Unifi To Close Dillon Plant

Unifi Inc., Greensboro, N.C., plans to close its recently acquired Dillon, S.C., texturing plant
and consolidate operations at its Yadkinville, N.C., facility. The Dillon plant employs 355 people
and is equipped with 42 texturing machines. The move, expected to be complete by the end of July,
is expected to bring annual savings of some $5 million.

The decision follows a previous decision to close Unifis polyester dyeing plant in Mayodan,
N.C., and consolidate that operation at its Reidsville, N.C., polyester dyeing plant.

“Our largest facility in Yadkinville of over 800,000 square feet has both the footprint and
equipment to accommodate the volume currently run in South Carolina,” said Bill Lowe, COO and CFO.
“We continue to streamline our product mix and look to maximize our facility utilization rates to
lower manufacturing costs to compete in the marketplace.” He added that Unifi will move some of the
Dillon texturing machines into existing plants.

The company expects to add some 120 employees to its workforce at Yadkinville to handle the
increased production at that facility.

May/June 2007