In the first news from ITMA Asia CITME 2010 two weeks ago, the Rupp Report indicated some recovery
in certain markets. Since February/March 2010, the markets have been booming, especially in Asia,
and some manufacturers already have very long delivery times. China is the top country, followed by
India, Pakistan, Bangladesh and Indonesia. This is basically thanks to the soaring domestic market
in China and in other countries such as India.

But not only are Asian markets recovering; the huge domestic market of Brazil also is showing
an important upswing. Surprisingly, the exhibitors welcomed many visitors not only from Asia, but
also from Brazil.

Fall In Global Yarn And Fabric Production

However, according to the latest State of Trade Report from the International Textile
Manufacturers Federation (ITMF), Switzerland, the strong global recovery in yarn and fabric
production that was observed after the first-quarter 2009 lows came to an end in the first quarter
of 2010.

Both yarn and fabric production dropped considerably compared to the last quarter of 2009,
though levels were significantly higher than first-quarter 2009 levels. Yarn and fabric production
dropped in Asia and Europe, whereas South and North America recorded stable or higher output levels
in comparison to the previous quarter. Global yarn stocks fell slightly mainly because of lower
inventories in South America, while those in the other regions remained almost unchanged. Global
fabric stocks increased owing to higher inventories in Asia, South America and Europe. Yarn orders
increased in South America but remained unchanged in Europe, while fabric orders rose in both
regions.

Higher Yarn Production, But Lower Fabric Production

Global yarn production dropped by 12.8 percent in the first quarter of 2010 compared to the
previous quarter, mainly as a consequence of 17.3-percent-lower output in China. Europe recorded a
4.0-percent decrease, whereas North and South American production rose by 5.1 percent and 17.4
percent, respectively. Compared to first quarter 2009, all regions recorded higher production
levels. South American yarn production was particularly impressive, recording a 60.4-percent surge.
Europe, Asia and North America also reported higher output levels, at 20.1 percent, 14.6 percent
and 1.5 percent, respectively.

In contrast, first-quarter 2010 fabric production decreased by 9.7 percent, with Asia and
Europe recording 11.4-percent and 3.6-percent lower output levels, respectively. China’s fabric
production fell by 16.4 percent. The guess of the Rupp Report is that these figures reflect lower
exports to Western countries. North American production levels were stable, and South America
recorded 5.3-percent-higher output. Yet, global fabric production increased year-on-year by 8.3
percent. Only North America reported declining fabric production over the year, with a 9.2-percent
drop. Fabric production in Europe, Asia and South America was up by 20.3 percent, 8.3 percent and
2.4 percent, respectively.

Yarn And Fabric Inventories

First-quarter 2010 global yarn inventories dropped slightly, by 0.8 percent, including
respective 4.8-percent, 0.9-percent and 0.6-percent declines in South America, Europe and Asia.
Year on year, world yarn stocks were down by 7.7 percent, with respective 31.4 percent, 8.1 percent
and 4.7-percent drops in South America, Asia and Europe.

World fabric stocks rose by 3.3 percent in the first quarter of 2010, with Asia, South
America and Europe recording respective 4.4-percent, 4.0-percent and 0.8-percent increases; while
North American fabric inventories fell by 0.6 percent. On an annual basis, global fabric
inventories jumped in South America and Asia by 36.0-percent and 11.7 percent, respectively, while
North American and European inventories fell by 15.2 percent and 1.3 percent, respectively.

Europe showed unchanged first-quarter yarn orders and 1.5-percent higher fabric orders
compared with the previous quarter. Brazil’s recovery is confirmed with yarn orders rising by 7.2
percent, while fabric orders jumped by 37.3 percent. Year-on-year, yarn orders in Europe and Brazil
rose by 15.5 percent and 25.3 percent, respectively. Also, fabric orders grew in Brazil and Europe,
by 9.5 percent and 18.1 percent, respectively.

This is good news for the global textile industry. A last word from a textile producer in
Brazil during a visit last week: “I’m happy when the  soccer World Cup is over. People will
hopefully spend some money now in textiles, and not in beer and TV sets like they did in the last
weeks.”

