The American Apparel and Footwear Association (AAFA) has written to the U.S. Department of Commerce
outlining a 10-step plan to help the Obama administration reach its goal of doubling exports over
the next five years. The plan was submitted to Commerce in response to its requests for comments on
its National Export Initiative.

The association says that at the present time, only a small percentage of its members export,
and those that do are mainly the larger companies. The report says: “Regrettably despite the fact
that apparel and footwear manufacturers are producing some of the most technologically advanced
apparel and footwear in the world, the predominant exports tend to come from the largest suppliers
who ship fabrics overseas for the commercial market and not the end-item consumer products.”

The report, based on a survey of domestic manufacturers, does say the manufacturers benefit
significantly from the U.S. military’s requirement to source domestically for military uniforms,
footwear and other textile-based equipment. Companies that make these products, however, are often
small and medium-sized businesses that have little or no commercial business due to the
specialization of their products.

AAFA says its members for the most part do not utilize any U.S. government assistance, “nor
were they even aware that any U.S. government assistance has been available.”

In order to help turn the situation around and expand exports, AAFA outlined these 10 steps
that it says can help achieve the Export Initiative goals:

• Small and medium-sized domestic manufacturers must be able to get easier access to credit,
  which AAFA says is “the lifeblood of their business.”
• Congress needs to approve the already negotiated free trade agreements with Colombia, Panama
  and South Korea.
• With 95 percent of the world’s consumers outside the United States, this country needs to open
  as many markets as possible by participating in initiatives such as the Trans-Pacific
  Partnership.
• As times change, the United States must ensure that its current trade agreements meet current
  technological developments, intellectual property protection and new market-opening
  opportunities.
• There must be a “successful and ambitious” conclusion of the Doha Round of trade liberalization
  negotiations.
• Everyone must adhere to a rules-based international trading system.
• Just as the United States expects its trading partners to live up to the rules, it must do the
  same thing.
• U.S. exports are not just products made domestically. U.S. manufacturers must make their
  branded products everywhere and sell them everywhere. These products support U.S. design, marketing
  and selling jobs in U.S. companies and bring earnings home.
• If U.S. manufacturers do not appreciate and support the role that imports play in an
  export-driven world economy, they lose their comparative advantages. If the United States refuses
  to buy from others, they will refuse to buy from the United States.
• Setting U.S. sights on doubling exports is great. But thinking and acting within the parameters
  of simply doubling exports limits the possibility of quadrupling U.S. exports.

As the report went forward, AAFA President and CEO Kevin Burke said: “As an industry that
makes everywhere and sells everywhere, the U.S. apparel and footwear industry stands behind the
NEI’s goals. To achieve these goals, the Obama Administration and Congress must work in concert
with stakeholders and the public to leverage and maximize every opportunity for growth.”

He added: “We cannot afford to leave any option off the table. Whether improving access to
export financing, continuing to open new markets, improving existing trade agreements or even
facilitating imports, every component is critical to realizing the final goal.”

In recent weeks, the Rupp Report has informed readers about companies, facing crisis, doing their
homework and preparing for the future. A recent example occurred during ITMA Asia CITME 2010: The
Hong Kong-based Fong’s Industries Group invited the international trade press to a press conference
to announce it is restructuring its marketing and sales organization.

Fong’s was founded in 1963 by Fong Sou Lam to produce dyeing and finishing machinery. Over
the years, Fong’s grew and was the first Asian company to acquire famous European brands.

European Acquisitions

In 2002, Fong’s formed Xorella Hong Kong Ltd. to acquire Switzerland-based Xorella AG, a
designer and manufacturer of steam-setting and conditioning equipment for yarns and fabrics. To
enlarge its portfolio of dyeing and finishing machinery, the group acquired in August 2004 Then
Maschinen- und Apparatebau GmbH and Scholl-Then GmbH, both based in Germany, and consolidated them
into Then Maschinen GmbH. And in April 2006, Fong’s founded Goller Textilmaschinen GmbH to acquire
the fixed assets, inventory and intellectual property of GTM Goller Textilmaschinen GmbH, Germany.

The Fong’s Group employs some 5,000 people, has more than 7,000 customers around the world
and annually produces more than 2,200 sets of dyeing and finishing machines.

