Garmatex Technologies Inc. Signs 5 Year Textile Licensing Agreement With BODYARMOUR® And BASE360™

VANCOUVER, British Columbia — December 13, 2012 — Garmatex Technologies, Inc. (“Garmatex” or the
“Company”), an innovative leader in the research and development of scientifically engineered,
performance-inspired fabric technologies, is pleased to announce the signing of a 5 year licensing
contract with Pro-Formance Insights, R.A. Inc. (PFI), a Canadian company specializing in cut
resistant base layer protection apparel that safeguards against serious lacerations in sports, law
enforcement and other high-risk professions. PFI is selling their products through the brand names
BODYARMOUR® and BASE360™.

Doug Thom, CTO of Garmatex states; “This is truly an amazing breakthrough. By combining PFI’s
patented cut resistant technologies with our moisture management fabrics and patented T3® gusset
technology, this is truly the convergence of 2 superior technologies combined into 1 phenomenal
product. Whether you’re a hockey player trying to prevent skate cuts or a police officer exposed to
a dangerous situation, you now have the ultimate in comfort, performance and protection built into
one product.”

Rolf Loyens, President of PFI, is equally excited about this relationship. “This has been a
long process for us to find a partner that views performance and protection equally as important as
we do. In some cases, our users are on the front line putting their lives at risk therefore there
can be no compromise for quality; only the best will do.” Mr. Loyens also adds that; “We pre-tested
the product with our key influencers and the response by insiders to this new technology within our
2013 BODYARMOUR® and BASE360™ product line has been overwhelmingly positive. Hockey players are
looking to prevent severe lacerations from skates and the integration of protection in a light
weight performance fabric is establishing our base layer products as an integral piece of equipment
versus just an accessory.” Mr. Loyens comments that; “If one takes into account the multiple
applications for this technology like: hockey, ice sports, law enforcement, security, industrial
and military, the potential for this segment of the apparel market can be in excess of $400
million.”

Darren Berezowski, President of Garmatex suggests that; “This signing with PFI affirms our
goal at Garmatex towards continuing to license our leading-edge fabrics and technologies to premium
brands that are looking to use innovation to help improve lives around the world. Our technologies
combined with PFI’s technologies create a rather unique product which truly leverages both
companies into a strong market position. We are convinced that developing leading-edge technology
and partnering with like-minded companies will ultimately transform the materials industry and help
establish Garmatex as the leader for performance and fabric technologies.”



Posted on December 18, 2012

Source: Garmatex Technologies Inc./PRNewswire

Zepol’s Data Shows U.S. Vessel Imports Are Down From October To November By 12.8%

MINNEAPOLIS, Minn. — December 14, 2012 — Zepol Corporation, the leading trade intelligence company
reports that U.S. import volume in November, measured in TEUs (twenty-foot-containers), is down
12.8% from October and another 15.2% from November of last year. The total number of TEUs imported
for the month was 1,245,889. This is the lowest amount of U.S. imports for the month of November
since 2003. Hurricane Sandy on the east coast and labor strikes on the west certainly played a
large factor in the import slump. For the last two years, November imports have been over 1.4
million TEUs, though this year’s patterns have been changing. So far in 2012, the peak in imports
has shifted to earlier in the summer and there hasn’t been a rise in imports month-over-month since
July.

A Closer Look at U.S. Imports for November:

1. Exporting Countries – Imports from Asia dropped significantly in November,
which is a major contributor to the fall in U.S. imports. China and South Korea, the top Asian
exporters to the United States, decreased from October by 18.2% and 21.1%, respectively. Unlike
most regions, Europe actually increased in vessel exports to the United States by 4.5% from
October. Germany rose 4.8% and Italy increased 13% in November. Similar increases were also seen
from Belgium and Spain, but for some reason the United Kingdom dropped from October by nearly 6%.

2. U.S. Ports – The Port of Los Angeles and the Port of Long Beach both had major
decreases in TEUs from October. This was partly due to the lack of imports in general, but also
because of labor strikes occurring at both pacific ports. The port of Newark and New York actually
rose in imports from October by 1.9% and was the only port in the top 10 to see a notable increase
for the month.

3. Carriers – Ocean carriers are singing the same tune as everything else in
November with large decreases coming from all of the top 20. Maersk Line, the leading carrier of
U.S. imports, dropped in TEUs by 6.6%. Mediterranean Shipping and APL Co. also decreased in TEUs by
10.3% and 14%, respectively. It’s not apparent why imports are so low in November and it will be
interesting to see if this declining trend will stick around in December.

