The euro is the official currency of the European Union (E.U.), used in 16 states of the EU and
five other countries. At first, it replaced the European Currency Unit (ECU) used for accounting,
but since January 2002 the euro is also a cash denomination, and is considered the
second-most-important currency after the U.S. dollar.

The EU is based on a treaty with some regulations. In the first years, the euro gained
strength and became a very strong currency. After the financial crisis in 2008 and 2009, new fears
appeared on the horizon. In recent months, the euro has been under constant pressure, and its
dropping value against the US dollar and the Swiss franc is alarming. It all started in Greece, but
Greece is definitely not the key issue in the crisis. Probably, it was just a coincidence.

Europe — An Artificial Power?

It seems that there are two main problems that occurred in Europe, bringing the euro in the
last few days to its present low value compared to the U.S. dollar and the Swiss franc. On the one
hand, it is more an institutional problem from bringing all the different countries under one E.U.
umbrella to speak the same language, at least from an economic point of view. The E.U. was built on
the concept that Europe is one of the strongest marketplaces, if not the strongest marketplace, in
the world. The so-called Lisbon Strategy from 2000 had the goal of making Europe the world’s most
competitive economic power. This aim has proven wrong. The textile industry in particular
demonstrates where the music is playing, mainly in Asia, and not in Europe anymore. Some experts
say that the competitive advantages of the Asian markets were also recognized by the international
finance markets in identifying the weak points and — as everybody knows today — gambling against
Greece in general and the euro in particular.

Devastating Results

The results have been devastating. Some days ago, the euro dropped below the exchange rate of
US$1.20, its lowest value against that currency in more that four years. On the other hand, the
Swiss franc is at a record-high against the euro, which is valued below 1.40 Swiss francs. But why
Greece, and not the United States and the dollar, where the whole financial crisis started? In the
United States, the national deficit is worse than that of the Eurozone countries. The national
economies of the G7 countries recorded an average annual deficit of 10 percent, and the Eurozone
countries, some 7 percent.

So what is the institutional problem of the E.U.? The fact is that Greece and other countries
did not publish the real statistics about their debts and the pressure increased on the euro.
Bluntly speaking, Greece is cheating its European partners by giving false statistics, counting on
some “first-aid” from the European Community.

Some people say it’s a colossal “constructional defect.” Maybe. But the E.U. is not the
political body that its founders had in mind. It’s the contrary: Since the current generation of
European leaders came into power, the E.U. has become more intergovernmental. The power is not in
the hands of the European Parliament, but in the hands of the chefs d’etat and the states
themselves. This leads to very long decision avenues, and they are not flexible in order to be
active in crisis.

Limited Power In Brussels

But the people of Europe can’t complain. That was exactly what they wanted in their elections
and European treaties. More power for the European Parliament was strictly opposed by most people
in the different countries. Hence, the decision-making process has become very slow. And now, the
euro is in crisis and the European governments are not capable of making fast decisions. This has
led to an even worse situation: Europe is a victim of its own circumstances, and today, it is
duller than ever.

The EU said it has learned the lesson and will now start the necessary reforms, but any
intervention to focus and integrate more power on Brussels is impossible. Even the
European-friendly Germans don’t agree to any further increase of the political power of the
European Parliament.

Vicious Circle

It is a vicious circle and the challenge of the century: In a few years, Europe will be more
over-aged than ever, which requires big money for retirement programs. Asia has more power than
ever; Europe’s old social structures must be reformed in order for it to become competitive again.
All this needs a lot of money.

On the other hand, the expenses should be limited and national debts, therefore, reduced,
which requires tough austerity programs. The Lisbon Strategy failed completely. Individual and
structural weaknesses are always the strength of the opponent. This is not the problem of Greece
but of Europe as such. And the international finance markets are very quick to find opportunities.
And this is never a coincidence.

June 8, 2010

As the overall U.S. economy is showing signs of improving, both imports and exports of textiles and
apparel are on the rise.

Government trade data covering the first quarter of this year show that exports of yarn were
up by 23 percent over the comparable period of 2009, and fabric exports increased by 19 percent. At
the same time, apparel imports from all sources increased by 11 percent; and yarn imports were up
18 percent and fabric imports, up 19 percent.

China continued to dominate apparel trade, accounting for 80 percent of the increase in U.S.
imports, while trade from the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR)
area was up 9 percent and imports from Mexico were up 9 percent. In the case of Mexico and
CAFTA-DR, apparel imports that enter the United States duty-free must contain yarn and fabric made
in the United States or the other participating countries.

