Possehl To Acquire A Monforts Textilmaschinen

Germany-based L. Possehl & Co.
mbH, a conglomerate of medium-sized companies, has announced it will acquire Germany-based
finishing and coating textile machinery manufacturer A. Monforts Textilmaschinen GmbH & Co KG
from the Monforts von Hobe family. A. Monforts Werkzeugmaschinen GmbH & Co. KG will not be a
part of the sale.

Monforts Textilmaschinen, which has 375 employees and annual sales of approximately 110
million euros, will continue to be headquartered in Mönchengladbach. Possehl also intends to
continue Hong Kong-based Monforts Fong’s Textile Machinery Co. Ltd. — Monforts’ joint venture with
Hong Kong-based Fong’s Industries Co. Ltd.

“As an independent business division, Monforts Textilmaschinen group can maintain its own
identity and has the opportunity to strengthen its market position and to further develop the
company successfully in the long run,” said Uwe Luders, CEO, Possehl.

The companies expect the acquisition, which is subject to approval from the relevant
antitrust authority, will be effective as of April 1, 2006.

February 28, 2006