MISGAV, Israel, March 2 /PRNewswire-FirstCall/ -- Tefron Ltd. (OTC: TFRFF ; TASE:TFRN), a leading producer of seamless intimate apparel and engineered-for-performance (EFPTM) active wear, today announced that in terms of its work plan for 2009 and as a result of the slowdown in global economy, the Company's Board of Directors has approved a streamlining process across all areas of activity. The elements of the plan are as follows:

1. Optimizing and combining production processes, including combining production sites in Jordan, increasing the efficiency of the knitting process, reducing manufacturing costs, including a headcount reduction at the Company of around 15%.

2. Expansion of marketing activities in Europe.

3. Marketing to local customers as well as opening a factory store for selling surplus in Israel, as part of the strategy to deal with surplus inventory.

The Company expects that these steps will reduce the effects of the global economic situation on operations, as well allowing the matching of the Company's resources to the anticipated level of activities in the coming year. This, all the while maintaining Tefron's competitive advantages and profitability once the global economic situation improves.

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, 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. 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:



    - 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;
    - fluctuations in inflation and currency rates;
    - 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);
    - 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; and
    - 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
    +972-4-9900803
    reran@tefron.com

    IR Contact:
    Ehud Helft / Kenny Green
    G.K. Investor Relations
    +1-646-201-9246
    info@gkir.com

SOURCE Tefron Ltd