Foamex Cushioning Introduction Defies Industry Trend

    LINWOOD, Pa.--Nov. 26, 2001--Foamex International Inc. , the leading manufacturer of flexible polyurethane and advanced polymer foam products in North America, reported that year-to-date 2001 sales for its new Reflex HR(TM) furniture cushioning have exceeded forecasts and expectations.
    Alvaro Vaselli, vice-president marketing and sales for flexible foam products, ironically attributes the new product's rapid success in the marketplace to challenging economic conditions for furniture retailers. "With a soft business climate so far this year, manufacturers are looking for innovative ways to distinguish their products without greatly increasing wholesale prices. The American consumer is on the lookout for comfort and style. Foamex's Reflex HR(TM) cushioning allows manufacturers to upgrade from traditional polyurethane foam to higher levels of comfort and performance without impacting material costs." Vaselli noted that since the Reflex HR(TM) cushioning introduction in January 2001, 18 of the top 25 upholstery manufacturers have adopted Reflex products for at least one of their furniture lines.
    Key to success for retailers in selling a cushion upgrade is having benefits that can be easily presented to consumers. "Reflex HR(TM) has a clear advantage in comfort and support which furniture shoppers can spot easily by comparing cushions. Shoppers often swap cushions in the store to test options on the same sofa frame. That's actually the best way for consumers to fairly compare cushions," Vaselli said. "And more comfort and support in a cushion translates to greater satisfaction and longer service life.
    "Product economics and supply logistics also play important roles in Reflex HR(TM) sales growth," Vaselli said. He noted that the addition earlier this year of a new Variable Pressure Foaming (VPF(SM)) production line in Cornelius, North Carolina gives Foamex the ability to respond quickly to sample inquiries and orders.
    VPF(SM) is the proprietary, environmentally friendly technology Foamex uses to produce Reflex(R) cushioning products. In addition to North Carolina, Foamex currently operates VPF(SM) lines at Orange, California and Tupelo, Mississippi. A fourth line, in Auburn, Indiana, will be fully operational by year end.
    According to Foamex CEO and president, John Televantos, the new equipment at Cornelius boosted the company's VPF(SM) production by about 30 percent. "The Cornelius line brings the Reflex product line to many of our customers' doorsteps," Televantos said. "This increased capacity benefits Reflex(R) end users as well as our network of fabricating distributors. The Auburn line will bring those same benefits to midwest customers."
    Responding quickly to sample requests and rapidly converting inquiries to orders, then to product shipments are critical steps in gaining and maintaining successful product conversions.
    To streamline logistics and avoid bottlenecks that typically occur with widespread demand for a new product, Foamex has taken an innovative approach to the distribution of Reflex(R) cushioning products. Unlike other foam producers who primarily sell cushioning direct to furniture manufacturers, Foamex developed a specialized distribution network for Reflex(R) products through key foam fabricating companies. Each participating fabricator was selected for its ability to provide product engineering consultation, to inventory products and to provide just-in-time deliveries for their larger customers.
    "In the furniture business the most effective promotion is word-of-mouth endorsement," Vaselli said. "We've been fortunate to be the subject of a lot of favorable industry talk. The Reflex HR(TM) product line provides an exciting performance differential to help manufacturers and retailers in their marketing efforts. And HR foam cushioning gives a remarkable seating comfort advantage to products on the retail floor. Word travels fast when people are enjoying success.
    "It may seem odd that, in a tough economic environment, the action is focused on cushion product upgrades, but that has been our experience so far this year." Vaselli added. "Educated consumers want to be sure that, when making a major purchase decision, they receive the greatest performance and highest value for their investment. To borrow from a renowned marketing success story, Reflex Inside is one way to ensure they get it."
    Foamex, headquartered in Linwood, Pennsylvania, is the world's leading producer of comfort cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures high-performance polymers for diverse applications in the industrial, military, electronics and computer industries as well as filtration and acoustical applications for the home. Revenues for 2000 were $1.3 billion.
    For more information visit the Foamex web site at http://www.foamex.com .