July 13, 2010

New York City-based Olah Inc. — a provider of consulting, sales, education and marketing services
for the textile and apparel industry, and organizer of the Kingpins trade show — has announced
that Wichita, Kan.-based fibers and polymers manufacturer Invista will sponsor the upcoming
Kingpins shows, beginning with the current edition taking place July 13-14 in New York City.
Subsequent shows will be held in Los Angeles, August 3-4; and Hong Kong, November 17-18.

“With the Lycra® fiber brand representing one of the world’s most widely recognized and
preeminent families of stretch fibers, we are thrilled to have Invista as the sponsor of these
shows,” said Olah CEO and Kingpins Founder Andrew Olah.

“The Kingpins Show offers a unique opportunity to meet with brands and retailers in a
relaxed, intimate setting, as well as demonstrate support for our mill customers who are at the
show,” said Jean Hegedus, global marketing director, ready-to-wear bottoms, Invista. “Invista will
be showcasing new developments with its four-way stretch Xfit Lycra fabric technology as well as
innovations with Lycra T400® fiber, Lycra elastane, and durable Cordura® Denim fabrics.”

At Kingpins in New York City, Invista is presenting its latest denim innovations in four
fabric themes: Super Stretch, Super Recovery, Super Comfort and Super Durability. The company also
has announced a trademark and patent protection program for its Lycra T400 fiber.

July 13, 2010

Japan-based Toho Tenax Co. Ltd. — a manufacturer of carbon fibers, and the main carbon fibers
business owned by the Teijin Group — has announced it will increase its endeavors in the aerospace
market. The company plans to supply both its carbon fibers and advanced carbon prepreg products for
a variety of aircraft including regional and business jets with the goal of shifting revenue from
80 percent from yarn sales currently to more than 50 percent from prepreg sales within the next
five to 10 years. The company also reports it hopes to supply 6,000 tons of carbon fiber for a
30-percent market share by the year 2025. This volume of fiber has a value of 100 billion yen.

Other goals the company will undertake include: beefing up direct contracts with aerospace
manufacturers; improving its own organizational structure through the new Aerospace Sales
Department; working closely with other Teijin divisions to engineer high-performance carbon fibers
and resins by improving prepreg productivity, developing mass production technologies, and adopting
innovative materials and technologies from the automotive sector; and launching a thermoplastic
prepreg production facility for high-performance materials to be used as primary structural
materials in aircraft.

Any sales expansions will be supported by new production facilities on an as-needed basis.
Because Toho Tenax signed a contract with EADS, the parent company of Airbus, for carbon fiber
reinforced thermoplastic resin laminate sheeting, it is investing in a new thermoplastic prepreg
line at a Toho Tenax Europe GmbH facility in Germany. The company anticipates production will begin
on the new line in March 2011.

In related company news, Toho Tenax has engineered two carbon fiber composite materials that
look promising for commercial applications: one features polyether ether ketone thermoplastic
resin; and a second uses benzoxazine thermosetting resins. The new materials were designed
specifically for the Airbus A350 XWB and A380 aircraft, respectively.



July 13, 2010

President Barack Obama has directed U.S. Trade Representative Ron Kirk to enter into a new round of
negotiations with South Korea on a revised free trade agreement (FTA) that hopefully can lead to
congressional ratification. The Bush administration concluded a FTA with South Korea in June 2007,
but Congress has not been willing to ratify it in view of problems with market access for U.S. beef
and automobiles and other considerations. U.S. textile manufacturers have been opposed to the
agreement in view of the fact that South Korea has a large, efficient textile industry that poses a
threat to them, and they see little in the way of increased access to the Korean market. While the
current agreement has a yarn-forward rule of origin, U.S. manufacturers are concerned that it does
not provide for effective Customs enforcement in view of what they say is a  “proven history”
of both dumping and transshipments of goods from China, where Korean firms have extensive
investments.

The existing agreement has been attacked by the United Auto Workers and U.S. auto
manufacturers, and Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, will demand
more market access for U.S. beef exports.

Kirk said he welcomes Obama’s direction to complete a FTA by the time the president visits
South Korea in November, which, incidentally, will be after the elections.

