Kronfli Spundale Files Chapter 11

Circular knitter Kronfli Spundale Mills Inc., Los Angeles, has filed for reorganization under
Chapter 11 of the US Bankruptcy Code. The company says the filing will allow it to refinance its
debt while it reorganizes its operation, with the expectation of maintaining its employee base and
preserving its technical expertise and capabilities. Furthermore, it says customer service and
product deliveries will continue uninterrupted.

Kronfli Spundale, established in 1977, is a vertically integrated operation, performing all
production from knitting to dyeing and finishing in-house. The company manufactures
high-performance fabrics for activewear, industrial, medical, fire-retardant, high-visibility
safety, military and correctional institution applications.

July 2004