Bala Cynwyd, Pa.-based Recasens USA — a manufacturer of solution-dyed acrylic and vinyl textiles
for the marine and awning and other technical textile applications, and the US division of
Spain-based S.A. Recasens — has added to its line of high-performance textiles with the launch of
four new products.

Recasens’ newest marine textiles include an 86-inch-width version of its Nautimar® marine
fabric, which is polyvinyl chloride (PVC)-coated on one side; and the new Nauti Plus®, a woven
polyester that is PVC-coated on both sides and also is available in an 86-inch width. According to
Recasens, both Nautimar and Nauti Plus are fully waterproof fabrics with good tear and tensile
strength; flexibility for easy installation and storage; and an embossed, silicon finish for simple
maintenance and cleaning. Nautimar comes in eight solid colors, and Nauti Plus comes in white and
snow white.

Recasens has introduced a new technical textile line called SOLAREC® for use in awnings,
veranda covers, window shades and architectural shade systems. SOLAREC offers ultraviolet (UV)
light protection and features a mesh construction that improves airflow and, according to the
company, may reduce energy consumption. The fabric is available in 9 colors. Both are 32 yards long
and 118 inches wide, reducing the need for cutting and seaming of end products.

The company also offers RecScreen®, a line of PVC/polyester shade screen fabrics that feature
antibacterial and fire-retardant characteristics as well as a lead-free coating. According to
Recasens, the fabric filters UV rays and improves air circulation, therefore reducing energy costs
and keeping rooms cooler in the summer. Recscreen also is available in a 118-inch width, making it
easily adaptable for an array of uses.

October 14, 2008

Dalton, Ga.-based carpet manufacturer and floor covering supplier Shaw Industries Group Inc. has
announced plans to permanently shut down its Plant 76 spun yarn facility in Trenton, Ga., because
of decreasing market demand for certain flooring products. The plant, which employs approximately
440 employees, will close by mid-November.

“The widely-publicized downturn in the housing market has caused consumer demand to fluctuate
and shift,” said Hal Long, executive vice president of operations, Shaw. “Changing customer
preferences in the market necessitates that the company respond to emerging purchasing trends and
decrease its production in areas experiencing significant declines.”

Shaw will work to transfer Trenton employees to positions at its other locations, and will
partner with the Georgia Department of Labor to offer counseling, out-placement assistance and
retraining. The company also will organize job fairs to help affected employees who do not relocate
to other Shaw plants find career opportunities.



October 14, 2008

Because of a decline in third quarter earnings due to the unfavorable economic environment,
Chattanooga, Tenn.-based carpet and rug manufacturer The Dixie Group Inc. will begin to implement
cost-reduction initiatives during the fourth fiscal quarter of 2008. The initiatives include
consolidation of the company’s carpet tufting operations in Eton, Ga. into its tufting, dyeing and
finishing facility in Atmore, Ala.; and consolidation of its California tufting and custom rug
operations into its West Coast dyeing and finishing facility.

“We are in the process of quantifying the costs of completing these consolidations,” said Dan
K. Frierson, chairman and CEO, The Dixie Group. “Although the costs of these consolidations will
have a negative impact on results until they are completed in the first quarter of next year, these
actions should reduce ongoing fixed costs, improve operating efficiencies in both our East Coast
and West Coast operations, and significantly improve our operating results, with only a slight, if
any, impact on our production capacity and flexibility.”

The consolidations, along with other restructuring moves under consideration, are expected to
result in a 5- to 7-percent reduction in the company’s workforce.



October 14, 2008

Raleigh, N.C.-based North Carolina State University’s (NCSU’s) College of Textiles will launch its
new Textile Fundamentals distance education courses on October 21 at the Industrial Fabrics
Association International (IFAI) Expo in Charlotte. The textile classes will be conducted via the
Internet and will include instructor commentary, text, pictures, animation and video.

The courses — covering a wide range of topics such as fabric finishing, textile fibers,
fabric preparation and other topics — are targeted mainly to textile industry professionals, but
can be used by others as well, as the topics can be customized according to specific needs. NCSU
also hopes colleges that offer consumer science majors will utilize the classes to provide
supplemental information.

More information including a video about the program can be found at NCSU’s College of
Textiles website, located at
www.texed.ncsu.edu.

October 14, 2008

Optimer Performance Fibers Inc., Wilmington, Del., has signed a licensing agreement with
Turkey-based cellulosic yarn spinner Karsu Tekstil, authorizing Karsu to use its Dri-release®
fabric with FreshGuard® patented moisture-management technology. Dri-release with FreshGuard fabric
comprises a blend of man-made and natural fibers that repels water and wards off odor. Karsu
specializes in spinning cotton and cotton blends, and also engineers fire-resistant blends.