Kirk said he has conducted extensive discussions with a wide range of stakeholders and
congressional leaders to gain a detailed understanding of their concerns. He promised that these
discussions will continue throughout the upcoming consultations and negotiations with South Korea.

July 6, 2010

Glen Raven Technical Fabrics LLC — a division of Glen Raven, N.C.-based technical fabrics
manufacturer Glen Raven Inc. — has added fabric lamination capabilities to its Park Avenue
finishing plant located in Glen Raven. The company has moved lamination equipment from its
Statesville, N.C., facility to the Park Avenue plant and is offering its Statesville employees the
opportunity to transfer as well.  The Park Avenue plant’s associates will work on further
enhancing the process and developing new product applications.

“By adding lamination capabilities at Park Avenue, we are leveraging our other existing
resources and capabilities in warehousing, inventory management and materials handling,” said Ricky
Michael, vice president for finishing services, Glen Raven Technical Fabrics. “Best of all, by
bringing lamination under the Park Avenue umbrella, we can explore ways to make these processes
more efficient, and we can also develop new product lines using lamination.”

Current applications for the laminated fabrics include curtains used in mines to increase
ventilation and airflow; pool covers and tarps; and Glen Raven’s AutoGuard product line, which
protects components during vehicle assembly. The mine curtains are manufactured by Glen Raven’s
Wilkinson, W.V.-based subsidiary R.J. Stern.

July 6, 2010

Delta Apparel Inc. — a Duluth, Ga.-based manufacturer of branded and private label activewear —
has signed a letter of intent to acquire Wendell, N.C.-based HPM Apparel Inc., a designer and
marketer of decorated casual apparel and doing business as The Cotton Exchange. Founded in 1984,
The Cotton Exchange sells mostly to college bookstores, the U.S. military and other retailers under
“The Cotton Exchange,” “TCX” and “Just For Us” brands. The company will maintain its headquarters
and operations in Wendell, and its approximately 290 employees will retain their jobs after the
acquisition. 

“We are excited about the acquisition of The Cotton Exchange as it continues our strategy of
growing the company’s business within the college bookstore market and further strengthens our
military and retail channels,” said Robert W. Humphreys, chairman and CEO, Delta Apparel. “In
addition, this business provides us additional U.S. screen print and embroidery capacity, further
enhancing our speed to market initiatives. Delta Apparel is eager to begin working with the
existing management team to continue to grow “The Cotton Exchange” as well as the company’s other
brands.”

The acquisition will include associated inventory, accounts receivables, and fixed assets of
HPM Apparel’s business as well as assumption of certain liabilities. Delta Apparel expects The
Cotton Exchange will add approximately $25 million in sales.



July 6, 2010

Sponsors of legislation to impose heavy penalties on imports from countries that manipulate their
currencies reportedly are seeking a vehicle to win Senate enactment of their bill, and both
supporters and opponents have weighed in heavily through widespread contacts with senators.

The legislation in question is the Currency Exchange Rate Oversight Reform Act, which
currently has 19 sponsors in the Senate. The bill would require the Department of the Treasury to
act when it finds an undervalued currency. It calls for “immediate” negotiations with the country
involved, and if the problem is not resolved within 60 days, punitive measures — such as
preventing the federal government from buying goods and services from those countries — should be
taken. If the problem is not resolved after a year, the bill requires the U.S. Trade Representative
to bring a case against the foreign government to the World Trade Organization (WTO). The bill also
provides the Department of Commerce with formulas to impose penalties for dumping and undervalued
currencies. China’s alleged currency manipulation is the primary target of the legislation.

While anti-currency manipulation legislation has considerable support in both the House and
Senate, the Obama administration is opposed to going the legislative route, preferring instead to
seek reform through negotiations. As a result, the currency reform legislation very likely could
not be enacted on its own merits, so sponsors are considering attaching it as an amendment to
another popular bill that the President would be reluctant to oppose.

A coalition of 28 associations — including the U.S. Chamber of Commerce, the Business
Roundtable, the National Retail Federation and the American Apparel and Footwear Association — has
written to senators urging them to oppose the amendment.

