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<SEC-DOCUMENT>0000950123-10-116924.txt : 20101229
<SEC-HEADER>0000950123-10-116924.hdr.sgml : 20101229
<ACCEPTANCE-DATETIME>20101229080133
ACCESSION NUMBER:		0000950123-10-116924
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20101228
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20101229
DATE AS OF CHANGE:		20101229

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNIFI INC
		CENTRAL INDEX KEY:			0000100726
		STANDARD INDUSTRIAL CLASSIFICATION:	TEXTILE MILL PRODUCTS [2200]
		IRS NUMBER:				112165495
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10542
		FILM NUMBER:		101276922

	BUSINESS ADDRESS:	
		STREET 1:		7201 WEST FRIENDLY RD
		STREET 2:		P O BOX 19109
		CITY:			GREENSBORO
		STATE:			NC
		ZIP:			27419-9109
		BUSINESS PHONE:		9192944410

	MAIL ADDRESS:	
		STREET 1:		7201 W FRIENDLY RD
		STREET 2:		PO BOX 19109
		CITY:			GREENSBORO
		STATE:			NC
		ZIP:			24719-9109

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AUTOMATED ENVIRONMENTAL SYSTEMS INC
		DATE OF NAME CHANGE:	19720906
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g25659e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><!-- xbrl,dc --><BR>
<B>Date of Report (Date of earliest event reported):<BR>
December&nbsp;28, 2010</B><BR>
<!-- /xbrl,dc --></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>UNIFI, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>New York</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-10542</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>11-2165495</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other Jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>7201 West Friendly Avenue</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Greensboro, North Carolina</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>27410</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Registrant&#146;s telephone number, including area code: <B>(336)&nbsp;294-4410</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Not Applicable<BR></B>
(Former Name or Former Address, if Changed Since Last Report)
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!--TOC-->
<!--/TOC-->




