Failure of Congress to enact a new Farm Bill has left the textile industry’s cotton textile
competitiveness program in limbo. Although the House passed a bill in July that included a
competitiveness program, the legislation has bogged down in the Senate, where Republicans have
blocked its consideration with procedural tactics.

There is a chance the Senate will take another run at a bill this week, but with the short
time remaining in the current session, it may be impossible to reconcile the House and Senate bills
and send something to the president that he is willing to sign. The legislation pending in both
houses includes a competitiveness program, but is being held up by other issues.

Under a law enacted by Congress in the 1930s designed to bolster the US cotton industry, US
textile mills are virtually prohibited from importing raw cotton. When the world price for cotton
is lower than the domestic price, US textile manufacturers are at a competitive disadvantage. Over
the years, a number of attempts have been made to address the problem and make US manufacturers
more competitive. In 1990, Congress enacted a Cotton Competitiveness Program that permitted a
limited amount of imports and made direct payments to mills and shippers to offset the difference
in the world and domestic prices. That law subsequently was rolled over a couple of times, but in
2004 the World Trade Organization (WTO) ruled that the direct payments were an illegal subsidy, and
Congress in 2005 passed legislation eliminating them.

In an effort to restore the competitiveness program, the House passed a bill providing for
somewhat expanded criteria for opening import quotas and restoration of direct payments. In order
to overcome the WTO problem the bill stipulates that payments of 4 cents per pound have to be used
for acquisition, expansion or modernization of plants.

In view of the limited time remaining in the current session, it is unlikely legislation
combining both measures could be crafted and signed by the president. If nothing is enacted this
year, the current law permitting some imports but no payments remains in effect, and a new Farm
Bill would have to be taken up in January.

November 27, 2007

Textil Rossignolo Ltda, a Brazil-based cotton yarn supplier that specializes in production of Ne 8
denim yarns, has installed six new TC 03 cards from Germany-based Trützschler GmbH & Co. KG.
The installation is part of a company restructuring that began in 2003.

The new cards, which achieve outputs of between 165 and 180 kilograms per hour (kg/h) each,
were installed on one of Rossignolo’s two Trützschler blowroom lines, and replace eight DK 903
cards installed in 2004 that achieved outputs between 120 and 140 kg/h. The TC 03 cards feed
directly into six Schlafhorst Autocoros, having 360 rotors each.

Rossignolo expects to continue its restructuring with installation of a new Trützschler
Wasteomat fiber waste recovery installation unit that will enable blowroom and card waste to be
recovered and introduced back into the line.

November 27, 2007

Switzerland-based weaving preparation and wet finishing machinery producer Benninger AG has
acquired Germany-based wet finishing and dyeing machinery manufacturer Küsters Textile GmbH — a
deal that includes subsidiaries Küsters Far East Ltd., Hong Kong, and Küsters Shanghai Co. Ltd.,
and is retroactive to the beginning of 2007. The price of the transaction will not be disclosed and
is still subject to approval by antitrust agencies in Europe.

Benninger plans to integrate Küsters manufacturing activities into those of its own, and will
continue to operate the Küsters manufacturing facility in Zittau, Germany. In 2006, Küsters
employed 180 people and achieved a turnover of approximately 22 million euros (US$32.6 million).

“With this acquisition, we will attain an excellent market position, which will enable us to
further improve our efficiency towards our customers,” said Daniel Hirschi, CEO, Benninger. “The
synergies we will be able to exploit as a result will contribute to put Benninger in an even better
position regarding global competition.”



November 27, 2007

Switzerland-based specialty chemicals manufacturer Clariant International Ltd. has announced a
global 5- to 12-percent price increase for its products. The company attributes the need to raise
prices to the rapid rate of raw material and energy cost increases.

“In order to meet the future needs of our customers, we have to remain a strong partner, who
is able to further invest in process and product innovations, as well as in availability, quality
and safety of our products,” said Clariant CEO Jan Secher in explaining the necessity for the price
hike.

