Cone Denim To Build Plant In China

The International Textile Group (ITG), Greensboro, N.C., recently announced it plans to build a
denim plant in Zhejiang Province, China. The joint venture operation will be called Cone Denim
(Jiaxing) Ltd. A subsidiary of ITG will own 51 percent of the operation, while a subsidiary of
China-based Novel Holdings Ltd., owned by the Chou family, will own 49 percent.

“Cone Denim is known throughout the world as the leader in denim innovation and quality,”
said John L. Bakane, president and CEO of ITG’s Cone Denim LLC business unit. “The China operation
will provide Cone Denim with a value-added denim platform to expand our global reach to service our
customers with high-quality, fashion denims wherever they are.”

Novel Holdings principal businesses in China include yarn and knitwear operations that sell
to such branded companies as Pepe and Michael Kors.

September 2005