Of major concern to U.S. textile manufacturers is the fact that much of the apparel import
trade with China was in the so-called “sensitive categories” of underwear, trousers and knit
shirts, for which import quotas were removed last January. While worldwide trade in these
categories was up just 7 percent, U.S. imports of those products from China were up 55 percent.

June 8, 2010

Pasadena, Calif.-based Avery Dennison Corp., a producer of identification and decorative solutions
for a variety of applications, is celebrating its 75th anniversary. From its establishment in 1935
by R. Stanton Avery — developer of the first self-adhesive label and label-making machinery and
recipient of 18 patents for his pressure-sensitive materials and production technologies — the
company has grown into a $6 billion global enterprise.

“Innovation that improves customers’ businesses and lives has been at the heart of Avery
Dennison since 1935,” said Dean A. Scarborough, chairman, president and CEO of the company.
“Everything we make and do helps make brands more inspiring and the world more intelligent. I’m
excited about the future as we honor our past. Avery Dennison[‘s] legacy continues to propel the
company forward as we invest in new markets, products and technology to better serve our customers
throughout the world.”

June 8, 2010

Switzerland-based Uster Technologies AG — a supplier of textile testing and monitoring
instruments, systems, and related services — is celebrating the 50th anniversary of the yarn
clearer, including its current iteration in the Uster Quantum 2.

Uster Quantum 2 yarn clearer, shown on a winding machine

Uster reports its yarn clearers have undergone continuous development from the beginning, and
that it has sold nearly 2 million of its Quantum generation of clearers. “Customers are entitled
never to expect less than the full innovative power of Uster,” said Dr. Geoffrey Scott, CEO, Uster
Technologies.

The company will showcase its latest testing instruments at the upcoming ITMA Asia + CITME
2010 in Shanghai.

June 8, 2010

Germany-based chemical company BASF SE has announced it will sell its hydrophilic melt additives
business, including intellectual properties and technical information, to Techmer PM LLC, a
Clinton, Tenn.-based manufacturer of colors and additives for the plastics and fiber industries.
BASF markets the additives under the trademark Irgasurf® HL, which will not be transferred as part
of the transaction. The company reports the sale will not affect its organizational structure.

“In the course of the integration of the former Ciba Plastic Additives business we have
analyzed our combined offering to the plastics industry and have decided that the Irgasurf HL
products do not fit our strategic scope,” said Soeren Hildebrandt, vice president, global strategic
management and new business development, Performance Chemicals, BASF.

“We are excited about the acquisition of BASF’s hydrophilic melt additives business and are
in a unique position to successfully grow this business because it complements our existing product
line and strong presence in the markets of fibers and nonwovens,” said John R. Manuck, president
and CEO, Techmer PM.

June 8, 2010

Lawrence, Mass.-based Polartec LLC — manufacturer of Polartec® performance fabrics for consumer
and military apparel — has announced the winners of its APEX Awards, given to designers and
companies that create the most innovative end products using Polartec fabrics. Winners have their
products displayed at Outdoor Retailer Summer Market in Salt Lake City and OutDoor Friedrichshafen
in Germany, and receive a custom Tiffany crystal award as well as custom hangtags, sales literature
and promotional support from Polartec.

The following are the North American APEX Design Award Winners:

• Mountain Mama: Fairview Wrap Jacket using Polartec Thermal Pro®
• REI: Lightweight MTS Baselayer for men and women using Polartec Power Dry®
• Patagonia: Women’s R3 Hi-Loft Hoody using Polartec Thermal Pro and Polartec Power Stretch®
• Vaute Couture Inc.: Vaute Coat using Polartec Wind Pro®
• Sealy: Embody™ By Sealy Collection using Polartec Body Climate®
• U.S. Army/ADS Tactical/Peckham Vocational: Flame Resistant Environmental Ensemble (FREE) using
  Polartec Thermal FR®
• Canada Goose: Tremblant Pullover using Polartec Power Shield® O2
• Arc’teryx: Alpha SV Glove Liner using Polartec Wind Pro
• Marmot: Variant Jacket using Polartec Power Stretch
• The North Face: Kishtwar Jacket using Polartec Power Shield Pro
• Under Armour: 2010 U.S. Olympic Freestyle Team Audio Hoody using Polartec Wind Pro
• True North: Dragonfur® Job Shirt using Polartec Thermal FR

The following are the European APEX Design Award Winners:

