MISGAV, Israel, December 3 /PRNewswire-FirstCall/ -- Tefron Ltd. (OTC: TFRFF)(TASE:TFRN), a leading producer of seamless intimate apparel and engineered-for-performance (EFP(TM)) active wear, today announced that in a meeting today between the Company and the representatives of its three bank lenders, Bank Leumi Le-Israel Ltd., Discount Bank Le-Israel and Bank Hapoalim Ltd. (jointly the "Banks"), it was agreed that the Company would send to the Banks, by the end of the year 2009, a business plan for the year 2010 (the "Business Plan") and that the Banks would permit the Company to continue to operate under the credit lines which are currently actually utilized until the Business Plan is approved by them. The meeting today was held in response to non-written notices that the Company's Chairman of the Board and its Chief Financial Officer received on December 2, 2009 from the Banks in which the Banks stated their decision to terminate the Company's utilization of its credit line. As of September 30, 2009, the total outstanding credit utilized by the Company by the Banks is approximately $29 million. The Company's capital as for such day was approximately $51 million. This credit is secured by a floating charge over all Company's assets and also a commitment of the Company to create fixed charges over the Company's machines. The Company estimates that in the event that the Banks do not approve the Business Plan and cancel all Company's credit lines, it will jeopardize the continuance of the Company's activities. About Tefron Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swim wear 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, swim wear, 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. We have based these forward-looking statements on our current expectations and projections about future events. 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 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. 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,

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