Swift Galey Sells Denim Spinning Operation To Frontier

Atlanta-based apparel, home and hospitality textile manufacturer Swift Galey has sold its denim
spinning operation in Columbus, Ga., to Sanford, N.C.-based Frontier Spinning Mills Inc. Under the
terms of the transaction, the Columbus plant will continue to operate until mid- to late May 2006,
after which Frontier will relocate the machinery to plants in North Carolina, where it will spin
yarn to sell for Swift Galey’s denim fabrics. Approximately 200 employees will be affected by the
closing of the Columbus facility.

According to John J. Heldrich,
president and CEO, Swift Galey, the Columbus spinning facility is outdated and inefficient. He said
the company will continue to operate a large, relatively modern weaving/dyeing/finishing plant in

“The spinning facility is not cost-efficient by today’s standards, so we have formed a
partnership with Frontier, which has state-of-the-art, modern facilities. Henceforth, we will
purchase yarn from Frontier because that is more cost-efficient for us,” Heldrich said, adding: “We
are an innovator of product and have to stay competitive. This action will help provide for the
future longevity of the company.”

Heldrich said some manufacturing and administrative personnel currently at the older plant
will be able to transfer to the other Columbus facility.

Swift Galey still operates a spinning plant near Charlotte, where it spins yarn for its
khaki fabrics. In addition to operations in Georgia and the Carolinas, it maintains either directly
or through joint ventures manufacturing facilities in Canada, Mexico, China, Africa and the
Philippines. Its newest offshore ventures include the purchase of the majority interest in the
Mexico-based House of Lajat, which manufactures cotton and polyester/cotton textiles for
hospitality, sheeting and uniform applications; and two joint ventures in China with Lucky Textile
Group — one to build a denim-manufacturing plant, and one to operate Lucky’s existing dyeing and
finishing facility.

April 4, 2006