Picanol, Radici Group Agree To Acquire Fimtextile

The Belgian weaving machine
manufacturer Picanol and the Radici Group, the Italian conglomerate which includes the
manufacturers Somet and Vamatex, have come to an outline agreement to acquire Fimtextile, the
Italian producer of cam motions and dobbies. Negotiations are also underway with a financial group
which is interested in joining this new venture.

The current acquisition initiative is being taken in order to preserve the variety of
products offered by Fimtextile, whose survival has been threatened by the worldwide recession in
the textile machinery industry. Currently, the Radici Group is its largest customer, and Picanol
has entrusted certain projects to Fimtextile for some time. It is anticipated that other
manufacturers will also be interested in this new company.

Details of the agreement will be worked out in the next few weeks.

July 2000