New Sales And Services Strategy

At the press conference, Then Director Thomas Archner provided information about the new
sales, marketing and services approach. He explained how this new approach will affect the
structure of Fong’s sales and services organizations and how this new strategy will impact its
European operations.

“The time for lonely players is over,” Archner said. “More than ever, textile producers rely
on total solutions compatible with their entire production chain. It is often the case that
machinery manufacturers are acting like a general contractor.” Up to now, Archner explained, the
members of the Fong’s Group — mainly Fong’s, Then and Goller — had in most cases their own sales
teams, which at times has led to overlap or a lack of information among group members. Also, the
group experienced tough times in the past two years and discussed how one could improve the
response to market and customer needs. According to Archner, the strengths of the Fong’s Group are
strong brands like Fong’s, Then, Goller and others; its role as a well-known and respected market
player with all its brands; state-of-the-art technology; and its total customer orientation with
dedicated manpower in the group’s organizations.

The conclusion of the discussions was to rebuild the Fong’s Group into an efficient sales and
service organization with the strong brands being structured to form product groups.

Joint Sales Force Strategy

Archner said that in the past, the three brands had their own sales organizations and mostly
separate sales agents in countries worldwide, offering only the respective brand. In the future,
there will be one sales team providing information for all three brands. However, the intention is
not to reduce any capacity in the sales organization. Despite this change, the sales staff will
have much more time to focus on fewer markets in which they are responsible.

One Agency Per Country

Archner mentioned that Fong’s National, Then and Goller have agreed to work through one
master agency per country to unify the strengths of the technologies. These changes are what the
market has expected, and the customers will benefit from the new arrangement. This new move is
promoted with the motto: “Think complete, think Fong’s.”

Archner said the group’s strengths for the markets include having an entire product portfolio
from one source and strengthening the focus of existing sales forces in all markets worldwide, thus
resulting in a streamlined but more efficient organization.

Product Groups

The three brands Fong’s National, Then and Goller will be organized into product groups, each
one responsible for its respective bottom line and having its own manufacturing sections. These
groups would allow increased concentration on technological enhancements for existing product
ranges and new product development.

Some products are technologically demanding, and the users need in-depth advice that may
result in further investment in machinery. Archner mentioned if there is need for technological
consultation, product managers will support the sales colleagues and focus on the technical part of
those projects.



New Sales Organization And Legal Structure

The new sales organization divides the world into two parts: East and West. The East, which
covers the major Asian countries and territories, will be served by the Hong Kong and Shenzhen,
China, headquarters. The West — which covers Europe, Africa, and North and South America — will
be served by an office in Schwäbisch Hall, Germany. It is intended that all customers worldwide
will get an immediate response to any request relating to the three brands.

This new organization has a new legal structure: Parent company Fong’s Industries Co. Ltd.,
with its principal place of business in Hong Kong; and subsidiaries Fong’s National Engineering Co.
Ltd. and Fong’s Europe GmbH.

Fong’s Europe GmbH

Archner explained that in the course of developing this new sales and marketing strategy, it
was decided to merge the two European subsidiaries of the Fong’s Group’s European subsidiaries Then
Maschinen GmbH and Goller Textilmaschinen GmbH into Fong’s Europe GmbH. Fong’s Europe is
responsible for handling the West sales territories. As well, it will take part with its respective
employees in activities that mainly include after-sales service, product management, manufacturing
and R&D, supported by finance and administration.

The setup of Fong’s Europe GmbH is as follows: Then Maschinen GmbH was renamed Fong’s Europe
GmbH. Effective July 1, 2010, Goller Textilmaschinen GmbH was merged into Fong’s Europe GmbH.
Headquarters are located in Schwäbisch Hall, and there is a branch office in Schwarzenbach,
Germany.

Fong’s Group East

Walter S.W. Leung, sales director, overseas, Fong’s National Engineering Co. Ltd., Hong Kong,
discussed recent business developments and sales strategies of Fong’s National, noting that the
company has won recognition and excellent goodwill from its textile industry customers,
particularly in the Asia-Pacific region. “With its strong foothold and the new sales organization,
the Fong’s Group will undergo a new worldwide sales and service strategies in the coming months,”
he said.

