Greensboro, N.C.-based Unifi Inc., posted its second-quarter (Q2) 2008 earnings results, which,
though still in negative territory, continue to show improvement over year-earlier results.

The company reported a net loss, including discontinued operations, of $7.7 million or 13
cents per share for the quarter ended Dec. 23, 2007, compared to a net loss of $18.2 million or 35
cents per share for Q2 2007. Contributing to the negative figure were restructuring, severance and
impairment charges totaling $8.1 million.

Q2 2008 net sales from continuing operations totaled $183.4 million, compared to year-earlier
net sales of $156.9 million.

“The continuing improvement in our operating results reflects the positive impact of our
strategies to consolidate the US market and reposition the company in the commodity partially
oriented yarn market,” said Ron Smith, CFO. “Volume in the current quarter stayed stronger than
anticipated, despite retail performance and pressure from significant unexpected increases in raw
material prices. These raw material increases were related to temporary issues within the global
supply chain, and we expect prices to remain stable throughout the March quarter.”

February 5, 2008

We are living in a strange world. For centuries, hard work was for most ordinary people the only
way to make money. Of course, the Medici more or less invented the true banking system during the
Italian Renaissance and became not only rich but also very powerful. The end of the Medicis is
history too. However, hard work was the job to do to get out of the social mess and become at least
a member of the lower or middle class.

Gambling

In the Western world, this hard-work attitude has changed dramatically over the past two to
three decades. Making a lot of money is a new game: gambling on the stock exchange. Banks have
become bigger and bigger and made a fortune by buying and selling shares. With the increasing
income of the people, more money has been available and the banks and private traders have
encouraged people to do the same. Some of the most famous and very rich people of today didn’t make
their fortune with their hands, but using their brains.

Shareholder Value

“Lean business” and “shareholder value” have become very popular words among the financial
community. If a company is in trouble and the earnings drop, the first thing to do is to lay off
people. Nobody’s really asking, what went wrong? In the days of the true patrons, it was the
opposite: first, a safe working place for the people; personal pride was a leading and driving
force. More or less, the benefits came automatically; it was an environment of trust and
credibility.

But the true patrons mostly have disappeared. In modern times, CEOs, COOs or managing
directors are leading the listed company working with somebody else’s money. If they win, they get
big bonuses; if they lose, probably a golden parachute is waiting. Or again, more workers are
fired. Who cares for the people? The shareholder value must rise, and the analysts are waiting for
the next quarterly report. No time for reflection — just go.

When I was a boy, my favorite game at home was Monopoly. It was a personal satisfaction to
beat my Dad and a big pleasure for a whole weekend to buy and sell houses and hotels with fake
money. Some time ago, people started to do the same, buying houses. But this time it was the real
world. However, it seems that people and the banks forgot to consider that this time it was real
money. The end of the story is very well-known. The global economic system is jeopardized.

Who’s Supporting Whom?

It’s really a strange world. After wasting billions and billions, the same people are now
crying for help. Around the world, national banks are forced to support the modern Monopoly. And
who’s paying the bill?

My father always said: “Son, just spend your own money, and don’t dream of a dollar if you
can have 50 cents in your hands.” Probably I got the wrong education. But my father also said, you
can always tell the truth if you don’t owe money to somebody else.

January 29, 2008

As the Bush administration enters its final year, US Trade Representative Susan B. Schwab has
outlined an agenda that calls for approval of free trade agreements (FTAs), continuing pursuit of
the Doha Round of trade liberalization negotiations and addressing trade problems with China, “with
dialogue where possible and enforcement when necessary.”

Schwab expressed her concern over some of the legislation pending in Congress, saying, “This
is not a good time for Congress to be seeking quick fixes for complex international economic
challenges.” And she warns that unilateral actions can lead to retaliation.

With respect to specific issues, she called once again for congressional approval of the
pending FTAs with Colombia, Panama and South Korea. US textile and apparel manufacturers and
importers seem to be ready to go along with the Colombia and Panama agreements, but they are widely
split with regard to South Korea, and it appears at this time there is very little likelihood it
will be approved.

In a far-ranging discussion, Schwab called for continuation of a spirit of bipartisan
cooperation that has emerged since the Democrats took control of Congress. “Together we have
started down a new road, but we have yet to reach the final destination — indeed some fear that the
destination keeps being moved,” she said.

Referring to a May 10, 2007, agreement between leaders of Congress and the administration,
Schwab said, “I thought then, and I still believe that we can achieve a unified American approach
to economic engagement and leadership in the world that transcends party, president and Congress.”

Turning to China, Schwab mentioned a number of recent successes with cases the administration
has taken to the World Trade Organization (WTO), pointing out that the United States has won or
successfully settled cases 96 percent of the time. She said the United States is ready and willing
to settle disputes with China in “a business-like manner,” but warned that the admistration has
serious concerns about “unintended consequences of proposed legislation targeting China.”

