As Chinese Premier Wen Jiabao denied that his nation’s currency is undervalued and claimed that
efforts to pressure China to revalue it amounts to “protectionism,” a bipartisan group of 132
members of the House of Representatives has urged the Obama administration to “urgently address”
what they see as growing problems resulting from China’s currency.

At a news conference following the annual session of China’s legislature, Wen said: “I
understand that some countries want to increase their exports, but I don’t understand the practice
of depreciating their currencies and forcing others to increase theirs in order to accomplish this.
I think it is a type of trade protectionism.” In addition, Wen said he does not think the Chinese
yuan is undervalued.

A letter to the Obama cabinet secretaries — drafted by Reps. Mike Michaud, D-Maine, and Tim
Ryan, D-Ohio, and signed by 130 of their colleagues — said: “The impact of China’s currency
manipulation on the U.S. economy cannot be overstated. Maintaining its currency at a devalued
exchange rate provides a subsidy to Chinese companies and unfairly disadvantages foreign
competitors.”

The letter urges Secretary of Commerce Gary Locke to levy countervailing duties on Chinese
imports, saying China’s actions meet all of the basic criteria for applying the law to illegally
subsidized imports. It also called on Treasury Secretary Timothy Geithner to designate China as a
country that manipulates its currency in the department’s upcoming report on currency manipulation.
After labeling China as a currency manipulator, the congressmen said, Treasury should enter into
negotiations with China regarding its currency regime. They said these actions would “signal the
U.S. government’s willingness to take decisive action against China’s currency manipulation,
including the potential filing of a formal complaint with the World Trade Organization [WTO].”

The congressional letter won high praise from members of the Fair Currency Coalition (FCC),
which includes textile members.

Claiming that Chinese products are frequently priced at less than the cost of materials, FCC
Executive Director Charles Blum said: “This is illegal government subsidization, pure and simple,
and it destroys American jobs. Applying Countervailing Duties is a must have if America is to
achieve sustainable recovery.” 

The Coalition pointed out that export subsidies are prohibited under WTO rules, and, when
subsidies cause injury, WTO rules mandate countervailing remedies.

March 16, 2010

Speaking at the American Apparel & Footwear Association’s (AAFA’s) annual Executive Summit in
Washington, Consumer Product Safety Commission (CPSC) Chairman Inez Tenenbaum urged manufacturers
to build safety into their designs and quality control programs in order to protect consumers and
avoid the necessity for product recalls.

“Being proactive and reaching the highest levels of safety is an imperative that I believe
the CPSC and industry need to achieve,” she said.

Tenenbaum, who has overseen a major reorganization and revitalization of what had become a
moribund agency, said a basic goal has been to “restore consumer confidence  in buying
products that would not harm their children.”

She said that for the first time in years, the commission has its full complement of five
commissioners, its staff will be increased from 385 employees in 2008 to 530 by the end of this
year, and its 2010 budget is double what it was four years ago. She also said CPSC is working with
new technologies to collect and distribute information, is working closer with consumers and
manufacturers, and is encouraging a new openness in its deliberations and actions.

“Over these past months,” she said, “I have made the commission as accessible to the public
as at any time in history. Our public meetings are online — you can watch our commission meetings
every Wednesday morning — we have hosted public workshops to collect input from the public on
major issues and our staff members are presenting useful information to groups like this around the
country. At the same time I have made myself accessible to associations such as AAFA.”

Tenenbaum outlined steps she believes manufacturers should take in order to be “proactive’
with respect to safety. They are:

• Make products that go well beyond the performance standards for ASTM or other voluntary
  standards. Don’t just meet standards. Go above if you can.
• Consider potential safety problems in the design phase, well before certification or entry into
  the marketplace. CPSC is concerned that safety problems may not be detected during existing tests
  and that’s how recalled products end up in the hands of consumers.
• Have a robust quality control process in place for your factories and your manufacturing
  line.
• New thinking is needed for hybrid children’s products such as those with unique components.
  Products like these do not fit nicely into one particular testing or certification program.

Tenenbaum said the CPSC does not want to stifle ingenuity; it just wants to build safety into
designs and have “robust conforming and testing processes.”

Tenenbaum warned that “we are a commission that has new powers. If you do not meet your
obligations to safety and you resist our efforts to conduct a recall, be forewarned this commission
stands ready to be creative in the use of our enforcement authorities.”

March 16, 2010

Since the start of the financial crisis, OC Oerlikon was fighting problems. On Dec. 8, 2009, the
group announced: “As part of its commitment to strengthen the balance sheet and regaining a
sustainable financing base, Oerlikon Group submitted a comprehensive financial restructuring
proposal to its syndicate banks on November 25, 2009. The proposal, designed to ensure long-term
financing for the company, … includes a substantial reduction in current equity capital followed
by a capital increase.”