According to Karen Deniz, Optimer’s managing director of marketing, Karsu will first refine
several versions of a polyester/cotton Dri-release with FreshGuard, then concentrate on
manufacturing Dri-release E.C.O. wool blends. “Ultimately, we would like Karsu to develop a new
Dri-release nylon blend as well,” Deniz added.

October 14, 2008

Congress has approved an extension of the Andean Trade Preference Act (ATPA), covering trade with
Colombia, Peru, Ecuador and Bolivia in a move supported by the Bush administration, US textile
manufacturers and importers of textiles and apparel. The extension is for one year in the case of
Colombia and Peru, and six months for Bolivia and Ecuador. The act, designed to help the ATPA
counties in their war against illegal drug production and trafficking, grants duty-free benefits
for products from those countries entering the United States.

US Trade Representative Susan C. Schwab said the act’s extension ensures continuation of
tariff suspensions on a wide variety of products and that this will help keep consumer prices down
on those products “at a time when we all are tightening our economic belts.”

In addition to the ATPA extension, the same legislation contains the so-called two-for-one
provision for the Dominican Republic that allows duty-free entry into the United States of twill
khaki or chino pants made from fabric sourced globally providing the Dominican producers buy twice
that amount of fabric from the United States.

The bill also extends the General System of Preferences (GSP), allowing 132 developing
countries, including 44 least-developed countries, to enjoy duty-free treatment for some 5,000
products. There are some specific exceptions for textile and apparel imports. The bill also removes
the abundant supply provision in the African Growth and  Opportunity Act (AGOA). That
provision requires use of regional denim fabric in denim apparel exports eligible for duty-free
treatment and allows Mauritius to be eligible to use AGOA’s third country fabric provisions.

October 7, 2008

Spartanburg-based textile and chemical manufacturer Milliken & Company has received Mentor of
the Year awards from the Partnership for a Sustainable Georgia for Milliken Floor Covering’s Live
Oak Complex and Hillside Plant in LaGrange, Ga. Each year, the Partnership for a Sustainable
Georgia presents the award to an organization that is helping the state become more sustainable by
educating other companies on the benefits of environmental improvements such as pollution
reduction.

The Live Oak Complex and Hillside Plant carpet manufacturing facilities joined the
Partnership in 2006 as a Gold Level partner, the highest achievement level. Gold-level
organizations can retain membership for life, as long as they continue to demonstrate improvement.
Milliken Floor Covering, whose carpet products have been certified carbon-neutral, employs
alternative energy in its operation and since 1999 has sent no waste to landfills.

Georgia’s Pollution Prevention Assistance Division (P2AD), a non-regulatory division of the
Georgia Department of Natural Resources, created the Partnership for a Sustainable Georgia to
promote environmental leadership and acknowledge excellence in environmental performance.
Membership in the partnership is free of charge and open to any organization or business that
operates in Georgia.

October 7, 2008

Raleigh, N.C.-based North Carolina State University (NCSU) has opened a development center for a
new atmospheric plasma system that provides an economical, eco-friendly process for the application
of performance properties, such as water and stain repellency and moisture management, to apparel
and other textiles. According to NCSU, clothing finished using the new process may stay clean
longer and have higher comfort levels than garments finished using traditional processes.

APJeT Inc., Santa Fe, N.M.-based exclusive licensee of Atmospheric Pressure Plasma Jet
technology; Allentown, Pa.-based Air Products and Chemicals Inc., a provider of atmospheric gases,
process and specialty gases, and other products and services; and Morrison Textile Machinery Co., a
Fort Lawn, S.C.-based manufacturer of textile dyeing and finishing machinery, are participating
with NCSU in the project.

The new facility will test the atmospheric plasma system and evaluate its efficacy on a range
of materials. Textile chemistry and polymer science undergraduate and graduate students will
receive training on the center’s equipment and will work with laboratory and APJeT staff in testing
the system and developing processes and products. Companies will be able to test the system for
finishing their products, including woven, nonwoven and knit materials.

“The goal is to not only replace conventional application of finishes, but to develop novel
methods and original products you would not be able to get with conventional systems,” said Dr.
Peter Hauser, professor and director of graduate programs, NCSU College of Textiles. “This new
system will benefit the entire textile industry, as well as the state of North Carolina, and shows
that NC State is on the cutting edge of technology.”

By using ionized gas to apply a nanolayer coating to a fabric to provide water and stain
repellency and moisture management, the atmospheric plasma system eliminates the use of water
required for conventional chemical-based wet treatments and, thus, the need for wastewater
treatment as well as the need to heat-cure and dry the treated fabric. The treatment also enables a
fabric to exhibit repellency on one side and moisture management on the other.

October 7, 2008

Many countries around the world are suffering because of the current financial crisis. Hong Kong is
not excluded in this context. However, according to a so-called independent report just published
in Hong Kong, the local banking system is stable and in robust condition, and has escaped the worst
of the current global financial squeeze.