Although the Doha Round of Trade negotiations has been on dead center for months, she says
the US government will continue to press ahead for an outcome that will “increase economic growth
and development and alleviate poverty by generating new trade flows in agriculture, goods and
services.” Schwab added: “The time for playing games is over. We have a window of opportunity. Let’s
use it and use it wisely.”

She believes the remaining months of the Bush administration will be “very busy on the trade
front, because we have the opportunity to get a lot of work done.”

January 29, 2008

Milliken & Company President and CEO Dr. G. Ashley Allen, will retire May 1, 2008, capping a
38-year career with the Spartanburg-based textile manufacturer. Allen was named president and COO
of the company in 2002 and was promoted to CEO in 2005 to succeed Roger Milliken, who continues to
serve as chairman of the Board of Directors.

Allen earned a bachelor’s degree in chemistry from Washington & Lee University and a
doctorate in organic chemistry from Cornell University. His career with Milliken began in 1969 with
his appointment as a research chemist at Milliken Research Corp. and led him into various
leadership positions including the presidency of the Chemical & Packaging Division, Chemical
& Industrial Specialties Division and Milliken Research Corp. prior to his more recent
positions.

Dr. Joseph M. Salley, promoted to COO in 2006, will succeed Allen as president and CEO, effective
May 1. Salley earned a bachelor’s degree in chemistry from the Citadel, and a masters degree and
doctorate in chemical engineering from Stanford University. He joined Milliken in 1994 as a
research & development engineer for Milliken Chemical and served in various positions including
the presidency of the Industrial Specialties Division, Milliken Research Corp. and the Performance
Products Division prior to his current position.

“Joe Salley inherits the big shoes of Ashley Allen, who has provided tremendous leadership
to this private manufacturing company,” said Milliken. “In elevating Joe to the CEO leadership
role, we are happy to again be promoting from within, which is testimony to Milliken’s commitment
to recruit, educate, challenge and promote the best possible talent. Joe has done an excellent job
in his present capacity and is well prepared for his new responsibilities.”

Allen (left) and Salley

As another testimony to Milliken’s commitment to excellence, the company has once again been
named as one of Fortune magazine’s “100 Best Companies to Work For,” marking the fourth time in
five years that the company has made the list. Milliken ranked 92nd on the 2008 list, and 31st on
the Best Medium-Sized Company list, and is the only South Carolina company to be included.

“Making Fortune’s ‘100 Best Companies to Work For” list for the fourth time is an
exceptional way to cap a great year,” said Salley, who announced the news during Milliken’s Winter
Management Conference. “If you take into account the hundreds of thousands of companies that exist
in the US, it is great recognition for our associates to be ranked among the top 100 of the Fortune
survey.”



January 29, 2008

Germany-based Karl Mayer Textilmaschinenfabrik GmbH has acquired technology and market rights of
Charlotte-based Ira L. Griffin Sons, a manufacturer of sizing units, in addition to ball warpers
and long chain beamers for the denim sector. Karl Mayer plans to integrate the business into its
warp preparation division — which includes a range of warpers, Rotal sizing products and the
recently acquired Sucker weaving preparation line — and expects the acquisition to enhance its
position as a supplier of complete systems solutions to denim manufacturers.


Karl Mayer’s US subsidiary, Greensboro, N.C.-based Karl Mayer North America, will serve as
the primary contact point and will provide customer support for Ira Griffin’s existing customers
worldwide. Karl Mayer’s global support network also includes subsidiaries in Europe, China, Hong
Kong and Japan; as well as agents around the globe.

According to Tony Hooimeijer, president, Karl Mayer North America, Ira Griffin will continue
to work as a contract manufacturer for approximately six months to allow for the transfer of
technology and manufacturing to Karl Mayer. In addition, certain Ira Griffin technical service
employees and spare parts operations will transfer to Karl Mayer North America over the next few
weeks. Hooimeijer added that customers needing technical service and spare parts should continue to
contact Ira Griffin in Charlotte until those transfers are complete.

January 29, 2008

Optimer Performance Fibers, Wilmington, Del., has granted its first license to a textile
manufacturer in Central America for the use of its Dri-release® with FreshGuard® patented
moisture-management technology.

Textufil, an El Salvador-based manufacturer of yarn, thread and finished fabrisc, initially
will use the technology in polyester/cotton fabric containing its Siro Dri-release yarn. In time,
it will add other Dri-release variants including Dri-release E.C.O. (Environmentally Correct
Origins™), Optimer’s newest version that contains recycled polyester and natural fibers.