Financial Problems

However, there is still no quiet moment for OC Oerlikon: Within a few weeks, major
shareholder Viktor Vekselberg and the now 28 creditors must come to an agreement; otherwise, the
group will end up in probate court. At stake are about 16,000 jobs. For weeks, new details
referring to the financial problems have surfaced. Now, Vekselberg and the banks argue about
Oerlikon shares. Experts are not sure if the Russian investor can keep control over the enterprise.
The result will be seen within the next weeks.

A Fight To Survive

On Feb. 26, 2010, the Oerlikon Group released a message that “negotiations with its lending
banks on the restructuring of the Group’s finances are progressing. Oerlikon believes that it will
be able to reach an agreement with its lending banks by the end of March 2010.”

“Good progress has been made on a comprehensive restructuring solution which will provide a
firm foundation for Oerlikon going forward,” stated Vladimir Kuznetsov, chairman of Oerlikon
Group’s Board of Directors. “We are preparing for the prompt implementation of key measures,
including a capital increase during the second quarter.”

Officially, this is a substantial capital cut, but in reality, it’s an equity dilution.
Vekselberg still holds a 44-percent stake in Oerlikon, but the equity dilution is also a threat to
him because of Oerlikon’s 1.8 billion-Swiss franc debt with the banks, which have been asked to
convert a part of it into shares. But the banks are still struggling against this plan of Group
Director Hans Ziegler — they want cash. But even they say that a solution must be found. The end
of the Oerlikon Group is not the solution for them and only brings little money.

But the handwriting on the wall is not good: Without negotiations in detail, it is clear that
the banks are entitled to 20 to 30 percent of all shares at a 300 million-Swiss franc debt swap.
The financial restructuring is not an easy task for Vekselberg if he wants to keep control. To keep
control over the enterprise, the limit is around one-third. However, one-third is not enough for
Vekselberg to keep control. For this, he must buy subscription rights from other existing
shareholders, too. Vekselberg also agreed to buy those shares that no one wants to buy in the
recent capital increase. However, it gets more and more expensive for Viktor Vekselberg. He already
paid around 1 billion Swiss francs since the takeover.

Sacrifices

The banks and Vekselberg have argued for months about who is to make which sacrifices in
Oerlikon’s refinancing. The conflict has escalated now because a group of Anglo-American banks, led
by the Citibank, are fighting against having to write off their debt. They insist that Oerlikon
must pay the total debt of 2.5 billion Swiss francs. It seems that European banks are more ready to
write off their money and to convert debt into equity capital. On the other hand, Vekselberg is
ready to pay some 300 million to 400 million Swiss francs for the capital increase to save the
Oerlikon Group.

The negotiations have become more difficult than ever: In one year, the number of creditors
has increased from 21 to 28. Obviously, the banks are speculating on insolvency if their claims are
not met. In this case, some financial institutions are on the safe side because their liens on
outstanding accounts are covered. In June 2008, Oerlikon had to pledge securities to the most
important banks by depositing a substantial number of shares of subsidiary companies. If the
parties do not come to an agreement, Oerlikon will not be able to pay back 600 million Swiss
francs, due at the end of March. If a refinancing is not successful, insolvency or even bankruptcy
is possible.



March 16, 2010

Singapore-based Huntsman Textile Effects — a manufacturer of chemicals and dyes for finished
textiles and materials, and a division of Huntsman Corp. — has launched ALBAFLOW® UNI-01, a dye
bath penetration agent suitable for dyeing of both natural and man-made fibers. According to
Huntsman, the penetration agent offers good wetting, defoaming and de-aerating performance. Because
it is silicone- and mineral oil-free, it won’t spot the fabric or leave residue on the machinery.

March 16, 2010

Gerber Technology — a Tolland, Conn.-based supplier of integrated software and hardware automation
systems to the sewn products and flexible materials industry, and a business unit of South Windsor,
Conn.-based Gerber Scientific Inc. — reports that Artextyl — a France-based designer, importer
and distributor of casual and outdoor apparel — is implementing Gerber’s YuniquePLM™ product
lifecycle management solution.Artextyl expects the solution will help it decrease development and
sampling cycles, improve quality levels and increase collaboration among suppliers. According to
Gerber, Artextyl will benefit from YuniquePLM’s process-centric design, which will enable teams to
better manage their activities; collaborative quote-, material- and sample-management features for
controlling and managing costs; and the embedded Pantone® color library.

March 16, 2010

NatureWorks LLC, the Minnetonka, Minn.-based manufacturer of biopolymers derived from plant sugars
and offered under the Ingeo™ brand, has announced it will sell a variety of value-added lactide
intermediates used to produce its Ingeo biopolymer. The lactide intermediates will be used in
polymer applications to meet a rapidly increasing global demand for Ingeo plastics and fibers. In
July 2009, NatureWorks announced it had doubled its Ingeo biopolymer supply to 140,000 tons per
year.

“Our offer to supply polymer-grade lactides is a significant step forward in supporting the
end market’s growing desire for products with authentic eco-credentials that meet or exceed
performance expectations,” said Marc Verbruggen, president and CEO, NatureWorks. “And, while we
expect interest in our lactides primarily from specialty polymer producers, we welcome the
opportunity to collaborate in partnerships where we can consider new and tailored grades that will
meet the market needs of tomorrow.”

