particularly in the domestic textile industry - and diminishing
revenues, Fab Industries has been engaged in a concerted effort to explore
various strategic alternatives. In order to maximize stockholder value, the
Company plans to sell its business and will do so as part of a plan of
liquidation. The Company believes that in this way it will be able to distribute
its large cash position, as well as the proceeds of any sale, to stockholders
promptly and in a tax advantageous manner. Fab Industries will continue to
operate its business pending a sale as its management feels that a sale of an
on-going business will maximize stockholder value.
The Company today also reported the re-election of Xxxxxxxx X.
Xxxxx, Xxxxxx X. Xxxxxxxxx and Xxxxxx Xxxxx to its Board of Directors.
Except for the historical information contained herein, the
matters discussed in this news release are forward-looking statements and may
include words such as "anticipates," "believes," "plans," "expects," "future,"
"intends" and similar expressions. These forward-looking statements are not
guarantees of future performance and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
expressed or forecasted in such forward-looking statements. No assurance can be
given that Fab Industries will be successful in pursuing a sale of its assets,
or that the plan of liquidation and dissolution will actually increase
stockholder value. Fab Industries may not be able to find qualified buyers for
its assets. Other potential risks and uncertainties include, without limitation,
the Company's ability to support demand for its goods and services; material
contingencies provided for in a sale of assets; amendment, delay in
implementation or termination of any plan to sell assets and subsequently wind
down Fab Industries' business; delisting of Fab Industries' stock from The
American Stock Exchange; the Company's ability to retain key employees through
the wind down period; and litigation arising as a result of Fab Industries' plan
to wind down its operations. Fab Industries does not undertake any obligation to
publicly update any forward-looking statements to reflect events or
circumstances after the date on which any such statement is made or to reflect
the occurrence of unanticipated events.
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CONTACT INFORMATION:
Xxxxxx Xxxxx Xxxxx Xxxxx
President and Chief Operating Officer Partner
Fab Industries, Inc. Xxxx, Weiss, Rifkind, Xxxxxxx & Xxxxxxxx
(000) 000-0000 (000) 000-0000
xxx0@xxx.xxx xxxxxx@xxxxxxxxx.xxx
