Polymer Group, Inc. Investor Investigation

If you are an investor in Polymer Group, Inc. (OTC:POLGA) shares, and/or have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s):

Polymer Group

Affected Securities:

OTC: POLGA

An investigation on behalf of current investors of Polymer Group, Inc. (OTC:POLGA) over potential breaches of fiduciary duty by the Polymer Group board of directors in the event of agreeing to an unfair takeover was announced.

Media reports surfaced last week announcing that Private-equity firm Blackstone Group LP is in exclusive, early-stage talks to buy Charlotte based Polymer Group Inc. (POLGA). Shares of Polymer Group, Inc. closed 4% higher on Friday, August 13, 2010, or at $21.75 per share, valuing Polymer at about $467 million.

According to the investigation by a law firm the board of directors of Polymer Group will breach their fiduciary duty if they accept an offer that “undervalues the true or intrinsic value of Polymer Group, Inc. (OTC:POLGA)”, if the “process is unfair to the shareholders of Polymer Group, Inc. (POLGA)”, or if they “fail to adequately shop the company before entering into an adequate agreement”.

Reuters and Bloomberg reported on August 10, 2010 that according to an unnamed source familiar with the matter The Blackstone Group L.P. (NYSE:BX) is talks with Polymer Groups’ largest shareholder, Private equity firm MatlinPatterson, to buy Polymer Group. MatlinPatterson owns about 65 percent of Polymer Group, Inc. (OTC:POLGA). According to the source the negotiations are ongoing and an announcement wasn’t imminent.

Polymer Group, Inc., a manufacturer and marketer of engineered materials, focused primarily on the production of nonwovens, reported Total Revenue of $999.78million in 2007, $1.07327billion in 2008, and $882.65million in 2009. Polymer Group, Inc. was able to get out of a Net Loss in 2006 of $34.53million and a Net Loss in 2007 of $41.15million, to a Net Income of $5.35million in 2008 and $18.20million Net Income in 2009.

Since Polymer emerged from bankruptcy in 2003 its shares (POLGA) reached over $30 per share during 2007, but lost during 2008 almost 80% of its value, and ended 2008 at roughly $6 per share. POLGA shares continued to decrease in 2009 to as low as $4.45 per share in March 2009, before seeing an overall upward trend over the past 1.5 years leading to $20 per share on April 09, 2010, and April 23, 2010 after Polymer Group announced its Board of Directors is evaluating strategic alternatives to unlock shareholder value.