EXHIBIT 99.1


     FAB INDUSTRIES, INC. ANNOUNCES INTENT TO PURSUE A SALE OF ITS BUSINESS

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                  NEW YORK, N.Y. -- December 5, 2001 - Fab Industries, Inc.
(AMEX: FIT), a manufacturer of warp and circular knit fabrics, raschel laces and
laminated fabrics, today announced that its Board of Directors unanimously
decided to pursue a sale of its business in order to maximize shareholder value.

                  "The state of the industry has significantly affected our
revenues and ability to predict the course of the business. In light of current
economic conditions and turmoil in the textile industry, we felt the best
decision was to develop a plan for a sale of the business with the objective of
maximizing the return to our stockholders," said Samson Bitensky, Chairman of
the Board and Chief Executive Officer of Fab Industries. "We will continue to
operate the business as normal, including servicing our customers, maintaining
our supplier relationships and seeking profitability, and expect that any
purchaser of the business will do the same."

                  In light of the ongoing economic slowdown - particularly in
the domestic textile industry - and diminishing revenues, Fab Industries has
been engaged in a concerted effort to explore various strategic alternatives. In
order to maximize shareholder value, the Company plans to sell the business and
to do so as part of a plan of liquidation. The Company believes that in this way
it will be able to distribute its large cash position, as well as the proceeds
of any sale, to stockholders promptly and in a tax advantageous manner. In this
connection, the Board will ask its shareholders to approve a plan of liquidation
at its next annual meeting of stockholders, expected to be held in March 2002. A
proxy statement describing the plan will be mailed to stockholders approximately
30 days prior to the meeting.

                  Except for the historical information contained herein, the
matters discussed in this news release are forward-looking statements and may
include words such as "anticipates," "believes," "plans," "expects," "future,"
"intends" and similar expressions. These forward-looking statements are not
guarantees of future performance and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
expressed or forecasted in such forward-looking statements. No assurance can be
given that Fab Industries will be successful in pursuing a sale of its assets,
or that a plan of liquidation and dissolution would actually increase
stockholder value. Fab Industries may not be able to find qualified buyers for
its assets. Other potential risks and uncertainties include, without limitation,
the Company's ability to support demand for its goods and services; material
contingencies provided for in a sale of assets; amendment, delay in
implementation or termination of any plan to sell assets and subsequently wind
down Fab Industries' business; delisting of Fab Industries' stock from The
American Stock Exchange; the Company's ability to retain key employees through
the wind down period; and litigation arising as a result of Fab Industries' plan
to wind down its operations. Fab Industries does not undertake any obligation to
publicly update any forward-looking statements to reflect events or
circumstances after the date on which any such statement is made or to reflect
the occurrence of unanticipated events.

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CONTACT INFORMATION:

Steven Myers                            James Dubin
Co-President, Chief Operating Officer   Partner
Fab Industries, Inc.                    Paul, Weiss, Rifkind, Wharton & Garrison
(212) 592-2731                          (212) 373-3026
sem4@msn.com                            jdubin@paulweiss.com