<!-- link1 "ITEM 8.01. OTHER EVENTS" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 8.01. OTHER EVENTS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;28, 2010, Unifi, Inc. (the &#147;Registrant&#148;) issued a press release announcing that
the Registrant commenced a tender offer to purchase for cash any and all of its 11<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% Senior Secured
Notes due 2014 (CUSIP No.&nbsp;904677AG6) (the &#147;Notes&#148;), upon the terms and subject to the conditions
set forth in the Offer to Purchase and Consent Solicitation Statement, dated December&nbsp;28, 2010, and
in the related Letter of Transmittal and Consent. In connection with the tender offer, and on the
terms and subject to the conditions set forth in such Offer to Purchase and Consent Solicitation
Statement and such Letter of Transmittal and Consent, the Registrant is soliciting consents of
holders of the Notes to authorize the elimination of most of the restrictive covenants and certain
of the events of default contained in the indenture governing the Notes and the release of the
security for the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of such press release is attached hereto as Exhibit&nbsp;99.1 and is incorporated herein by
reference.
</DIV>
<!-- link1 "ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(d)&nbsp;Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3">EXHIBIT NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">DESCRIPTION OF EXHIBIT</TD>
</TR>
<TR style="font-size: 6pt">
<TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Press Release of Unifi, Inc., dated December&nbsp;28, 2010,
announcing the tender offer for Unifi, Inc.&#146;s 11<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% Senior
Secured Notes due 2014.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "SIGNATURES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>UNIFI, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/S/ CHARLES F. MCCOY
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Charles F. McCoy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Vice President, Secretary and General Counsel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: December&nbsp;29, 2010
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX TO EXHIBITS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3">EXHIBIT NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">DESCRIPTION OF EXHIBIT</TD>
</TR>
<TR style="font-size: 6pt">
<TD>&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Press Release of Unifi, Inc., dated December&nbsp;28, 2010,
announcing the tender offer for Unifi, Inc.&#146;s 11<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% Senior
Secured Notes due 2014.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>g25659exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="g25659g2565901.gif" alt="(UNIFI LOGO)">
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>For more information, contact:</B><BR>
Ronald L. Smith<BR>
Chief Financial Officer<BR>
(336)&nbsp;316-5545
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Unifi, Inc. Commences Cash Tender Offer and Related<BR>
Consent Solicitation for Outstanding Debt Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>GREENSBORO, N.C., &#151; December&nbsp;28, 2010 </B>- Unifi, Inc. (NYSE: UFI) (the &#147;Company&#148;), announced
today that it is commencing a cash tender offer for any and all of its outstanding 11<FONT style="FONT-size: 70%"><SUP>1</SUP></FONT>/<FONT style="FONT-size: 60%">2</FONT>% Senior
Secured Notes due 2014 (CUSIP No.&nbsp;904677AG6) (the &#147;Notes&#148;), upon the terms and subject to the
conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated the date
hereof (as it may be amended or supplemented from time to time, the &#147;Statement&#148;), and in the
related Letter of Transmittal and Consent (as it may be amended or supplemented from time to time,
the &#147;Letter of Transmittal&#148; and, collectively with the Statement, the &#147;Offer Documents&#148;). In
connection with the tender offer, and on the terms and subject to the conditions set forth in the
Offer Documents, the Company is soliciting consents of holders of the Notes to authorize the
elimination of most of the restrictive covenants and certain of the events of default contained in
the indenture governing the Notes and the release of the security for the Notes. The Company
intends to use the proceeds from a $140.0&nbsp;million debt financing, together with borrowings under
the Company&#146;s existing secured revolving credit facility or available cash, or a combination
thereof, to fund the tender.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The consent payment deadline is 5:00 p.m., New York City time, on January&nbsp;11, 2011 (such time and
date, as it may be extended, the &#147;Consent Payment Deadline&#148;), and the tender offer will expire at
12:00 midnight, New York City time, on January&nbsp;26, 2011 (such time and date, as it may be extended,
the &#147;Expiration Time&#148;), in each case unless earlier terminated by the Company. Notes tendered may
be withdrawn at any time at or before the Consent Payment Deadline but not thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The total consideration for each $1,000 principal amount of Notes validly tendered at or before the
Consent Payment Deadline and purchased pursuant to the tender offer will be $1,060, which includes
a payment of $30 per $1,000 principal amount of Notes payable only in respect of Notes tendered
with consents at or before the Consent Payment Deadline. Holders validly tendering Notes after the
Consent Payment Deadline but at or before the Expiration Time will be eligible to receive only the
tender offer consideration of $1,030 per $1,000 principal amount of Notes, namely an amount equal
to the total consideration less the consent payment. In addition, holders whose Notes are
purchased in the tender offer will receive accrued and unpaid interest in respect of their
purchased Notes from the last interest payment date to, but not including, the applicable payment
date for the Notes. Tenders of Notes will be accepted only in principal amounts of $2,000 or
integral multiples of $1,000 in excess thereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">-continued-
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="g25659g2565901.gif" alt="(UNIFI LOGO)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Unifi, Inc. Commences Cash Tender Offer and Related Consent Solicitation for Outstanding Debt
Securities &#151;  Page 2</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company has reserved the right, at any time following the Consent Payment Deadline but
prior to the Expiration Time (the &#147;Early Acceptance Date&#148;), to accept for purchase all Notes
validly tendered and not validly withdrawn on or before the Early Acceptance Date. If the Company
elects to exercise this option, the Company will pay the total consideration or tender offer
consideration, as the case may be, for the Notes accepted for purchase at the Early Acceptance Date
promptly following the acceptance of Notes for purchase (the date of such payment being referred to
as the &#147;Early Payment Date&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject to the terms and conditions of the tender offer being satisfied or waived, the Company