NatureWorks will supply its lactide partners with a new Ingeo licensee package under which
the partners will have access to trademarks and patents. The company plans to offer 10,000 to
20,000 tons of its lactide product portfolio each year through the program.

March 16, 2010

Switzerland-based Oerlikon Textile Components has introduced Texparts® Zero Underwinding to the
spinning market as an integrated part of Texparts Spindle Units. The technology prevents underwound
yarn ends accumulating on spindle wharves during autodoffing cycles. Underwound ends eventually
must be cleaned from the spindle; and can affect yarn quality, create fiber fly and lead to
unnecessary energy consumption during winding because of friction build-up. According to the
company, up to 10 percent in energy savings can be realized when winding packages on spindles free
of underwound ends.

Oerlikon Textile reports the Zero Underwinding system features a reliable clamp for yarn
ends, fail-safe yarn cutting with a steel yarn cutter, a precisely defined opening and closing
speed based on the centrifugal ball principle, and easy maintenance and handling.

March 16, 2010

Miami-based Radiation Shield Technologies (RST) — developer of Demron™ radiation-blocking products
that provide multi-hazard protection from heat as well as all nuclear, biological, chemical, bomb
and ballistic threats — has announced it will provide its Demron™ personal-protection armor to the
New York City Fire Department (FDNY) to outfit its firefighters as part of its chemical protective
clothing upgrade program.

Demron comprises a radiopaque nanopolymeric compound fused between layers of fabric and is
offered in two product lines including Demron-W for full-body suits, vests and blankets for
first-responder and military applications; and Demron-M X-ray vests, aprons and other products for
medical applications.

FDNY’s Hazardous Materials Company 1 team is utilizing the Demron Two-Ply Radiation Torso
Vest, Demron-W High Energy Nuclear/Ballistic IED RDD RED Shield, and Crew Protection Blanket —
technologies that, according to RST, maximize safety while minimizing the time, manpower and
resources needed to respond to potential emergencies. The vest, which may be worn under most hazmat
suits to protect vital organs, the thyroid and the groin, has been tested by the U.S. Department of
Energy and proven to shield against X-ray and low-energy gamma emissions as well as high- and
low-energy beta and alpha particles. The shield, a flame- and acid-resistant blanket that helps
contain blasts and high-energy radiation sources, has been tested and proven by Street, Md.-based
H.P. White Laboratory Inc. to offer Level IIIA ballistic protection and the highest fragmentation
protection. The blanket, which RST custom-created for FDNY, provides first responders with total
nuclear shielding and also may be used to transport radiation victims without exposing others to
contamination.

March 16, 2010

The president of the National Council of Textile Organizations (NCTO) has urged the Obama
administration to “re-think” including Vietnam in a proposed Trans-Pacific Partnership (TPP)
agreement, claiming that including Vietnam would mean the loss of thousands of U.S. textile
export-related jobs and put at risk hundreds of thousands of related apparel jobs in the
Western  Hemisphere.

Testifying at a hearing on the TPP conducted by the International Trade Commission, NCTO
President Cass Johnson said Vietnam has become the second-largest exporter of apparel to the United
Staes — after China — and its exports are undercutting trade agreements with the North American
and Central American nations with which the United States has free trade agreements (FTAs). While
an imported garment is an imported garment, where the United States has FTAs, the apparel imports
must, for the most part, be made of yarn and fabric from the participating countries.

Pointing out that key details of the agreement have not yet been negotiated, Johnson said
NCTO supports a yarn-forward rule of origin, as it has in other FTAs. “This rule is important,” he
said, “because it ensures that the benefits of the trade agreement stay within thee region itself
and not given to third party countries.” He also called for strong Customs enforcement, which he
says has been lacking with regard to other FTAs.

With respect to inclusion of Vietnam, Johnson said there is a “vast disparity” as to how
trade is conducted between the United States and Vietnam because of Vietnam’s government
intervention in its “command and control economy.” He said, for example, that over the last 18
months, Vietnam has devalued its currency three times in order to gain an increasing share in
global export markets.

Citing what he sees as particular problems with non-marker economies, Johnson said Vietnam’s
apparel exports to the United States in the past four years have increased by $2 billion and
China’s are up by $4 billion at a time when exports from nearly every other country have gone down.

The U.S. Association of Importers of Textiles and Apparel (USAITA) did not testify at the
hearing, but it has submitted comments to the U.S. Trade Representative. USAITA President Julia K.
Hughes noted that the discussions of TPP are in their earliest stages, and she feels it would be a
mistake to write off any country at this point. She says Vietnam, as well as all of the other
countries would have to comply with terms and conditions that are eventually negotiated. She also
said it would be important to have a single rule of origin covering imports from all of the
participants and to avoid the sourcing complications that result from country-by-country different
rules of origin. The National Retail Federation also supports a single rule of origin in new trade
agreements  to help simplify sourcing.

March 9, 2010