November 27, 2007

Fall River, Mass.-based Duro Textiles LLC, a provider of technical textile and sourcing solutions
to a range of industries, has launched the Defense™ line of protective fabric solutions for indoor,
outdoor, commercial and residential applications.

The new line consists of: Solar Defense, which imparts resistance of up to 2,000 hours to sun
exposure, depending on color, to printed fabrics; Nano Defense, which provides water repellency and
stain repellency from foods and beverages; Wear Defense, which provides optimal abrasion
resistance; Mildew Defense, which eliminates odors and provides resistance to mildew, bacterial and
fungal growth; and Breach Defense, which prevents liquids from penetrating fabrics.

The Defense product line utilizes a range of proprietary processes and techniques to achieve
their unique properties. Each product can be used alone or in combination with other Defense
products via a layering process. Duro Textiles combines all five solutions in its Ultimate Defense
product. The new solutions do not negatively affect industry fire-resistance tests for upholstery
and are safe for pets and families, according to Duro Textiles.



November 27, 2007

The I-BORO® system — developed by Rieter Automatik GmbH, a Germany-based subsidiary of Rieter
Textile Systems — consists of a safety helmet fitted with a camera, control display screen, mini-PC
and headset. When customer support is needed, the machine operator can put on the helmet and
contact Rieter over the network, using the camera to show a Rieter technician where a problem is
located. The technician then provides the operator with diagnostic steps and instructions for
resolving the problem. The new system also enables instant conferencing via links with other Rieter
specialists when additional troubleshooting is necessary.

According to the company, using the I-BORO system will minimize downtime and eliminate the
need for service technicians to travel to the problem site, resulting in significant cost savings.

November 27, 2007

Effective December 15, Wellman Inc., Fort Mill, S.C., will increase the price of all Fortrel®
polyester staple fiber products by 4 cents per pound.

“The increase previously announced for December 1 has been insufficient to offset the
continued rapid acceleration in the cost of ethylene glycol, a primary raw material used in the
manufacture of polyester staple fiber,” said Steve Ates, vice president, sales and marketing.



November 27, 2007

Fashion merchandising students at the University of Georgia (UGA), Athens, Ga., have designed,
sourced and produced a line of T-shirts and sweatpants that are now available at the UGA bookstore.

Under the guidance of Charles Gilbert — Distinguished Professor of soft goods merchandising
and manufacturing in the College of Family and Consumer Sciences, and a consultant to the apparel
industry for more than 40 years — the students determined the details of each product, made
production arrangements and sought trademark permission from the UGA Athletic Department.

“I wanted the students to learn from start to finish what it means to make a product,”
Gilbert said. “The class that designed the T-shirt focused on domestic manufacturing, while the
other class worked with suppliers located in China.”

Students in Gilbert’s apparel manufacturing class chose Jefferson, Ga.-based Buhler
Quality Yarns Corp. to supply organic Pima cotton for the T-shirt. The cotton was then knit, cut
sewn, dyed and screen-printed by Fessler USA, Orwigsburg, Pa.

Students in Gilbert’s global sourcing class dealt with China-based Loudania for the
manufacture of the sweatpants. “The students get to see every tiny cost of production, especially
overseas,” said Gilbert. “They have to pay duty and quota costs along with air freight, all of
which add an additional $5.66 per garment to the wholesale price.”

The sweatpants retail at the UGA Bookstore for $40, while the T-shirt is $29. The college
will use the proceeds to buy materials and equipment necessary to keep the program going. Gilbert
anticipates next semester’s classes will produce new products.

“Most of these students will be merchandisers or buyers for the retail industry,” he added. “
These courses will make them better merchandisers and buyers with the knowledge they have gained on
design, production and sourcing; but it also gives them more avenues in their careers such as
apparel designers, suppliers and sourcing agents. 



November 19, 2007