Fong’s National, with Leung as its director, is responsible for sales and services in the
East, including India, Bangladesh, Indonesia, the entire Asia-Pacific region and surrounding
countries as far as New Zealand, with the exception of Mainland China. Fong’s National’s sales
organization comprises the sales force from the Hong Kong headquarters, the Macau trading office
and the Thailand office.

Enhanced Asian Services

In addition to the Hong Kong and Shenzhen headquarters, Fong’s National established various
after-sales service centers to provide complete, effective and timely customer service in the major
Asian markets. There are local service teams in Bangladesh and Indonesia. The Thailand office
handles the Thailand market and the Association of Southeast Asian Nations (ASEAN) region covering
Vietnam, Cambodia, Laos and Brunei. In 2006, Fong’s Technical Service (PVT) Ltd. was established in
India, with centers in New Delhi, Mumbai and Tirupur to cater the growing Indian market.

To cope with the new sales strategy, the agency networks were consolidated in most of the
East markets such as India, Bangladesh, and Indonesia etc, so that “one-stop shopping” could be
provided.

Leung reported that for the Mainland China market, Fong’s National offers strong sales forces
and technical support from the Hong Kong and Shenzhen headquarters. In addition, regional sales and
service offices were established in Shantou, Fujian, Shaoxing, Changzhou, Nantong, Shanghai, Wuhan
and Qingdao.

The Future

For the future, Archner and Leung are convinced that with the new sales organization, the
Fong’s Group will be in a much better position to further explore and open up new overseas markets.
But another big step is ahead: In 1991, the Group acquired a 110,000-square-meter (m
²) site in Buji, Shenzhen, for new production facilities that came on line in 1995. In
2007, Fong’s acquired approximately 833,000 m
² of land in Zhongshan, Guangdong Province, China; and plans to build a new
manufacturing complex there in order to expand production capacity.

The reasons for the new structure, said Archner and Leung, are clear: “The aim is to secure a
sustainable growth of the Fong’s Group in the worldwide markets by being much closer to its
customers. The relationship with the customers is seen as a business partnership. Only if the
customers are successful in their respective businesses then the Fong’s Group has the chance of
becoming successful, too.” That is true, and time will tell.

July 27, 2010

Israel-based nylon 6,6 and microfiber yarn manufacturer Nilit Ltd. has announced that Taiwan-based
Everest Textile Co. Ltd., a vertically integrated textile manufacturer, has introduced Ever Ultra
Light Weight 5-denier fabric comprising Nilit’s Flat 6/4 yarn. Deemed by Everest Textile to be “the
lightest and finest fabric in the world,” the fabric is windproof and resistant to light rain and
high abrasion; has a silky smooth feel; features a tearing strength of up to 900 grams; and is easy
to pack, according to the company. The fabric is suitable for sporting and casualwear including
running apparel, cycling jackets and mountain-climbing down coats; and sleeping bags and tents.

Everest Textile reports it employed the Everest Sustainability Model of “less is more” in the
development and production processes for the new fabric. “Ever Ultra Light not only answers
consumers’ demands for comfortable, lightweight clothing but also for ecological products since its
light weight effectively reduces energy usage and waste emissions in production,” said Thomas Chiu,
R&D engineer, Everest Textile.

July 27, 2010

Italy-based laboratory equipment and splicer manufacturer Mesdan S.p.A.’s Mesdan-Lab division
introduced several new products at the recent ITMA Asia + CITME 2010.

The Elmatic Automatic Digital Elmendorf Tearing tester for both fine and heavy-duty textiles
and other materials features a measuring range from 200 centiNewtons (cN) to 30,000 cN; automated
test execution including specimen cut, pendulum release, specimen tear, tear force measurement,
pendulum stop and pendulum reposition in the starting position; total safety cover with safety lock
during testing; large liquid crystal display, personal computer (PC) and printer connection;
ability to post results in newtons, kilograms and pounds; Elmatic software for data storage, and
graphic and statistical report of results; high acuracy and repeatability; conformance with
international testing standards; and high productivity.

The MT-5 Evenness tester analyzes periodic mass variations produced during sliver, roving and
yarn manufacturing. The tester utilizes state-of-the-art capacitive sensors to measure evenness,
flaws and yarn count. Features include a measuring range between 80 grams per meter of sliver to Nm
250 yarns; an MT-5 software system that evaluates mass variations, provides spectrogram and
statistical data, and gives coefficient of variation and other percentages; an imperfection
indicator; a measuring device for  thin and thick places and neps in spun yarns; SPC
spectrograph; 306-nanometer maximum wavelength; and PC including monitor and printer.