• Flower Gloves: Ultimate Firefighter Suit using Polartec Power Dry FR
• Montura: SuperNova using Polartec Power Shield Pro
• Eider: Power Pro Jacket using Polartec Power Shield Pro
• Ternua: Whales & Kids using Polartec Classic 300 recycled
• Montura: Scalda Muscalo using Polartec Power Shield
• Trangoworld: Axial Woman Trouser using Polartec Power Shield
• Vaude: Baltoro Pant using Polartec Power Shield
• Colmar: MD 9312 Women’s Full Zip Tecnofleece using Polartec Thermal Pro
• Wild Roses: L-Maloja PD Shirt using Polartec Power Dry High Efficiency
• Ternua: Identity using Polartec Power Stretch
• Sweet Protection: REDLINE Jacket using Polartec Thermal Pro
• Norrøna: trollvegen warm2 fleece jacket using Polartec Thermal Pro

June 8, 2010

Cleveland, Tenn.-based Manufacturers Chemicals LLC — a producer of specialty chemicals for the
textile, paper, metals and coating industries; and a division of Spartanburg-based Synalloy Corp.
— has introduced its Silicat line of hybrid softeners. The products impart a similar hand and
drape to a fabric, but contain significantly less silicone than a traditional silicone-based
softener. According to Chuck Stieg, president, Manufacturers Chemicals, customers have replaced
silicones pound-for-pound by using the new technology.

“We have developed a new chemical/mechanical process whereby we make an emulsion of a new
class of non-silicone softener along with traditional amino functional silicones,” Stieg said.
“With this technology we can produce a high performance, highly stable hybrid softener. The
resulting product offers dramatic reductions in silicone content, dramatically lower cost, reduced
possibility of spots, greatly improved flammability, and zero yellowing. The environmental impact
of these softeners is far less than traditional silicone emulsions.”

Manufacturers Chemicals is producing the Silicat line commercially at its Cleveland facility.
The hybrid softeners are available in a variety of concentrations and in both hydrophobic and
hydrophilic versions.

June 8, 2010

Glen Raven, N.C.-based technical fabrics manufacturer Glen Raven Inc.’s Anderson, S.C.,
manufacturing site has been recognized by the South Carolina Manufacturers Alliance and the South
Carolina Department of Labor, Licensing and Regulation for its safety ranking and improvements and
achievement of more than 1 million hours without a lost-time accident. The plant, which also
recently received Wildlife and Industry Together (WAIT) certification from the S.C. Wildlife
Federation
(see ”
Glen
Raven Plant Receives WAIT Certification,” April 6, 2010), is the main manufacturing
location for the company’s Sunbrella® performance fabrics.

“Everyone at Anderson plant shares in these recognitions because everyone here plays an
active role in making our workplace safer,” said Connie Rice, organizational development and
training manager at the Anderson plant. “We are proving every day the importance of management
commitment and employee ownership when it comes to safety.

June 8, 2010

Some 80,000 square feet of TigerTurf XP40 from New Zealand-based TigerTurf International — one of
the world’s largest producers of man-made turf, and an affiliate of the Netherlands-based Royal Ten
Cate NV — was recently installed in Los Angeles at the home of the first U.S. Goals Soccer Center,
which is owned by United Kingdom-based Goals Soccer Centers Plc. The soccer facility features 11
soccer fields catering to people of all ages and all skill levels who wish to play five-a-side
soccer.

California Ultimate Turf, a representative of TigerTurf Americas, was selected to construct
the fields and install the TigerTurf XP40.

Les Allan, president and CEO, Goals Soccer Center’s U.S. operations, mentioned quality of
play, durability and ease of maintenance as some of the deciding factors when choosing TigerTurf
over competitive products. Allan evaluated different turf options, visited numerous TigerTurf
installations, talked with experienced soccer players and played soccer on a TigerTurf field before
making his decision.

“The team at California Ultimate Turf was very impressive and very professional,” Allan said.
“Our new Goals Soccer Center in Los Angeles is the best facility of its kind in the United States.
Because it is truly a world-class facility, I was not willing to compromise on the quality of the
turf. I wanted the best turf available.”

According to the manufacturer, TigerTurf’s tape yarns are different from competitors’
products because they do not lie flat or split when played upon, and actually twist to form a
highly playable turf surface. It also reports that additional benefits include: even, natural ball
roll; durability; excellent tuft bind; resilience; nice appearance; and its ability to hold infill
in place to reduce infill splash, bumps or potholes on the playing surface.

“We’re honored to be part of what is expected to be the first of many of these centers in the
Americas,” said Charles Fleishman, chief sales officer, TigerTurf Americas. “Like California
Ultimate Turf, TigerTurf Americas takes pride in helping our customers to develop facilities for
healthy, enjoyable recreation,” he added.

June 8, 2010