Mainland Banking

The report found that Hong Kong had bounced back well from the Asian financial crisis, and
that its banking system “has so far been relatively unscathed” from the new crisis facing the
global banking system, triggered by the US sub-prime market crisis. A more fundamental issue for
the city’s banking regulator, said the report, will be how best to manage its growing integration
with the banking system on the Chinese mainland.

Opportunities And Risks

The ability to expand into the mainland will create new business opportunities for Hong Kong
banks, which are facing increasing competition in their domestic market. On the other hand, this
move will also bring increased risks. Both the Hong Kong Monetary Authority (HKMA) and the banks
will need to understand the nature of these risks and ensure that there are adequate means in place
to control them. According to the experts, the cooperation with the China Banking Regulatory
Commission will be a fundamental factor.

Professionalism And Effectiveness

The report also found that the HKMA is widely respected within the banking sector for its
professionalism and effectiveness. It is viewed by outside commentators, including international
credit ratings agencies, as being a player in the premier league. The review was initiated last
year by the HKMA and covered a wide range of areas, including recent trends and issues in banking,
the authority’s functions and powers under the Banking Ordinance, its supervisory and policy
framework, authorization of financial institutions, and safety-net arrangements. HKMA CEO Joseph
Yam commented, “[T]he report’s recommendations would be studied, to see how they can be applied to
further strengthen our work in maintaining banking stability.

The latest Moody’s Global Banking Survey also affirmed the strength of Hong Kong’s banking
industry. Issued in June, Moody’s industry outlook for Asia’s banks over the next 18 months is
negative, although not drastically so. A number of mitigating factors will serve to cushion the
impact on the banks of the current credit crunch, the sub-prime crisis, slowing global economies
and rising inflation.



Monetary Statistics For August 2008

Recent statistics by the HKMA report total deposits with authorized institutions decreased by
0.8 percent in August 2008. Hong Kong dollar deposits declined by 0.2 percent during the month, as
the contraction in demand and savings deposits exceeded the increase in time deposits. Foreign
currency deposits also dropped by 1.3 percent in August. Accounting for around 2.9 percent of
foreign-currency deposits, renminbi deposits in Hong Kong contracted further during the month, by
7.7 percent to 71.1 billion renmimbi at the end of August.

Total loans and advances rose by 0.6 percent in August. Loans for use in Hong Kong expanded
by 0.7 percent, and loans for use outside Hong Kong grew by 0.2 percent. Because loans continued to
climb while deposits declined, the Hong Kong dollar loan-to-deposit ratio increased to 83.8 percent
at the end of August.

Seasonally adjusted, the Hong Kong dollar for one month increased by 0.5 percent in August
and rose by 10.5 percent year-on-year. The unadjusted Hong Kong dollar for three months declined by
0.1 percent during the month but expanded by 0.2 percent from a year earlier.

Solid Financials

In a speech to the Hong Kong Association of Banks, Hong Kong Financial Secretary John Tsang
praised the banking sector for its strong financial and liquidity positions. These have cushioned
the economy against the global financial turmoil. He pledged that the government would work with
financial regulatory bodies to ensure stability in the financial market and the economy. Tsang is
convinced that “our strong fundamentals, sound regulatory framework and prudent risk management by
financial institutions provide staunch support to Hong Kong in riding out the storm.” We’ll see in
the (very) near future.

October 7, 2008

Amherst, N.Y.-based Birdair Inc., a specialty contractor for lightweight, long-span roofing systems
and custom tensile architecture applications worldwide, has been chosen as the roofing
subcontractor for three of four primary 2010 Federation Internationale de Football Association
(FIFA) World Cup Stadium projects in South Africa.

Artist’s renderings of Durban Stadium, Durban, South Africa (top), and Nelson Mandela Bay
Stadium, Port Elizabeth, South Africa (bottom), which will feature PTFE membrane roofs designed and
constructed by Birdair Inc. The stadiums are two of the four primary 2010 FIFA World Cup Stadiums
being built in South Africa.

Each of the three athletic facilities will feature a unique roof design. The Green Point
Stadium in Cape Town will have a bowl-shaped glass roof with a mesh liner, and the Durban Stadium
in Durban and Nelson Mandela Bay Stadium in Port Elizabeth will have sweeping architectural
polytetrafluoroethylene (PTFE) fabric membrane roofs. The facilities will offer natural
daylighting, solar shading, open-air design and other features linked to tensile architecture.

“We’re honored that our range of experience in the global stadium sector has led to Birdair’s
involvement in the 2010 World Cup,” said Kevin Mayer, vice president of business development,
sales and marketing, Birdair. “We look forward to realizing each stadium’s custom roofing design.”



October 7, 2008