Dri-release E.C.O. is debuting in Portland, Ore.-based KEEN Footwear’s Off-Road Mt. Airy
sock, which will contain recycled polyester and organic cotton. KEEN, an outdoor footwear and
accessories supplier that provides hybrid performance products and is committed to environmental
and social causes, previewed the sock last week at the Outdoor Retailer show in Salt Lake City, and
will offer it to retailers for Fall 2008.

Optimer also plans to offer a recycled polyester/wool version of Dri-release E.C.O.

January 29, 2008

Cary, N.C.-based Cotton Incorporated’s newest Seal of Cotton trademark, which includes the word “
Natural,” will soon be found on the packaging of 100-percent cotton articles from six companies
offering a range of products from apparel and infants’ products to bedding and home fashions to art
papers to personal-care swabs and pads. The new Natural™ trademark is intended as a reminder to
consumers that in the current eco-conscious environment, cotton is a natural fiber; and also points
to 25 years of environmental improvements in the cultivation of cotton.

“The US cotton industry has made tremendous gains in being a cleaner and greener crop: pesticide
use has been cut in half and the use of irrigated water has been reduced nearly that much,” said J.
Berrye Worsham, president and CEO, Cotton Incorporated. “At the same time, yields have increased on
virtually the same acreage.”

The six companies that have adopted the new trademark include: Greensboro, N.C.-based AQ
Textiles LLC, for its Intellatex™ anti-allergenic bedding; Scranton, Pa.-based Concorde Apparel Co.
LLC, for its corduroy, seersucker and velvet sports coats and men’s apparel; New York City-based
Cutie Pie Baby Inc., for its infant/layette products; Legion Paper, New York City, initially for
its Rising®, Stonehenge and Somerset art paper lines, with others to be added; Los Angeles-based
Filo America, for its cotton swabs, rounds and squares; and Allentown, Pa.-based Sure Fit Inc., for
its organic cotton slipcovers.

Interest in using the Natural trademark is growing, and a number of other brands are also
expected to adopt it, according to a Cotton Incorporated spokesperson.

January 29, 2008

Polymer Group Inc. (PGI), Charlotte, has announced price increases globally across all products.
The company said the hikes will vary based on product composition, but generally will exceed 10
percent.


PGI attributes the increases to record high prices — in some cases, increasing by more than
30 percent — charged by its suppliers  for both resin and fiber-based raw materials including
polyester, polypropylene, pulp and rayon.

January 29, 2008

Hanesbrands Inc., Winston-Salem, N.C., has announced plans to close its narrow elastic production
plants in Advance and Asheboro, N.C., by the end of June 2008, resulting in the loss of
approximately 120 jobs. Going forward, the company will outsource that production, which comprises
waistbands mainly for women’s and girls’ underwear that it already is making up outside the United
States, to suppliers located around the world.

“We regret the need to close these facilities and the effect it will have on our employees and
their communities,” said Gerald Evans, executive vice president and chief global supply chain
officer. “These are well-run operations with very good workforces, but apparel has become a global
industry,” he added, noting that sending elastic produced in its US facilities to its offshore
facilities for inclusion in end products constructed there is not cost-effective.

Evans said the company would attempt to place terminated employees in positions at other
operations when openings become available. Affected employees also will be eligible for severance
benefits and US Trade Adjustment Act assistance.

Hanesbrands currently employs 6,600 people at its various North Carolina facilities including
headquarters, manufacturing plants, distribution centers and outlet stores.

January 29, 2008

Crailar® Fiber Technologies Inc., a wholly owned subsidiary of Canada-based Naturally Advanced
Technologies Inc. (NAT), has signed a Phase II Joint Collaboration Agreement with the National
Research Council (NRC) of Canada in order to further develop Crailar eco-friendly enzyme
technologies for the processing of bast fibers such s hemp and flax for the textile market. The
agreement will enable NAT and the NRC to continue a research and development partnership, formed in
2004 through an initial joint collaboration agreement with the NRC Institute for Biological
Sciences, through May 2010.


Plans call for the investment of more than CAN$3.5 million (US$3.4 million) in research,
development and commercialization of Crailar products. NAT will hold an exclusive worldwide license
from the NRC to intellectual property, including a patent application for hemp fiber extraction,
developed under the agreement.

NAT also plans to begin construction this year on its first Crailar manufacturing facility,
to be built according to Canadian Green Building Council guidelines on an 80-acre site in Craik,
Saskatchewan. The plant will be a primary processing facility utilizing patent-pending
decortication technology developed in collaboration with the Alberta Research Council, and also
will conduct secondary processing of hemp fiber for apparel, carpeting, home furnishings and basic
composite end-uses. It is expected to have an annual production capacity of 114 million pounds of
feedstock fiber, which will be processed primarily using renewable utility resources. Production
startup is scheduled to begin in the first quarter of 2009.

January 29, 2008