Methodology:

Zepol’s data is derived from Bills of Lading entered into U.S. Customs and Border Protections
Automated Commercial Environment (ACE). This information represents the number of House manifests
entered by importers of waterborne vessel goods. This is the earliest indicator for trade data
available for the previous month’s import activity. The data excludes shipments from empty
containers, excludes shipments labeled as freight remaining on board, and may contain other data
anomalies.

Posted on December 18, 2012

Source: Zepol Corp.

Trützschler Acquires SwissTex Winterthur

Trützschler Group, Germany, has acquired Switzerland-based SwissTex Winterthur AG’s bulked
continuous filament (BCF) and industrial yarns business, including personnel and intellectual
property, and will incorporate it into its Trützschler Man-made Fibers business under the name
Trützschler Switzerland AG.

Trützschler Switzerland will continue to offer spare parts, upgrades and customized systems
for processing BCF and industrial yarns. Plans call for its further development as part of
Trützschler Man-made Fibers.

PrimeTex Technology LLC, Dalton, Ga., has been providing parts, equipment and services to
SwissTex’s U.S. and Canadian customers, and now represents Trützschler Switzerland in that
capacity.

November/December 2012

Navis TubeTex Reports Sales Of TM-100 In Turkey

Navis TubeTex, Lexington, N.C., has sold a TM-100 open-width compactor to Tamteks Tekstil, Turkey,
and will install two more machines in Turkey by the end of this year.

The TM-100 processes viscose knit fabrics at 30 meters per minute, controlling shrinkage to
less than 4 to 5 percent. It also controls shrinkage in other hard-to-control, sensitive fabrics to
less than 3 percent.

November/December 2012

Teijin Eco Circle Selected For Nissan Leaf Interiors

Tokyo-based Teijin Ltd.’s Eco Circle Plantfiber, whose content includes more than 30-percent
biobased polymer derived from sugar cane, has been selected by Nissan Motor Co. Ltd., Japan, for
use in seat, door trim, headrest and center armrest fabrics in the 100-percent electric Nissan Leaf
automobile. The Leaf is the first mass-produced vehicle to use Eco Circle Plantfiber for interior
applications.

Teijin codeveloped the fabrics with automotive seat maker Suminoe Teijin Techno Co. Ltd.,
Japan, and Nissan.

November/December 2012

Lenzing Repositions Modal®

Lenzing AG, Austria, has repositioned its Lenzing Modal® brand to emphasize the fiber’s
carbon-neutral production technology. The fiber’s new tagline, “CO2 Neutral Softness by Edelweiss
Technology,” replaces the previous slogan “Makes the World a Softer Place.”

Lenzing’s Modal production site in Austria is fully integrated to include pulp and fiber
production. Pulp production is energy self-sufficient and generates energy for the complete
production of Modal, which is derived from domestic beechwood. Up to 95 percent of all processing
chemicals are recovered, and almost half of Lenzing Modal production uses an oxygen-bleaching
process. Carbon neutrality claims for the fiber have been verified in a life cycle analysis.

November/December 2012

Poole Co. Launches EcoSure® Full-Circle, ComFortrel By Poole

Poole Co., Greenville, now offers the EcoSure® Full-Circle Program to take back any item made
100-percent using its EcoSure 100-percent post-consumer recycled polyethylene terephthalate staple
fiber and recycle it again into new fiber. The program is targeted to textile distributors and
manufacturers.

The process can be repeated over and over, theoretically keeping the materials out of
landfills forever. EcoSure’s recycled fiber content has been certified under Emeryville,
Calif.-based Scientific Certification Systems’ SCS Recycled Content Certification Program.

In other news, Poole Co. reports its ComFortrel by Poole engineered copolymer polyester fiber
offers performance equal to or exceeding that of the original ComFortrel fiber previously offered
by Wellman Inc., which has gone out of business.

The new fiber can be dyed atmospherically at 212°F, potentially with reduced chemical usage.
Features include durability; easy care; good shape retention; fast-drying properties; shrink, fade
and wrinkle resistance; soft hand; and low pilling properties. Potential markets include
activewear, childrenswear, sportswear and hosiery.

