Paragon Trade Brands Acquires Majority Interest In Paragon-Mabesa International S.A. de C.V.

Apr 18, 2001, 01:00 ET from Paragon Trade Brands, Inc.

    NORCROSS, Ga., April 18 /PRNewswire/ --
 Paragon Trade Brands, Inc. (OTC Bulletin Board:   PGTR) today announced it had
 completed transactions with its Mexican joint venture partner to acquire the
 majority interest in Paragon-Mabesa International S.A. de C.V. ("PMI") and to
 realign certain other interests.  PMI, located in Tijuana, Mexico,
 manufactures baby diapers for sale by Paragon in the United States and Canada.
     As a result of these transactions, Paragon:
 
     *  increased its ownership in PMI from 49 percent to 51 percent and the
        Mexican shareholder reduced its ownership interest accordingly.  As a
        result, beginning in the first fiscal quarter of 2001, Paragon will
        change how it accounts for PMI from the equity method to the
        consolidation method;
 
     *  increased its ownership in Grupo P.I. Mabe, S.A. de C.V. ("Grupo Mabe")
        from 15 percent to 20 percent and the Mexican shareholder reduced its
        ownership interest accordingly.  As a result, beginning in the first
        fiscal quarter of 2001, Paragon will change how it accounts for its
        investment in Grupo Mabe from the cost method to the equity method; and
 
     *  reduced its ownership in Stronger Corporation S.A. ("Stronger") from 49
        percent to 20 percent and the co-shareholder in Stronger increased its
        ownership interest accordingly.  Paragon will continue to account for
        its investment in Stronger under the equity method.
 
     Commenting on the ownership changes, Chairman and Chief Executive Officer,
 Michael Riordan said, "These steps represent a further commitment to our Latin
 American operations.  Gilberto Marin Quintero, Chairman of Grupo Mabe, and his
 team provide outstanding leadership to our joint venture operations and we are
 pleased to increase our equity participation in Grupo Mabe."  Marin commented,
 "We continue to value our relationship with Paragon as together we grow our
 market presence in Latin America."
     Paragon Trade Brands is the leading manufacturer of store brand infant
 disposable diapers in the United States and, through its wholly owned
 subsidiary, Paragon Trade Brands (Canada) Inc., is the leading marketer of
 store brand infant disposable diapers in Canada.  Paragon manufactures a line
 of premium and economy diapers and training pants, which are distributed
 throughout the United States and Canada, primarily through grocery and food
 stores, mass merchandisers, warehouse clubs, toy stores and drug stores that
 market the products under their own store brand names.  Through its
 international joint ventures, Paragon is also a leading supplier of infant
 disposable diapers and other absorbent personal care products in Mexico,
 Argentina, Brazil, Colombia and China.
     Grupo Mabe is the holding company of a group of entities in Mexico, whose
 principal activity is the manufacture of baby diapers and other sanitary
 articles.
     Stronger is a financial investment corporation that owns several companies
 that manufacture, distribute and sell disposable diapers, skin lotions for
 children and other personal care products primarily in Argentina, Colombia and
 Brazil.
     Statements made in this press release, other than those concerning
 historical information, should be considered forward-looking statements.  Such
 statements are subject to certain risks and uncertainties that could cause
 actual results to differ materially from those expressed in the Company's
 forward-looking statements, including a risk that the transactions described
 in this press release do not close as planned.  Factors which could affect the
 Company's financial results, including, but not limited to:  increased raw
 material prices and product costs; new product and packaging introductions by
 competitors; increased price and promotion pressure from competitors; new
 competitors in the market; increased financial leverage; and patent
 litigation, are described in the Company's periodic filings with the
 Securities and Exchange Commission, including the Annual Report on Form 10-K.
 Readers are cautioned not to place undue reliance on the forward-looking
 statements contained herein, which speak only as of the date hereof, and which
 are made by management pursuant to the "safe harbor" provisions of the Private
 Securities Litigation Reform Act of 1995.
 
