Meridian Industries Acquires Atlantic Spinners

Meridian Industries Inc., Milwaukee, a supplier to the apparel, hosiery and specialty yarn markets,
has purchased the assets of novelty yarn manufacturer Atlantic Spinners Inc., based in Bessemer
City, N.C. Meridian currently owns 19 plants in seven states.

The newly acquired business will operate within the Meridian Dyed Yarn Group, Valdese, N.C.,
as Meridian Specialty Yarns. Former Atlantic Spinners employees Eddie Pell and Joel Goodrich will
become creative and merchandising director, and director of manufacturing, respectively.

“This acquisition allows us to design yarns with unmatched flexibility with regard to color,”
said Rob Setliff, president, Meridian Dyed Yarn Group. “Our yarns will utilize our expertise in
space dyeing from our Astro Dye Works facility in Calhoun, Ga.; in package dyeing from our dye
house in Valdese, N.C.; as well as the predyed fibers used in the Meridian Specialty Yarn facility.

August 2004