The company also offers a modular nine-station model of the Martindale Abrasion and Pilling
tester for woven, knitted and nonwoven fabrics as well as leather and other materials. Its modular
design allows it to be equipped with four positions and upgraded to include six, eight or nine
positions. Mesdan reports the tester is very quiet and vibration-free and offers a very precise
Lissajous figure. It conforms to a number of international abrasion and pilling testing standards
and has been approved by United Kingdom-based Marks & Spencer for six of its test methods.
Features include touch screen keyboard, independent digital counting of each testing head, easy
access to tested specimens, key and safety device to stop operation in case of emergency, and
numerous other features.

July 27, 2010

Memphis, Tenn.-based Buckman Laboratories International Inc., a specialty chemical company, reports
it has developed a line of green fire retardant (FR) products that contain no volatile organic
compounds (VOCs). The complete Flamebloc® GS (Green Series) line comprises 13 substrate-specific
chemistries compatible with a variety of materials from paper and wood to plastics and
fabric. 

The line is based on a water-based polymeric amino-polyphosphate chemistry that provides char
forming protection against flame and heat and is manufactured by Houston-based Flame Seal Products
Inc. According to Buckman, the GS products are made using generally-recognized-as-safe (GRAS) raw
materials and do not need halogen to activate their FR capabilities, making them more
environmentally friendly than traditional FR products.

“The market has been looking for a green FR chemistry, and we are pleased to provide the
solution,” said Jim Hachtmann, business manager for Coatings & Plastics, Buckman. “We are
excited about the current and future possibilities of this chemistry and look forward to working
with Flame Seal on the next generation products.”

Products will be available through both Buckman’s and Flame Seal’s sales networks, and a
Solutions Team comprised of associates from both companies will work with customers to provide the
code assistance, testing, support and project management skills.

July 27, 2010

Singapore-based Huntsman Textile Effects — a manufacturer of chemicals and dyes for finished
textiles and materials, and a division of Huntsman Corp. — has redesigned its Novasol® vat dyes
for dyeing and printing cellulosic fibers to improve their durability in harsh conditions. The dyes
are compatible with a variety of finishes including protective finishes, retardants and repellents,
and are suitable for a range of end-uses including military, protectivewear, career apparel,
business shirts and toweling.

According to Huntsman, Novasol vat dyes are produced using a modern standardization unit with
high-performing wet mills that are controlled by state-of-the-art particle size measurement
equipment. Upstream raw materials are tested, and finished goods are certified to comply with the
company’s strict product specifications for applying Novasol vat dyes.

July 27, 2010

Abingdon, United Kingdom — July 13, 2010 — P2i Limited, the world leader in liquid repellent
nano-coating technology, has acquired 100 per cent of the share capital of Surface Innovations Ltd,
a UK-based technology company with a wide range of functional nano-coating patents. The terms of
the deal were not disclosed.

The acquisition expands P2i’s product portfolio beyond its market-leading technologies for
liquid repellency, adding “functional” coating technologies with applications including
anti-bacterial resistance, liquid attracting (super wettable), and many others.

Surface Innovations is a research and development company with 17 patent families that focus
on functional nano-coatings obtained using plasma enhanced chemical vapor deposition. It was
founded in 2001 by Professor Jas Pal Badyal as a spin-out of Durham University. Professor Badyal
will sit on a new Technical Advisory Panel to provide ongoing scientific advice to P2i, as well as
developing new patents and applications for the company.

The acquisition of Surface Innovations comes as P2i gains commercial traction in all five of
its core markets: Electronics, Lifestyle, Energy and Filtration, Life Sciences and
Military/Institutional. In the past year, P2i has tripled its employees to 75 and scaled up its
operations, which are now located across Europe, North America and Asia (China, Singapore, Thailand
and Indonesia).

Carl Francis, Chief Executive of P2i, said: “P2i has excelled in commercializing its liquid
repellent nano-coating technology, proving beyond doubt that plasma processing is a viable, cost
effective industrial process. As our customer base expands and their requirements broaden, the
technology we have acquired will enable us to commercialize new functional coatings that further
enhance the performance of products ranging from consumer electronics to military clothing.

