MISGAV, Israel, September 17 /PRNewswire-FirstCall/ -- Tefron Ltd. (OTC:TFRFF)(TASE:TFRN), a leading producer of seamless intimate apparel and engineered-for-performance (EFPTM) active wear, announced today that the special committee that was appointed by the Company's board of directors following the resignation of Mr. Michal Korman has concluded its work. As announced on June 22, 2009, Mr. Korman raised claims regarding the conduct of management of the Company and the communication between management and the Company's board of directors. The special committee examined management's projections for the budget for the year 2009 and the communication between management and the members of the Board of Directors. The special committee concluded that management's projections as presented to the Board of Directors were reasonable and were based on reasonable data. Nevertheless, the special committee recommended that, in the future, when presenting the annual budget to the board of directors for approval, management should present the range of projections that management considered in preparing the budget and address the differences between such projections. In addition, the special committee recommended that the Company's Board of Directors establish a policy for conveying information from management to the members of the Board of Directors (which would address, among other things, the manner in which the information is transferred, the timing for transfer of information and the type of information to be transferred), including updating members of the Board of Directors on an ongoing basis of any material changes that occurred in the condition of the Company. The Company will submit an unofficial translation of the full report of the special committee on Form 6-K. About Tefron Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swimwear 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, swimwear, 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. 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 failure of any of our principal customers to satisfy its payment obligations to us; - 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 division) - 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 trends; - 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. Contacts Company Contact: Eran Rotem Chief Financial Officer +972-4-990-0803 DATASOURCE: Tefron Ltd CONTACT: Contacts - Company Contact: Eran Rotem, Chief Financial Officer, +972-4-990-0803,

Copyright