ALDILA Signs Merger Agreement with Mitsubishi Rayon America; Board Recommends Stockholder Approval at December 27, 2012,

ALDILA Signs Merger Agreement with Mitsubishi Rayon America; Board Recommends
        Stockholder Approval at December 27, 2012, Stockholder Meeting

PR Newswire

POWAY, Calif., Dec. 4, 2012

POWAY, Calif., Dec. 4, 2012 /PRNewswire/ -- ALDILA, INC. (OTCQX:ALDA)
announced today that Aldila has signed a merger agreement (the "Merger
Agreement") with Mitsubishi Rayon America, Inc. ("MRA"). The Merger Agreement
provides that upon the effectiveness of the merger, Aldila's stockholders will
receive cash consideration of $4.00 per share, representing a total purchase
price of approximately $22 million for Aldila's common shares and a premium of
60% above Aldila's share price of $2.50 at the close of trading on December 3,
2012.

The Merger Agreement provides for the merger of Aldila with a wholly-owned
subsidiary of MRA. In the merger Aldila will continue as the surviving
corporation and will become a wholly-owned subsidiary of MRA. MRA is a
wholly-owned subsidiary of Mitsubishi Rayon Co., Ltd. ("MRC") and part of the
Mitsubishi Chemical group.

Aldila's Board of Directors ("Board") unanimously approved the merger and
recommends that Aldila's stockholders approve the merger. The Merger Agreement
is the culmination of a strategic review undertaken by Aldila and its
exclusive financial advisor, B. Riley & Co. The Board concluded that a sale
would be in the best interest of Aldila and its stockholders because joining
with MRC will better enable Aldila to capitalize on Aldila's business
opportunities offered by the growing demand for carbon fiber based materials
in a number of industries. The sale is at a price that the Board believes is
attractive to the stockholders and will allow Aldila to leverage MRC's
resources to more effectively take advantage of the business opportunities
open to Aldila.

"Aldila will be joining a world class Advanced Composite Materials company
that is fully integrated from the base raw material acrylonitrile, precursor,
carbon fiber and prepreg materials. MRC also offers a leading global graphite
golf shaft product line-up under the Mitsubishi Rayon brand. We see unique
synergies and opportunities for growing our two business segments of Composite
Products and Composite Materials by joining with Mitsubishi Rayon," said Peter
Mathewson, Aldila's CEO.

The Board has scheduled a stockholders meeting to be held on December 27,
2012, with a record date of November 21, 2012, for the stockholders to act on
and approve the merger. The terms of the merger will be described in the proxy
statement for the special meeting, which will be sent to Aldila's stockholders
and is expected to be mailed on or about December 6, 2012. Aldila's directors
and senior officers and certain stockholders, who collectively hold 2,274,378
shares, or approximately 41%, of Aldila's issued and outstanding Common Stock
have entered into a Voting Agreement with MRA and are committed to voting
their shares in support of the Merger Agreement.

The Merger Agreement is subject to customary closing conditions, including
applicable government and regulatory filings and approvals. The merger will
close once the shareholders approve the merger and the other closing
conditions are satisfied.

About Aldila

Aldila, Inc. is one of the world's largest manufacturers of carbon fiber
shafts. Aldila, Inc. is a designer, manufacturer and marketer of carbon-based
composite products and materials used in various end markets. Aldila's
competencies are the development of carbon-based composites and the
implementation of manufacturing processes that support the commercialization
of these composites. Aldila is a vertically-integrated supplier of composites
across three primary end markets: carbon-based pre-impregnated composite
fibers, graphite golf shafts and archery products.

You may find additional information about Aldila's business, financial results
and operations in Aldila's annual report and quarterly reports, on Aldila's
website at www.aldila.com and on the OTCQX.com website. Aldila's annual report
to stockholders for the fiscal year ended December 31, 2011, and quarterly
reports through the quarter ended September 30, 2012, have been filed with the
OTCQX and are available on Aldila's website and on the OTCQX.com website.

About MRA

Mitsubishi Rayon America Inc. is a wholly owned subsidiary of Mitsubishi Rayon
Co., Ltd. MRA's business is centered around MMA (methyl methacrylate) and AN
(acrylonitrile) business complexes as basic raw materials and finished
products. For more information, visit http://www.mrany.com.

About MRC

Mitsubishi Rayon Co., Ltd. is a wholly owned subsidiary of Mitsubishi Chemical
Holdings Corporation. MRC's business is centered around chemical and
plastics, fibers, carbon fibers and composite materials, and aqua businesses.
For more information, visit http://www.mrc.co.jp

This press release contains forward-looking statements based on Aldila's
expectations as of the date of this press release. These statements
necessarily reflect assumptions that Aldila makes in evaluating its
expectations as to the future. Forward-looking statements are necessarily
subject to risks and uncertainties, including those relating to the closing of
the proposed merger. Aldila's actual future performance and results could
differ from that contained in or suggested by these forward-looking statements
as a result of a variety of factors. Aldila's filings with the Securities and
Exchange Commission (for filings prior to its move to OTCQX U.S. Premier) and
OTC Disclosure and News Service present a detailed discussion of the principal
risks and uncertainties related to Aldila's future operations. In particular
the Annual Report for the year ended December 31, 2011, and Quarterly Reports
and Current Reports, discuss Aldila's business, financial condition, and risk
factors. All of may be obtained on the OTCQX U.S. Premier website, which can
be found at www. OTCQX.com, or at Aldila's website, www.aldila.com.

SOURCE ALDILA, INC.

Website: http://www.aldila.com
Contact: Scott M. Bier, Vice President, CFO, or Sylvia J. Castle, Investor
Relations, Aldila, Inc., +1-858-513-1801
 
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