“We agree that China needs an exchange rate that better responds to global trade flow, and
believe that China should implement concrete measures to move toward a market-determined exchange
rate,” their letter says. “We strongly disagree that legislation is the best means to achieve that
goal.” Instead, the letter states, “We believe the United States should continue to work
multilaterally and bilaterally to press China to allow market forces to determine the value of its
currency. Furthermore, we need to see if China’s recent policy shift to allow greater exchange rate
flexibility will lead to meaningful movement in its currency value.”

The letter says the coalition opposes using anti-dumping and countervailing duty laws in
connection with currency imbalances, saying estimations of the correct currency value would be
“inherently subjective, unilateral and potentially politicized.” The letter adds that the
legislation would appear to violate the U.S. commitment to the WTO’s rules  governing the
calculation of anti-dumping duties and the types of subsidies that are subject to countervailing
duties.

The amendment is supported by the Fair Currency Coalition, which includes the  American
Manufacturing Trade Action Coalition, the National Textile Association, the National Council of
Textile Organizations, the U.S. Industrial Fabrics Institute, the  American Federation of
Labor Industrial Council, 10 other trade unions and some 30 manufacturing organizations.

In their letter to senators, coalition members note that the opponent’s letter admits “China
needs an exchange rate that better responds to global trade flows,” but,  “It offers no
practical, logical path to reach its conclusion that the U.S. needs a comprehensive and coordinated
strategy to confront the challenges posed by China’s state capitalism and mercantilist currency
policies. The currency coalition claims there is no reason to expect China to act quickly on
currency reform as China’s President Hu Jintao has emphatically stated that the yuan already is
“close to fair value.”

The coalition rebuts the opponents’ charges that the legislation presents WTO problems,
saying the Senate should ignore the “spurious arguments advanced in the opposition letter and boost
job creation by doing the right thing — passing an effective, WTO consistent trade remedy without
further delay.”

July 6, 2010

The Netherlands-based polyester fiber manufacturer Advansa has introduced three developments using
its thermoregulating, moisture-wicking Thermo°Cool™ technology.

The company has partnered with Hong Kong Non-woven Fabric Industrial Co. Ltd., a Hong
Kong-based fiberfill and insulation manufacturer, to debut ThermoCool Thin, a compact, high-density
insulation that inhibits condensation. The technology features 50- percent multi-channel fibers
that enable condensation to move quickly from the inside to the outside, improving the wearer’s
comfort and also retaining high insulation values owing to the combination of differently
engineered cross sections in the fiber mix. ThermoCool Thin was developed to be used as an
interlining, such as for use as a windbreaker insulator; and also is suitable for baffle
constructions, according to Advansa.

Advansa has teamed with its network of licensed yarn texturizing partners — Spain based
Dúctel S.A., Italy-based ContiFibre S.p.A. and China-based Shanghai Duwell Textile Co. Ltd. — to
employ the latest air-jet texturizing technology on ThermoCool fine fibers to create a man-made,
thermoregulating performance yarn that replicates cotton’s soft structure at a microscopic level.
Developed for use in performance sportswear apparel, ThermoCool Soft’Tech provides superior
evaporative cooling but feels like cotton and has a soft hand, Advansa reports. The yarn initially
was tested at the 2010 Winter Olympic games by the Czech National Olympic Team in first-layer
apparel and reportedly offered outstanding performance and comfort. Advansa will provide retailers
with exclusive Soft’Tech hangtags in addition to ThermoCool hangtags.

The company also has debuted ThermoCool with UPF, a fiber that not only offers cooling and
thermobuffering qualities but also provides ultraviolet protection. Advansa is offering a rating
system with ultraviolet protection factors (UPFs) of 15+, 25+ and 40+ for the fabrics, which are
tested according to various influencing factors and are then given one of the three labels,
according to the level of protection provided.

In other company news, Czech Republic-based Northman Outdoor Ltd. is offering a new line of
ThermoCool performance socks. The socks provide moisture-management and temperature-regulation
properties as well as enhanced air circulation.

July 6, 2010