Norfet, Limited Partnership Declares Intention to Participate in Rights Offering by Tefron

Dec 08, 2009, 13:37 ET from Tefron Ltd

MISGAV, Israel, December 8 /PRNewswire-FirstCall/ -- Tefron Ltd. (OTC: TFRFF.OB; TASE:TFRN), a leading producer of seamless intimate apparel and engineered-for-performance (EFPTM) active wear, today announced that Norfet, Limited Partnership ("Norfet"), the holder of approximately 21% of Tefron's outstanding ordinary shares, notified Tefron that within the framework of Tefron's proposed rights offering, if consummated, Norfet or an entity on its behalf intends to participate in the proposed rights offering and to acquire rights in the amount of up to $4 million, subject to its examination of the commercial terms of the rights offering. It should be noted that the Company has not yet made a final decision regarding the execution of a rights offering or its terms.

Norfet's decision to participate in the proposed rights offering is subject to the following cumulative conditions: submission by Tefron of a business plan for the year 2010 to its three bank lenders by the end of the year 2009 (as reported by Tefron in its press release dated December 3, 2009) and the acceptance by the bank lenders of such business plan; Tefron reaching a comprehensive settlement with its bank lenders that would permit Tefron to continue its operations; and obtaining the necessary corporate approvals and authorizations by Norfet for the investment by Norfet. There is no assurance that these conditions will satisfied or that Norfet will in fact participate in the proposed rights offering.

About Tefron

Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swim wear sold throughout the world by such name-brand marketers as Victoria's Secret, Nike, Target, The Gap, J. C. Penney, Maidenform, lululemon Athletica, Warnaco/Calvin Klein, Patagonia, Reebok, Swimwear Anywhere, Abercombie&Fitch , and El Corte Englese, as well as other well known retailers and designer labels. The company's product line includes knitted briefs, bras, tank tops, boxers, leggings, crop, T-shirts, nightwear, bodysuits, swim wear, beach wear and active-wear.

This press release contains certain forward-looking statements, within the meaning of Section 27A of the US Securities Act of 1933, as amended, Section 21E of the US Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995, with respect to the Company's business, financial condition and results of operations. We have based these forward-looking statements on our current expectations and projections about future events.

Words such as "believe," "anticipate," "expect," "intend," "will," "plan," "could," "may," "project," "goal," "target," and similar expressions often identify forward-looking statements but are not the only way we identify these statements. Except for statements of historical fact contained herein, the matters set forth in this press release regarding our future performance, plans to increase revenues or margins and any statements regarding other future events or future prospects are forward-looking statements.

These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including, but not limited to:

    - the effect of the worldwide recession on our sales to our
      customers in the United States and in Europe and on our ability to
      finance our operations;
    - our customers' continued purchase of our products in the same
      volumes or on the same terms;
    - the cyclical nature of the clothing retail industry and the
      ongoing changes in fashion preferences;
    - the competitive nature of the markets in which we operate,
      including the ability of our competitors to enter into and compete in
      the seamless market in which we operate;
    - the potential adverse effect on our business resulting from our
      international operations, including increased custom duties and import
      quotas (e.g., in China, where we manufacture for our swimwear
    - fluctuations in inflation and currency rates;
    - the potential adverse effect on our future operating efficiency
      resulting from our expansion into new product lines with more
      complicated products, different raw materials and changes in market
    - the purchase of new equipment that may be necessary as a result
      of our expansion into new product lines;
    - our dependence on our suppliers for our machinery and the
      maintenance of our machinery;
    - the fluctuations costs of raw materials; our dependence on
      subcontractors in connection with our manufacturing process;
    - our failure to generate sufficient cash from our operations to
      pay our debt;
    - political, economic, social, climatic risks, associated with
      international business and relating to operations in Israel;

As well as certain other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


    Company Contact:
    Eran Rotem
    Chief Financial Officer

SOURCE Tefron Ltd