November/December 2012

Jakob Müller’s Not-So-Narrow 125 Years

In times of troubled waters, it is not an everyday occurrence to celebrate the 125th anniversary of
a company. But such is the case for Jakob Müller AG, Frick, Switzerland, one of the global leaders
in the production of machinery and equipment for making narrow fabrics and labels. In addition, the
Jakob Müller Institute of Narrow Fabrics recently organized the 12th Narrow Fabrics Conference.

During the celebrations for the 125th anniversary, the company announced that Martin Buyle, a
member of the executive management team, has been appointed new CEO of the entire Müller Group, to
succeed Christian Kuoni as of 2013. Kuoni will continue to head the Administrative Board.

MullerBuyle

Martin Buyle will take charge as CEO of Jakob Müller in 2013.

 


Some History


One shouldn’t look back too much. However, some milestones in the history of the company are
interesting: Toward the end of the 19th century, in 1887, Jakob Müller-Schneider (Jakob Müller I),
a trained loom carpenter, opened a workshop in Frick and soon began to design his own looms.
Eventually he built the first electrically powered ribbon and narrow fabric looms.

In 1912, Jakob Müller-Kistler (Jakob Müller II) took over the company from his father. During
the difficult period of the 1930s and World War II, the company remained small, but the basis was
provided for later growth.

Muller1

Jakob Müller’s headquarters are located in Frick, Switzerland, where Jakob Müller-Schneider
opened his workshop in 1887.




Hook-and-loop Fastening


In 1946, Jakob Müller-Frauenfelder (Jakob Müller III) joined the family business, which then
employed eight people. The initial plans for global market orientation were prepared. In 1953, the
company launched the first shuttleless narrow fabric machines into the market. Three years later,
Swiss engineer Georges de Mestral invented the revolutionary hook-and-loop fastener tape. Jakob
Müller III brought the related production technology to industrial maturity and thus opened up a
new area of branch activity.


Global Expansion


However, the Swiss border became too limiting for the company. Müller machines have been
exported all over the world, and the development of a global network of locations began with the
opening of a sales and service center in Germany, followed in 1979 by Jakob Müller Italiana S.p.A.,
and Jakob Müller of America Inc. in 1982.

The year 1987 marked the 100th birthday of the company. For this anniversary, it launched the
first rapier label weaving machine, MÜGRIP MBJ1, into the market.

In 1992, there was a change in leadership: Christian Kuoni became CEO of the Müller Group,
while Jakob Müller III remained chairman of Jakob Müller Holding AG.

Following the opening and booming of the Asian markets, Jakob Müller (India) Pvt Ltd. opened
in Bangalore, India, followed by offices in China, Japan and Hong Kong. In 1996, production began
in India; and in 1997, in China. However, the Latin American market became more important,
resulting in new companies being founded in Brazil and Mexico in 2000.

The latest news is that on Oct. 8, 2012, Jakob Müller and Italy-based Comez Gestioni S.p.A.
officially combined their activities in the area of crochet and warp-knitting machines for the
narrow fabrics industry. Comez International S.r.l. remains at its location in Cilavegna, Italy.
Paolo Banfi, head of Comez, reported to Comez customers that the company’s product portfolio and
services are now available through Comez International, and expressed confidence that the merger
with Jakob Müller would enable Comez to improve its technological standards, after-sales service
and quality. “The service of your machines and the delivery of spare parts are guaranteed with the
same efficiency and quality as you have been accustomed to,” he assured them.


The Narrow Fabrics Conference


For 12 years, the Jakob Müller Institute of Narrow Fabrics has organized the Narrow Fabrics
Conference. In September 2012, the most recent summit of the global narrow fabrics community took
place in Frick. The institute guided the attendees through topics of current interest in the narrow
fabrics area, but also presented issues relating to the global textile industry as such. Speakers
from different sectors of the industry presented their ideas and views about an issue. This year,
Michael Harder, Ph.D., from the Bureau for Interdisciplinary Sciences, Germany, talked about
“Physiconomics — the physical rule for economic success.”

Physicon … — what? Harder explained: “Physiconomics is a new scientific discipline that
applies fundamental insights from complex physics systems to economic relationships. The result is
an overall view of our economic situation which offers a perspective that varies considerably from
the mainstream. Physiconomics shows that our complex business world consists of logical islands in
a sea of risks, probabilities and natural contradictions.”

To put it in somewhat simpler words: Physiconomics is the function of complex systems:
success and failure. Harder said that physics and economics are merged or interlinked and become
“Econophysics and Physiconomics.” His presentation provoked many comments from the audience.