 

SOURCE Paragon Trade Brands, Inc.
    NORCROSS, Ga., April 18 /PRNewswire/ --
 Paragon Trade Brands, Inc. (OTC Bulletin Board:   PGTR) today announced it had
 completed transactions with its Mexican joint venture partner to acquire the
 majority interest in Paragon-Mabesa International S.A. de C.V. ("PMI") and to
 realign certain other interests.  PMI, located in Tijuana, Mexico,
 manufactures baby diapers for sale by Paragon in the United States and Canada.
     As a result of these transactions, Paragon:
 
     *  increased its ownership in PMI from 49 percent to 51 percent and the
        Mexican shareholder reduced its ownership interest accordingly.  As a
        result, beginning in the first fiscal quarter of 2001, Paragon will
        change how it accounts for PMI from the equity method to the
        consolidation method;
 
     *  increased its ownership in Grupo P.I. Mabe, S.A. de C.V. ("Grupo Mabe")
        from 15 percent to 20 percent and the Mexican shareholder reduced its
        ownership interest accordingly.  As a result, beginning in the first
        fiscal quarter of 2001, Paragon will change how it accounts for its
        investment in Grupo Mabe from the cost method to the equity method; and
 
     *  reduced its ownership in Stronger Corporation S.A. ("Stronger") from 49
        percent to 20 percent and the co-shareholder in Stronger increased its
        ownership interest accordingly.  Paragon will continue to account for
        its investment in Stronger under the equity method.
 
     Commenting on the ownership changes, Chairman and Chief Executive Officer,
 Michael Riordan said, "These steps represent a further commitment to our Latin
 American operations.  Gilberto Marin Quintero, Chairman of Grupo Mabe, and his
 team provide outstanding leadership to our joint venture operations and we are
 pleased to increase our equity participation in Grupo Mabe."  Marin commented,
 "We continue to value our relationship with Paragon as together we grow our
 market presence in Latin America."
     Paragon Trade Brands is the leading manufacturer of store brand infant
 disposable diapers in the United States and, through its wholly owned
 subsidiary, Paragon Trade Brands (Canada) Inc., is the leading marketer of
 store brand infant disposable diapers in Canada.  Paragon manufactures a line
 of premium and economy diapers and training pants, which are distributed
 throughout the United States and Canada, primarily through grocery and food
 stores, mass merchandisers, warehouse clubs, toy stores and drug stores that
 market the products under their own store brand names.  Through its
 international joint ventures, Paragon is also a leading supplier of infant
 disposable diapers and other absorbent personal care products in Mexico,
 Argentina, Brazil, Colombia and China.
     Grupo Mabe is the holding company of a group of entities in Mexico, whose
 principal activity is the manufacture of baby diapers and other sanitary
 articles.
     Stronger is a financial investment corporation that owns several companies
 that manufacture, distribute and sell disposable diapers, skin lotions for
 children and other personal care products primarily in Argentina, Colombia and
 Brazil.
     Statements made in this press release, other than those concerning
 historical information, should be considered forward-looking statements.  Such
 statements are subject to certain risks and uncertainties that could cause
 actual results to differ materially from those expressed in the Company's
 forward-looking statements, including a risk that the transactions described
 in this press release do not close as planned.  Factors which could affect the
 Company's financial results, including, but not limited to:  increased raw
 material prices and product costs; new product and packaging introductions by
 competitors; increased price and promotion pressure from competitors; new
 competitors in the market; increased financial leverage; and patent
 litigation, are described in the Company's periodic filings with the
 Securities and Exchange Commission, including the Annual Report on Form 10-K.
 Readers are cautioned not to place undue reliance on the forward-looking
 statements contained herein, which speak only as of the date hereof, and which
 are made by management pursuant to the "safe harbor" provisions of the Private
 Securities Litigation Reform Act of 1995.
 
 SOURCE  Paragon Trade Brands, Inc.