Product Development Powerhouse

otton Incorporated recently welcomed executives from Switzerland-based Rieter Textile
Systems to its world headquarters in Cary, N.C., to celebrate the two companies’ more than 25-year

Since 1979, Cotton Incorporated and Rieter have collaborated on research efforts regarding
fiber selection and process optimization to produce high-quality, 100-percent cotton and
cotton-rich yarns. Over the last three years, Fiber Processing Research, a division of Textile
Research and Implementation at Cotton Incorporated, has completed an intensive modernization of its
laboratory at the Cary facility.

“For a long time, Rieter spinning
equipment has been part of Cotton Incorporated’s research laboratory,” said Dr. Martin Folini, CEO,
Rieter Textile Systems, during a reception at the research center.

“Then, in 2004, Cotton Incorporated
decided on a major modernization of its research center. A prime focus was put on the new spinning
processes, namely compact spinning.”

According to Rieter, the modernization program includes:

• blow-room preparatory machines;

• C 60 card;

• RSB draw frame;

• E 62 comber and UNIlap E32;

• F 11 speed frame;

• K 44 ring-spinning frame (compact spinning); and

• R 40 rotorspinner.

Cotton Incorporateds world headquarters in Cary, N.C. – site of the recently modernized

Rieter representatives said they are
proud the leading company in the field of cotton research and marketing selected Rieter to supply
equipment to its laboratory.

“Today, a complete spinning production line, which represents Rieter’s state-of-the-art
technology in short-staple spinning, is now in place in this research laboratory,” Folini said.

“It has been an exciting opportunity for Cotton Incorporated to work with Rieter, the only
major machinery manufacturer with ‘whole mill’ capabilities,” said J. Berrye Worsham, president and
CEO, Cotton Incorporated. “We are proud to be able to showcase both companies’ significance in the
global textile arena. In doing so, we hope to continue to grow our relationship with Rieter, and
also seek to attract other important technology partners.”

During his visit, Folini, along with other representatives from Rieter Textile Systems,
toured Cotton Incorporated’s research center and attended presentations outlining its research,
marketing and strategic planning divisions.

A Step Forward For Customers Worldwide

“Ladies and gentlemen, it’s an
extraordinary day for Rieter to participate here at the inauguration of Rieter’s new machinery in
your research laboratory,” Folini said, addressing the gathering. “It’s a great honor and a
privilege for me to deliver here the best wishes and regards of my company. Rieter Spun Yarn
Systems is extremely proud to have been selected for the realization of this future-oriented
research center.

“We are convinced that the cooperation between Cotton Incorporated — the world’s leading
cotton research and marketing company — and Rieter as the innovative supplier of complete spinning
systems, will lead to further improvements and innovations in the processing of cotton. This
research laboratory will therefore be instrumental for the mutual benefit of the two partners.

“For us, this installation of an additional Rieter process line at the Cotton Incorporated
base in Cary represents a major step forward towards fulfilling the needs of our common customers
all over the world. Identical trials can be run here as in Switzerland. Customers will largely
benefit from this opportunity, as new cotton fibers will be perfectly adapted to the needs of the
various spinning processes, being rotor-spun, ring-spun standard and compacted, combed and carded.

“Likewise, the fine-tuning of the spinning processes, with regard to choice of spinning
components, machine settings and definition of spinning schedule, will henceforth be much more
target-oriented,” Folini said.

(Left to right): J. Berrye Worsham, Cotton Incorporated; Ueli K. Schmid, Rieter Corp.; Dr.
Martin Folini, Rieter Textile Systems; David M. Clapp, Cotton Incorporated; Heiner Eberli, Rieter
Textile Systems; Donald L. Bailey, Cotton Incorporated; Dean B. Turner, Cotton Incorporated; and
Charles H. Chewning, Cotton Incorporated, gathered to celebrate the updated capabilities at Cotton
Incorporated’s Fiber Processing Research laboratory.

“The Cotton Incorporated-Rieter
partnership is an attempt to look at the customer’s problem as ‘one.’ It is a win-win situation for
all, especially the customers, who can now look forward to enhanced performance of cotton fibers on
Rieter machines. The joint efforts by the two companies will undoubtedly go a long way in improving
the operational efficiency of spinners,” he continued.

“Success in a competitive market can be achieved by adopting different strategies. One way
is to make the production cost-effective and economical so that the yarn price becomes a unique
selling proposition. Not only do the machines have to be highly productive, but also the
appropriate selection of cotton is of utmost importance. As Rieter has seen and experienced
throughout the world, the services of Cotton Incorporated have become the driving success factor
for using cotton,” Folini added.

Rieter presented Cotton Incorporated with a crystal asa symbol of their long-standing
cooperation and partnership.

Symbol Of Cooperation And Partnership

At the end of his presentation,
Folini presented Worsham with a large crystal from Switzerland.

“I wish to reiterate the thanks of Rieter to Cotton Incorporated for the spirit that made
this happen,” Folini said. “I would like to offer this symbol to the research laboratory of Cotton
Incorporated. It is a symbol for Switzerland and its mountains, but also for purity, structure and
sustainability — a symbol for perfection stemming out of passion, of time and partnership. May it
also be a symbol for our cooperation and partnership, leading both companies to perfection and

March/April 2006