Picanol Sells Looms In Vietnam, Verbrugge Relocates

Under a memorandum of understanding signed between Belgium-based Picanol NV and 8 March Textile
Co., Picanol is to supply 150 weaving machines to 8 March Textile, a Vietnam-based textile yarn and
cloth manufacturer, to replace existing equipment. The contract, valued at approximately $8
million, will take effect early this year with the first shipment of 35 machines. The remaining
machines, all of which will be built at Picanol’s headquarters in Ypres, will be shipped to Vietnam
in four to five separate deliveries over the next two years. In other Picanol news, the company’s
harness frame, heddle, reed and dropwire subsidiary, Verbrugge, has moved from its location in
Roeselare to Ypres. With the new proximity, the companies hope to take advantage of manufacturing
synergies, as well as research and development opportunities.

January 2004