Dr Stephen Coulson, P2i’s Chief Technical Officer, said: “Bringing Surface Innovations into
P2i accelerates our expansion into functional nano-coatings beyond liquid repellency. Its clear
lead in areas such as anti-microbial, super wettable fabrics and protein resistance gives us a
great springboard into the world of functional nano-coatings and allows us to respond timely to
numerous customer requirements.

Prof Jas Pal Badyal, previously majority shareholder of Surface Innovations, commented: “I’m
delighted that my research and patents are now with P2i, which has a proven capability in
commercializing plasma technology. It is the perfect vehicle to deploy these various technologies
into global markets. We have highly complementary skills sets and this acquisition will see many
exciting new inventions launched into P2i’s primary markets.”

Posted on July 27, 2010

Press Release Courtesy of P2i Ltd.

MUNICH, Germany — July, 20, 2010 — Effective immediately, assyst and Ahlers AG, one of Europe’s
leading men’s fashion manufacturers are to cooperate closely with one another in the development of
technological innovations. The companies’ focus will be on process and product development in the
apparel industry.

“In order to achieve our strategic, vertically-oriented objectives – and these include short
time-to-market, high quality-to-market and costs savings – we intend to expand and further optimize
our use of technology. In this respect, assyst gives us a real edge on the market and customized
solutions”, says Uwe Dubbert, Managing Director of the Ahlers Zentralverwaltung GmbH (Central
Administration). “This innovation partnership means a high level of commitment for us. We laid the
groundwork for our agreement during intensive discussions – and now we’re looking forward to a
mutually trusting and rewarding business relationship.”

One of Ahler’s partnership aims is the seamless continuity of processes, from development
right up to production – and to achieve this, the company is equipping all its CAD workplaces with
cad.assyst 2010, the new release. Ahlers is also testing the automarker.com platform for structured
laying and order optimization.

Another cornerstone of this cooperation agreement is the development of an expanded, vertical
framework collection planning program, including complete integration with the Ahlers area
management and ERP software systems.

The collection development will be harmonized throughout the entire range of Ahler’s brands.
The next few months will also see the company’s various PDM systems standardized, based on
plm.assyst. Here particular attention will be paid to the functional system expansion of the PLM
system, which will be optimally supported by the verticalization of the Ahlers Group.

The software company and the apparel manufacturer intend to use these products to realize a
seamless process. To help achieve this objective, Ahlers will participate in the further
development of the software. In return, Ahlers will receive new functions some time before they are
introduced to the market.

In the workwear sector, Ahlers will also test the use of Human Solutions products for the
Pionier Workwear brand name. The use of 3D body scanners and XFit, the mass customization software
will increase the future efficiency of employee measurement in corporate fashion customer projects.

This close cooperation with Ahlers means a huge market advantage for assyst and Human
Solutions as far as knowledge is concerned. “Close cooperation with our customers in the form of
innovation partnerships enables us to accurately gauge the requirements of the market”, explained
Dr. Andreas Seidl, Managing Director of assyst and Human Solutions. “This means we can develop the
right technologies to enable our customers to surmount the challenges in their own markets.
Innovation partnerships are therefore an important integral part of our ‘Your business first’
strategy.”

Ahlers AG

Ahlers AG dates back to the year 1919, when Adolf Ahlers established a cloth wholesaling
business in Jever, Friesland. Today Ahlers is one of the leading manufacturers of menswear in
Europe. An innovative, financially strong company, Ahlers has continually proven during its
90-years in business that it can react flexibly and fast to current market requirements. The
company has been listed on the stock exchange since 1987.

Ahlers has a multitude of brands, covering the requirements of the men’s fashion and apparel
markets. The company’s core competence is the manufacture and sale of contemporary collections,
made-to-measure for strictly-defined target groups. For decades now, Ahlers has been a reliable
partner for medium-sized, trade retailers and is one of the large European players in its sales
channels as well as in its brands and products, which fulfill the highest standards of quality.

assyst GmbH

assyst develops integrated CAD and PLM solutions for the Fashion and Interiors industries. As
the German market leader, assyst offers first-class products. The company operates on a worldwide
basis with other leading companies. The approach to success is: “Your business first”. For assyst,
the customer’s business takes top priority. This is why assyst software targets specific processes,
creating verifiable value added in product development.

