JPS Industries (JPST) 8-K JPS Industries, Inc. Reports Improved Second Quarter

EXHIBIT 99.1

CONTACT:	Charles R. Tutterow
	Executive Vice President and Chief Financial Officer
	864/239-3915

JPS INDUSTRIES, INC. REPORTS IMPROVED SECOND QUARTER

NET INCOME OF $0.09 PER SHARE

GREENVILLE, S.C. (June 15, 2004) – JPS Industries, Inc. (Nasdaq/SC: JPST) today announced results for the second quarter and six months ended May 1, 2004.

For the second quarter of fiscal 2004, JPS reported a net income of $0.9 million, or $0.09 per diluted share, on sales of $38.2 million compared with a net loss of $1.5 million, or $(0.17) per diluted share, on sales of $29.5 million in the second quarter of fiscal 2003. For the quarter, sales increased 29.4%.

For the first six months of fiscal 2004, the Company reported a net income of $0.7 million, or $0.07 per diluted share, on sales of $69.4 million compared with a net loss of $2.1 million, or $(0.23) per diluted share, on sales of $58.3 million for the same period in fiscal 2003.

Michael L. Fulbright, JPS’s chairman, president and chief executive officer, stated, “We are pleased with our overall performance this quarter. The improved operating income resulted from Stevens^® Roofing, Stevens^® Urethane and JPS Glass each enjoying revenue line growth and improved manufacturing performance associated with higher production levels. In addition to the improvement in our businesses, we were also gratified to have favorably resolved the Sears lawsuit which was dismissed with prejudice after almost seven years of litigation. This resolution eliminates an issue that has weighed on our Stevens^® Roofing unit for far too long.”

Charles R. Tutterow, JPS’s executive vice president and chief financial officer, stated, “We are also pleased to announce that we have entered into a new $25 million Credit Agreement with Wachovia through April 30, 2007. The terms and conditions are similar to our previous credit agreement although the principal financial covenants are now the maintenance of a minimum level of EBITDA and establish a minimum fixed charge coverage ratio. We expect to be in full compliance with all covenants for the foreseeable future.”

In conclusion, Mr. Fulbright stated, “We expect the trend of quarterly improvements, in place now since the third quarter of last year, to continue. Unfortunately, the sustainability and pace of the improvement still has enough uncertainty as to preclude any specific forecast on our part. Along with improving demand, we are also seeing raw material and energy cost increases and it will be our objective to pass along these costs as appropriate to our respective markets. Finally, we remain confident that our solid market positions, our competitive cost structures and our solid balance sheet will give us leverage to take advantage of any further overall market strengthening and other growth opportunities as they occur in each of our businesses.”

JPS Industries, Inc. is a major U.S. manufacturer of extruded urethanes, polypropylenes and mechanically formed glass substrates for specialty industrial applications. JPS specialty industrial products are used in a wide range of applications, including: printed electronic circuit boards; advanced composite materials; aerospace components; filtration and insulation products; surf boards; construction substrates; high performance glass laminates for security and transportation applications; plasma display screens; athletic shoes; commercial and institutional roofing; reservoir covers; and medical, automotive and industrial components. Headquartered in Greenville, South Carolina, the Company operates manufacturing locations in Slater, South Carolina; Westfield, North Carolina; and Easthampton, Massachusetts.

This press release contains statements that are forward-looking statements regarding future events. These statements are only predictions and there are a number of important factors that could cause future events to differ materially from those expressed in any such forward-looking statements. These factors include, without limitation, the general economic and business conditions affecting the Company’s industries, actions of competitors, changes in demand in certain markets, the Company’s ability to meet its debt service and pension plan obligations (including its ability to meet the financial obligations in its Credit Agreement), the Company’s ability to realize its deferred tax asset, the seasonality of the Company’s sales, the volatility of the Company’s raw material, claims and energy costs, the Company’s dependence on key personnel and certain large customers and other risk factors described from time to time in the Company’s filings with the Securities and Exchange Commission. The Company assumes no responsibility to update the forward-looking statements contained in this release as a result of new information, future events or otherwise. JPS Industries, Inc. is not responsible for changes made to this document by wire services or Internet Services.

JPS INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended					Six Months Ended
	May 1, 2004		May 3, 2003			May 1, 2004		May 3, 2003
NETSALES	$	38,170	$	29,493		$	69,378	$	58,272
COSTOFSALES		31,771		25,989			58,209		51,196
Gross profit		6,399		3,504			11,169		7,076
SELLING,GENERAL &ADMINISTRATIVEEXPENSES		4,861		4,868			9,609		9,263
Operating income (loss)		1,538		(1,364	)		1,560		(2,187	)
Interest expense		199		165			388		320
Income (loss) before income taxes		1,339		(1,529	)		1,172		(2,507	)
Provision (benefit) for income taxes		475		0			475		(381	)
Net income (loss)	$	864	$	(1,529	)	$	697	$	(2,126	)
WEIGHTED AVERAGECOMMONSHARESOUTSTANDING
Basic		9,349,259		9,294,259			9,330.926		9,293,426
Diluted		9,537,842		9,294,259			9,528,089		9,293,426
Basic earnings (loss) per common share	$	0.09	$	(0.17	)	$	0.07	$	(0.23	)
Diluted earnings (loss) per common share	$	0.09	$	(0.17	)	$	0.07	$	(0.23	)
Depreciation	$	1,355	$	1,379		$	2,676	$	2,762
Capital expenditures	$	154	$	110		$	213	$	165
Cash taxes paid	$	0	$	9		$	0	$	36

JPS INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	May 1, 2004			November 1, 2003
	(Unaudited)
ASSETS
Current Assets:
Cash	$	251		$	661
Receivables		23,118			20,070
Inventory		14,878			13,613
Prepaid expenses and other		4,836			3,468
Total current assets		43,083			37,812
Property, plant and equipment, net		31,400			33,788
Other assets		11,307			11,771
Total assets	$	85,790		$	83,371
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	10,506		$	10,062
Accrued salaries, benefits and withholdings		2,166			1,017
Accrued pension costs		4,263			7,446
Other accrued expenses		6,503			3,997
Current portion of long-term debt		1,572			722
Total current liabilities		25,010			23,244
Long-term debt		13,918			14,046
Deferred revenue and postemployment liabilities		41,089			41,045
Total liabilities		80,017			78,335
Shareholders’ equity:
Common stock:
Par value		100			100
Additional paid-in capital		123,226			123,332
Treasury stock (at cost)		(1,749	)		(1,895	)
Additional minimum pension liability		(49,835	)		(49,835	)
Accumulated deficit		(65,969	)		(66,666	)
Total shareholders’ equity		5,773			5,036
Total liabilities and shareholders’ equity	$	85,790		$	83,371

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