Muller2

Attendees at Jakob Müller’s 12th Narrow Fabrics Conference heard presentations on topics
relating to both the narrow fabrics sector and the global textile industry.


Global Man-made-fiber Yarn Supply


Peter Driscoll, managing director, PCI Fibres, United Kingdom, spoke about the recent
developments in the man-made fiber market and its links to narrow fabrics. Especially high-tenacity
polyester filament yarn plays a significant role in the narrow fabrics sector, with a market share
of some 15 percent for the production of seat belts. Other fiber types have a market share ranging
between 1 and 2 percent. Driscoll estimates the consumption of polyester high-tenacity filaments is
up to 550,000 metric tons (mt), with polyamide consumption at 65,000 mt, and viscose at some 5,000
to 10,000 mt. He answered the old question about the share of man-made fiber consumption in the
world compared to natural fibers consumption by mentioning that global demand for man-made fibers
increased 5.8 percent in 2011 to 53.2 million mt. Driscoll predicts 2.3-percent annual growth of
all fiber types up to 2020.


Sustainability


Also at this conference, sustainability was in the center of attention. Bernd Dannhorn of the
well-known lingerie producer Triumph International AG, Germany, reported on his company’s road to
premium sustainability. “As the leading producer of underwear, swimwear and homewear, we are fully
aware of the need to produce only such goods that comply with the most stringent user safety
requirements,” he said. In the forefront is the fact that every piece must be traceable to build up
and maintain credibility and confidence. However, he argued that today, there are still no
comprehensive labels and standards that are applicable for all markets. For certain, this matter is
one, if not the, key issue for all activities in the textile industry in the future.

November/December 2012

Thoughts On Prices

Attractive pricing could be one reason why textile and apparel demand has held up so well over the
past few years. Apparel tags have only risen about 6 percent since the pre-recession days of 2007 —
or 1 percent per year. And textile quotes, while they did spiral in late 2010 to early 2011 because
of skyrocketing cotton costs, have again dropped back to pre-cotton-runup levels. All this is in
sharp contrast to the near-20-percent jump in all U.S. manufacturing prices over the past five
years. This differential, if nothing else, has made clothing and other textile products a lot more
enticing to consumers who have had to make tough decisions on how and where to spend their
still-limited incomes.

More important, this less-than-average textile/apparel price pattern should persist. For
one, material cost pressures look to remain low, with all signs pointing to ample or
more-than-ample supplies of both cotton and man-made fibers. And similar cost restraint is seen for
labor, where 2- to 3-percent hikes in hourly pay continue to be offset by productivity increases of
the same magnitude. Then, there’s the price-dampening impact of imports. True, incoming shipments
of relatively low-priced textiles and apparel have leveled off. But there’s little to suggest any
decline.

Finally, industry management continues to make progress in keeping costs down — both by
eliminating waste and improving production and distribution operations. Better inventory control
provides a good example of this progress — with days’ supply remaining well under levels of the
past few decades, despite some huge swings in month-to-month demand. This is something that can
have a big bottom-line impact, as carrying charges make up a big portion of the typical firm’s cost
of doing business.

 
BFGraph


A Look At 2013


All the above, however, is in no way meant to imply that the U.S. industries’ prices won’t
edge higher over the next year or so. They’re bound to inch up, if only because of the overall
inflationary pressures generated by both the U.S. and global economies, as they strive to spark
larger economic gains. As such,

Textile World
 ‘s 2013 price projections for both basic textiles and more highly fabricated products like
carpets and home furnishings are expected to show continuing — probably near 1 percent — advances.
And it’s much the same picture for apparel, where only fractional increases are anticipated.
Contrast these to the almost certain much bigger boosts expected in other sectors — especially
those centered in areas that compete for the consumer dollar — like food, transportation, shelter,
education and medical care. As such, prices should continue to be a textile “plus” next year — at
least, as far as shoring up demand is concerned. Indeed, at this point in time, there’s little to
suggest that these differing price-rise patterns won’t spill over into 2014 and beyond.


