US and Mexican textile industry leaders have launched a joint effort to promote trade
competitiveness in North America and step up efforts to combat illegal Chinese trade, which they
say is a “disruptive force” in world textile markets.

Meeting in Charlotte, leaders of the National Council of Textile Organizations (NCTO) and
Mexico’s Camara Nacional de la Industria Textil (CANAINTEX) said they will focus on issues of
subsidies, customs enforcement and regional trade infrastructure.

Claiming that the two textile industries are “inextricably linked,” CANAINTEX President David
Garcia said the two industries must work together “to secure our collective future.” Officials said
this is particularly important in view of the recent decisions to amend the Central
America-Dominican Republic Free Trade Agreement (CAFTA-DR) to implement regulations covering the
country of origin of pocketing materials in trousers and cumulation of fabric manufactured outside
of the agreement region.

NCTO Chairman Anderson Warlick, said, “China’s textile and apparel complex employs more
workers than the entire US manufacturing sector and today gets more than five dozen subsidies from
the Chinese government, and as a result China has wreaked havoc throughout the world textile and
apparel trading sector each time trade restraints are removed.”

The trade officials, among other things, are urging the US government to incorporate China
into a trade-monitoring program that has been in effect for some 18 months with Vietnam. That move
is strongly opposed by US textile and apparel importers.

Textile industry trade officials agreed to work with textile and apparel organizations from
the CAFTA-DR and Andean nations areas to develop a “coordinated strategy” on trade issues that lie
ahead.

August 5, 2008

The US House of Representatives has passed legislation designed to bolster the apparel industries
of Sub-Saharan African nations and the Dominican Republic by permitting apparel using some fabric
made outside of those areas to benefit from the preferential trade agreements. US textile
manufacturers have gone along with the legislation, because they do not see any major problems
resulting from the use of limited amounts of inputs from outside of those areas.

The bill, passed with strong bipartisan support, would on a trial basis authorize a “2-for-1”
textile and apparel program for the Dominican Republic. Under that program, when producers of
apparel purchase a certain quantity of fabric that is eligible for preferential treatment — for
example, 2 square meters — they can ship an additional square meter regardless of where the fabric
was made.

The bill also repeals the so-called “Abundant Supply” provision of the African Growth and
Opportunity Act (AGOA). That provision in the original law encouraged or required African apparel
producers to first use locally produced fabric before sourcing fabric from other sources such as
Asia. While well-intended, that requirement has not had the desired effect, and in fact has harmed
the apparel industries in some African nations.

The legislation calls for the US government to conduct a study to find new ways of
encouraging investment in African textile manufacturing.

August 5, 2008

Glen Raven, N.C.-based performance fabrics manufacturer Glen Raven Custom Fabrics’ Anderson, S.C.,
manufacturing facility has received South Carolina Environmental Excellence Program (SCEEP)
recognition for its environmental quality program.

The 1 million-square-foot, vertically integrated facility produces Glen Raven’s Sunbrella®
branded awning, furniture and marine fabrics. According to the company, the plant is one of the
most modern in the textile industry, and has initiated environmentally responsible practices such
as recycling and repurposing of waste materials to divert waste from landfills.

“Glen Raven’s Anderson facility has shown a commitment to environmental excellence by
fostering continual improvements,” said Bob King, deputy commissioner for environmental quality
control, S.C. Department of Health and Environmental Control. “Through a comprehensive recycling
program, Glen Raven prevents more than 400 tons of materials, such as packaging and paper, from
going into landfills annually, while also reclaiming 500 tons of  raw material waste for other
product applications. Another demonstration of support for our goal of improving South Carolina’s
environment is their involvement in the development of the Upstate Air Quality Action Plan.”

Glen Raven’s Anderson plant is one of only 31 facilities in the state to have received
recognition from SCEEP, a voluntary initiative established in 1997 to reward environmentally
responsible practices by South Carolina-based facilities.

August 5, 2008

Research Triangle Park, N.C.-based Dow Reichhold Specialty Latex LLC is implementing a price
increase of 6 cents per wet pound for all styrene butadiene specialty latex products sold in North
America, and a price increase of 3 cents per wet pound for all other latexes, excluding products
sold for glove manufacturing. The increases are effective August 8, 2008. The company cited rising
raw material costs in announcing the increases.



August 5, 2008

Effective August 1, or as contracts allow, Florham Park, N.J.-based BASF Corp. will implement price
increases for its acrylic monomers sold in the United States, Canada and Mexico as follows: glacial
acrylic acid, 10 cents per pound; methyl acrylate, 12 cents per pound; ethyl acrylate, 12 cents per
pound; butyl acrylate, 12 cents per pound; and 2-ethylhexyl acrylate, 12 cents per pound. The
company cited continued inflation of energy and raw material costs in announcing the price
increases.

