Burke Mills To Liquidate Assets

Burke Mills Inc., Valdese, N.C. — one of the largest fully automated dyehouses in North America —
has announced that it has issued the WARN Act Notice to its employees and will lay off all but a
skeleton administrative staff on Nov. 1, 2008.

The company’s Board of Directors has adopted a plan of liquidation that will be submitted to
shareholders for approval at a special meeting to be held in late September.

Press Release Courtesy of Burke Mills Inc.

September 3, 2008