The Election Impact


Changes wrought by the recent national election could also play a rather important role in
how the U.S. economy and its textile and apparel industries will fare over the next year or two.
While nothing can be said with absolute certainty, it’s becoming increasingly clear that pressure
to avoid falling off the “fiscal cliff” — with implementation of higher taxes and substantial
spending cuts starting Jan. 1, 2013 — is becoming a lot more intense. This doesn’t mean a so-called
“ground bargain” between feuding Democrats and Republicans will be signed, sealed and delivered by
year-end. But it does suggest that some sort of emergency legislation will be passed to delay or
modify these negative fiscal moves. More important, most business analysts feel that a few extra
months of haggling won’t have a catastrophic impact on the U.S. economy. Given the above scenario,

TW
 is now projecting about a 2-percent advance in gross domestic product (GDP) for the next
year. That’s far from great, but it’s a little better than 2012’s anemic less-than-2-percent
advance. Moreover, if things turn out as anticipated, 2014 could see some modest acceleration in
the growth rate — with a 3-percent or slightly higher GDP increase expected. That’s a rate which
could finally begin to make a dent in the United States’ still way-too-high jobless rate. All this,
in turn, seems to assure a continuation of somewhere near the current level of U.S. textile and
apparel activity. More on all this next month, when

TW
 publishes its annual economic outlook.

November/December 2012

Robust Business Continues; Spinners Wary Of Fiscal Cliff

The yarn market remained strong into the last week of November, with ring-spun (RS) cotton yarns
continuing to be in high demand. Spinners and yarn brokers also reported that orders for open-end
(OE) yarns were increasing as well.

“Overall, it’s been a pretty solid quarter — even a solid second half,” said one spinner. “We
had a slow period back in July, but it’s been pretty steady ever since.”

Said another spinner: “Our business has been really strong since the middle of July, and it
appears it is going to continue to be strong through the first quarter, unless something unexpected
happens.”

One industry insider said: “Everybody I’ve talked to is running pretty well. The knitters are
running. The weavers are actually pretty busy. I am hearing retailers continue to talk about trying
to bring programs back to the United States. I am even hearing talk that some of these retailers
may begin to feature Made in USA products in dedicated sections of their stores. While I’m not sure
it will materialize by the holidays, I think there’s a good chance some of this will happen by
spring. Overall, I would say the industry is cautiously optimistic.”

However, some industry insiders say there is nervousness about what the first of the year may
bring, depending upon if and how the Obama administration and Congress compromise on a tax and
spending plan. “Everyone is concerned about whether they can fix this fiscal cliff,” said one yarn
seller.

The fiscal cliff is a combination of spending reductions and tax-cut reversals that would
create a significant annual reduction in the federal deficit. Slated to start in January, it
includes $7 trillion in tax increases and spending cuts over a decade. However, many observers say
the movement is too much, too fast, and could plunge the U.S. economy back into recession. “What we
have now in our industry is a situation where everybody’s busy, but they’re scared.”


OE Makes Comeback; RS Prices In Flux


OE yarn demand has been generally weak for a sustained period, according to several spinners.
Small upticks in demand have been intense at times, but relatively short-lived. As of late
November, demand for OE yarns was relatively strong. Said one yarn buyer: “The companies I’ve
talked to are running at a fuller schedule for the most part than they have in a while. Pricing is
still not good, but business is better. OE margins are still very thin.”

RS margins are better, but pricing is volatile. “It’s rare that we’ve seen, in what appears
to be a relatively stable cotton market, such a wide variance in ring-spinning sales prices,” said
one prominent yarn broker. “Costs have to be relatively steady. While there are still a few
spinners with some higher-priced cotton, that’s not the cause of what we are seeing with these yarn
prices. They are all over the place.”


One yarn buyer said he’s seen prices for 30/1 RS combed cotton anywhere from $2.10 to $3.60 a
pound. “Some mills might quote a price for $2.10, but they don’t have any to sell. Others might be
at $3.50, and that’s with a six-week or more turnaround. Right now, there are mills selling
everything they can make for $3.45 or better.”


Quick Turn


One attribute that has provided a distinct advantage for U.S. spinners is the ability to
quickly produce and deliver orders. The definition of quick turn, however, varies somewhat with
demand. “There is no doubt we have given our customers the impression that we can always quickly
deliver orders,” said one spinner. “But in times of very high demand, that’s not always the case.”

“The dynamics of the ring-spun market have placed a premium on communication,” said another
spinner. “With limited inventories, it is inevitable that we will encounter scheduling challenges.
When that happens, communication becomes even more critical.”

A yarn broker agreed: “I had a customer call wanting a large order delivered immediately. I
explained that six weeks was the best I could do and would likely be the best anyone could do. I
got a purchase order later that afternoon.”

“The important thing is to put customer service at a premium,” said one spinner. “During this
type of market, communication, understanding and responsiveness are required to maintain the
momentum.”

November/December 2012

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