August 5, 2008

US Trade Representative Ambassador Susan C. Schwab has announced the implementation of two
amendments to the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) that should
help US textile and other regional textile manufacturers.

In announcing the action, Schwab said, “The implementation of the CAFTA-DR textile cumulation
provisions and a pocketing amendment makes another important step forward in the integration of
apparel manufacturing in the region.” She added that the action will strengthen the economic
relations between the CAFTA-DR countries and “create new opportunities for the use of US fabric and
yarn in apparel production in the region.”

When the CAFTA-DR agreement was pending in Congress, textile-state members of Congress were
able to secure commitments from the Bush administration and CAFTA-DR countries that changes would
be made in the pocketing provisions of the agreement to require that pocketing used in trousers
that enjoys the benefits of the agreement would have to be formed and finished in the region.
Because most pocketing made in the region is made by US manufacturers, they should benefit from the
implementation of the amendment.

With respect to cumulation, the rules will permit 100 million square meters of woven apparel
containing Mexican or Canadian inputs to enter the United States duty-free. US manufacturers would
have been happier if there were no cumulation from Mexico and Canada. Schwab said that before the
Canadian and Mexican provisions with respect to cumulation can enter into force, several conditions
remain to be fulfilled.

She said the United States anticipates that each of Mexico’s free trade agreements with
CAFTA-DR partners will be amended, effective August 15, to provide on a reciprocal basis for
preferential treatment of Central American goods containing US inputs that are exported to Mexico.
In addition, she said, an agreement between Mexico and the United States on customs cooperation and
enforcement is expected to enter into force by August 15. These steps will allow the cumulation
rule to enter into force with respect to materials from Mexico.

July 29, 2008

Geneva-based SGS S.A., a global provider of certification, inspection, testing and verification
services, has acquired a 50-percent stake in bluesign technologies ag, Switzerland-based developer
of the bluesign® environmental, health and safety (EHS) standard for assessment of materials and
processes used in textile manufacturing. The third-party standard promotes the use of “Best
Available Technology” to reduce air and water emissions and resource usage, and eliminate the use
of harmful materials and practices in textile processing.

SGS will provide its global network of trained professionals to help implement the bluesign
standard in all sectors of the textile supply chain. The SGS/bluesign partnership also will
strengthen bluesign’s position as a provider of EHS expertise to the textile industry by promoting
recognition of the bluesign standard, according to bluesign.

July 29, 2008

Paris-based Lectra, an integrated technology solutions provider for fashion and soft goods
applications, has opened a subsidiary in Bangalore, India. Lectra India will focus on three main
goals: to create and oversee account relationships in the apparel, footwear and fashion accessories
markets; strengthen its presence in the automotive seats and interiors and industrial fabrics
markets; and be a leading solutions provider for the furniture market in India.

For more than 10 years, Lectra has been represented in India by its New Delhi-based partner
Magnum Solutions Pvt Ltd., a provider of CAM and CAD solutions for the apparel, textile, automotive
and aeronautical industries. The company plans to reinforce its partnership with Magnum by adopting
a mixed distribution model, which will allow Lectra to work closely with its clients and supply
customized solutions for their specific needs.

Lectra has appointed Laxmanasandra Jayaram (L.J.) Prashanth as managing director of Lectra
India.

“L.J. Prashanth is in charge of defining, planning, and coordinating all of Lectra’s
activities in India, in direct contact with headquarters and the regional management teams in order
to give a new dimension to Lectra’s development on the Indian sub-continent,” said Daniel Harari,
CEO, Lectra. “With his in-depth understanding of the Indian markets and a wealth of experience
gained in working for international companies, L.J. Prashanth brings with him dual skills which
will be extremely valuable to us.”

July 29, 2008

Milliken Chemical — a manufacturer of additives for plastics, textiles, fibers and other processes,
and a division of Spartanburg-based Milliken & Company — has received the 2008 R&D 100
Award for its for its Millad® NX8000 clarifier for polypropylene. According to the company, Millad
NX8000 yields a 50-percent haze reduction compared with the current industry standard and offers
benefits such as increased material strength and rigidity as well as improved heat and chemical
resistance. The technology also enables the substitution of polypropylene for glass and other clear
materials in packaging and other applications. 

Entek Membranes LLC — a producer of Teklon® battery separators, and the sister company of
Lebanon, Ore.-based Entek International LLC — has been awarded the 2008 R&D 100 Award for its
Xscape™ Membranes. Entek created Xscape Membranes in response to consumers’ concerns that most
waterproof, breathable clothing has limited breatheability and comfort. According to the company,
Xscape technology increases the volume of moisture vapor that escapes, removing the clammy feeling
often associated with waterproof apparel.

The R&D 100 Awards are given by R&D magazine to recognize innovative products
introduced during the year.  

July 29, 2008