will, after the Expiration Time (the &#147;Final Acceptance Date&#148;), accept for purchase all Notes
validly tendered at or before the Expiration Time (and not validly withdrawn at or before the
Consent Payment Deadline) (or if the Company has exercised its early purchase option described
above, all Notes validly tendered after the Early Acceptance Date and at or before the Expiration
Time). The Company will pay the total consideration or tender offer consideration, as the case may
be, for Notes accepted for purchase at the Final Acceptance Date promptly following the acceptance
of Notes for purchase on the Final Acceptance Date (the date of such payment being referred to as
the &#147;Final Payment Date&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s obligation to consummate the tender offer is subject to the satisfaction or waiver of
certain conditions, which are more fully described in the Statement, including, among others, a
financing condition that the Company receive proceeds of at least $140.0&nbsp;million from a debt
financing on terms satisfactory to the Company. The tender offer is not conditioned upon receipt
of the requisite consents to authorize the amendment of the indenture to eliminate most of the
restrictive covenants and certain events of default (consents in respect of a majority of the
outstanding Notes are required for these amendments) or the release of the security for the Notes
(consents in respect of 75% of the outstanding Notes are required for this release). The Company
currently intends, but is not obligated, to redeem any Notes that remain outstanding after the
completion of the tender offer at a redemption price of 105.75% of the principal amount thereof,
plus accrued and unpaid interest to, but not including, the redemption date. If the Company
consummates the tender offer but purchases less than $140.0&nbsp;million in aggregate principal amount
of Notes, it currently also intends upon such consummation to satisfy and discharge its obligations
with respect to any Notes that were not tendered or accepted for purchase in the tender offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The depositary and information agent for the tender offer and consent solicitation is D.F. King &#038;
Co., Inc. The exclusive dealer manager for the tender offer and solicitation agent for the consent
solicitation is J.P. Morgan Securities LLC ((800) 245-8812 (toll-free) and (212)&nbsp;270-1200
(collect)).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">-continued-
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="g25659g2565901.gif" alt="(UNIFI LOGO)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Unifi, Inc. Commences Cash Tender Offer and Related Consent Solicitation for Outstanding Debt
Securities &#151;  Page 3</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Offer Documents will be distributed to holders of Notes promptly. Holders with questions
or who would like additional copies of the offer documents may call the information agent, D.F.
King &#038; Co., Inc, toll-free at (800)&nbsp;769-7666.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This news release is for informational purposes only and does not constitute an offer to buy or the
solicitation of an offer to sell the Notes. The tender offer and the consent solicitation are
being made only pursuant to the Offer Documents that the Company will be distributing to
noteholders promptly. Noteholders and investors should read carefully the Offer Documents because
they contain important information, including the various terms of and conditions to the tender
offer and the consent solicitation. None of the Company, the dealer manager and the solicitation
agent, the depositary, the information agent or their respective affiliates is making any
recommendation as to whether or not holders should tender all or any portion of their Notes in the
tender offer or deliver their consents in the consent solicitation. This news release does not
constitute an offer to sell or a solicitation of an offer to buy any securities that may be sold
pursuant to the proposed debt financing. Any securities that may be sold pursuant to the proposed
debt financing are not expected to be registered under the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unifi, Inc. (NYSE: UFI) is a leading diversified producer and processor of multi-filament polyester
and nylon textured yarns and related raw materials. The Company adds value to the supply chain and
enhances consumer demand for its products through the development and introduction of branded yarns
that provide unique performance, comfort and aesthetic advantages. Key Unifi brands include, but
are not limited to: Sorbtek<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, A.M.Y.<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, Mynx<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> UV,
Reflexx<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>, MicroVista<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> and Satura<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP>. Unifi&#146;s yarns and brands are
readily found in home furnishings, apparel, legwear, and sewing thread, as well as industrial,
automotive, military, and medical applications. For more information about Unifi, visit
www.unifi.com.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This news release contains &#147;forward-looking statements.&#148; You can identify forward-looking
statements by the fact that these statements do not relate strictly to historical or current
matters. Rather, forward-looking statements include, but are not limited to, any statement that
may predict, forecast, indicate or imply future results, performance, achievements or events.
Forward-looking statements may contain words such as &#147;believe,&#148; &#147;anticipate,&#148; &#147;expect,&#148; &#147;estimate,&#148;
&#147;intend,&#148; &#147;project,&#148; &#147;plan,&#148; &#147;will,&#148; or words or phrases of similar meaning. Because
forward-looking statements reflect the Company&#146;s current views with respect to future events and
are based on assumptions, these statements are inherently subject to risks and uncertainties. Many
factors could affect our forward-looking statements, including, among others, the completion of the
tender offer, the receipt of consents to approve the proposed amendments to the indenture governing
the notes and the release of the security for the notes, and the factors described under the
caption &#147;Risk Factors&#148; in documents that we file with the SEC. New risk factors can emerge from
time to time. It is not possible for us to predict all of these risks, nor can we assess the
extent to which any factor, or combination of factors, may cause actual results to differ from
those contained in forward-looking statements. Given these risks and uncertainties, actual future
results may be materially different from what we plan or expect. We will not update
forward-looking statements, even if our situation changes in the future, except as required by
federal securities laws.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">-end-
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<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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