Cone Denim To Lay Off 150 Employees

The Cone Denim division of Greensboro, N.C.-based International Textile Group Inc. (ITG) has
announced it will reduce capacity at its White Oak plant in Greensboro, a move that is expected to
result in the termination of approximately 150 employees. The layoffs, which would take place by
the first week in December, would leave the 102-year-old plant with a workforce of approximately
550 people.

“The reduction in volume is a direct result of the increasing sourcing trends of US retailers
for imported denim fabrics and garments,” said Delores Sides, director, corporate communications
and human resources, ITG. “The plant’s focus has been and will continue to be on product
development and higher-end premium denim fabrics. Going forward, the White Oak facility will
increasingly focus on these higher-end styles where we can be competitive and transition away from
commodity styles. From a product development, quality and efficiency standpoint, the White Oak
plant is positioned to be competitive.”

Impacted employees will be eligible for retraining assistance under the Trade Assistance Act,
which aids workers who have lost their jobs as a result of foreign competition, as well as for
company severance benefits. Sides said Cone Denim also will help employees find other job
opportunities in the Greensboro area.

October 23, 2007