The flagship products of this prestigious technology company include:
cad-assyst/smart.pattern; 3D visualization with real body dimensions; PLM for product data and
collaboration management, as well as OnDemand and local solutions for contract optimization and
laying. The assyst GmbH is now a subsidiary of the Human Solutions GmbH. The company’s registered
offices are in Dornach near Munich.

HUMAN SOLUTIONS GmbH

Human Solutions GmbH is a global software and system house with around 70 employees in
Kaiserslautern, Germany and Detroit, USA. The company develops and sells hardware and software
solutions for body scanning, ergonomics and simulation applications. Human Solution’s current
customer list contains more than 300 names, including well-known companies like Daimler, BMW,
Volkswagen, Airbus Industries and the US and Swiss Armies, plus retailers like the chain stores
Karstadt and Kaufhof, fashion houses like Hirmer und Engelhorn, apparel manufacturers such as
Odermark, Scabal, van Laack and many, many more.

Posted on July 27, 2010

Press Release Courtesy of HUMAN SOLUTIONS GmbH

GLEN RAVEN, N.C. — July 27, 2010 — Roger Gant, Jr., who served as President of Glen Raven, Inc.
from 1972 to 1989, has died at the age of 86. Mr. Gant served the company in a variety of
management positions and as President and Board Member for 55 years. He also led the Glen Raven
team that created Glen Raven’s Sunbrella® brand of performance fabrics in the early 1960s.

“It was my good fortune to have Roger as a wise and patient mentor,” said Glen Raven
President and CEO Allen E. Gant, Jr. “As is true for many Glen Raven associates, Roger not only
taught me the principles of good business, but also the value of family, community and people. He
was a good and faithful steward of our company and set us on a solid course that is sustaining even
today.

“Our family and all Glen Raven associates are greatly saddened by Roger’s death. He was an
inspiring leader, a dedicated husband and father and one of the brightest and most compassionate
individuals you could ever care to meet. The world is a better place because Roger was here, and we
will miss him greatly.”

Roger Gant, Jr. was born on May 9, 1924 in Alamance County, a second generation descendent of
John Q. Gant, the founder of Glen Raven, Inc., where Mr. Gant devoted his professional career.

Mr. Gant attended public schools in Alamance County and served with the U.S. Army during
World War II, receiving decorations for meritorious service. After the War, Mr. Gant returned to
North Carolina where he graduated from the University of North Carolina at Chapel Hill. He met his
wife, Rose Anne, while attending college and they returned to Alamance County where they raised
three children, Anne, Alice, and Roger III.

Following graduation from UNC, Mr. Gant joined Glen Raven on October 1, 1948 and held a
variety of positions culminating in president in 1972, a position he held until his retirement from
management in 1989. Mr. Gant also served as a Glen Raven director, beginning with his first
appointment on May 1, 1946. He continued to serve as a director for 55 years until his retirement
from the board on June 7, 2001 and became Director Emeritus.

Mr. Gant was an innovative leader during his many years of service as a manager and director
with Glen Raven. He fostered countless technical, financial and process improvements throughout the
company while also encouraging the professional development of Glen Raven associates through
continuing education.

Under Mr. Gant’s leadership, Glen Raven’s sales more than quintupled and sales per employee
more than doubled. One of Mr. Gant’s most important achievements for Glen Raven was the
introduction of synthetic awning fabrics and creation of the Sunbrella® brand beginning in 1961.
Sunbrella is today one of the world’s leading performance fabrics brands, recognized as the market
leader for awnings, boating and furniture.

Not only did Mr. Gant foster innovation within Glen Raven, he also championed progressive
thinking throughout the textile industry. Under his leadership, the company provided support for
educational programs at N.C. State University, University of North Carolina-Chapel Hill and
Institute of Textile Technology. In recognition of his support for the performance fabrics
industry, Mr. Gant received a lifetime achievement award from the Industrial Fabrics Association
International.

Mr. Gant was also a community leader, involved in numerous nonprofit organizations including
Boy Scouts, Alamance Arts Council, his church and diocese, YMCA, United Way and Salvation Army. He
also served as a trustee for Elon College, now Elon University and community advisor for Wachovia
Bank.

Posted on July 27, 2010

Press Release Courtesy of Glen Raven Inc.