Testifying at a hearing called by the US Trade Representative  to assess China’s compliance
with its World Trade Organization commitments, Cass Johnson, president of the National Council of
Textile Organizations, said that unless the US government does something to combat China’s
“predatory export policies,” US manufacturing cannot revive and be competitive.

Last year, the United States had a $37 billion textile and apparel trade  deficit with
China, and while it is off by some 5 percent so far this year, as a  result of the economic
recession, the textile trade deficit worldwide is down by 19 percent, including significant
declines with Asian countries ranging from 90 percent with Hong Kong, 32 percent with Taiwan and 89
percent with Japan.

Johnson said that in the past 10 years, one in four manufacturing jobs in the United States
has been lost, while Chinese exports to the United States have quadrupled.

He cited four areas he believes the US government should address in order to reverse that
trend and strengthen the economy:

• Since China uses its currency as an economic weapon, the US government should cite China as a
  currency manipulator and support legislation that allows US industry to defend itself and its
  workers against predatory practices.
• The United States should condemn actions that China has taken since the global downturn in
  order to boost exports, including pumping $10 billion in new export subsidies into its textile
  sector by increasing export tax rebates by 40 percent.
• The US government should develop a “comprehensive public database” covering China’s laws and
  regulations in order to help the government and manufacturers better understand the Chinese trading
  system.
• The US government should follow through on its commitment to monitor textile and apparel
  exports from China, particularly in those sensitive product categories that were removed from
  safeguard quotas last year.

October 6, 2009

Although congressional ratification of the US-Colombia Free Trade Agreement (FTA) has been held up
for more than year over concerns about rampant crime and labor abuses, the National Council of
Textile Organizations (NCTO) says Colombia has cleaned up its act and the pact should be approved.

In a letter to the chairman of the US Trade Representative’s Trade Policy Staff Committee,
NCTO Vice President Michael S. Hubbard said members of his association who have worked in Colombia
for years through selling offices and joint ventures say they have witnessed the gains Colombia has
made with regard to protection of Colombian workers’ fundamental rights and “an extraordinary
reduction in violence in the country.” He also underscored the importance of more liberal trade
with Colombia to the US textile industry.

Saying that Colombia is a small but important market for US textile products, Hubbard said
US exports are not commodity products but higher-value-added goods such as yarns, premium denim and
wool products. He said at the present time, under the Andean Trade Promotion and Drug Eradication
Act, Colombian exports enter the United States duty-free but US goods going into Colombia are
subject to high tariffs.  He said the FTA would level the playing field and benefit
manufacturers in both countries.

The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) has
opposed the FTA, charging that the Colombian government has turned its back on murders of labor
leaders and organizers. Until the AFL-CIO changes its position, it is unlikely the Obama
administration or the Democratic-controlled Congress will move forward with the pact.

The American Manufacturing Trade Action Coalition, which includes textile manufacturers, is
opposed to the FTA, contending it will result in one-sided trade because Colombia is not a good
market for US manufactured goods. The National Textile Association, likewise, does not support the
pact because it does not meet its criteria for effective agreements.

October 6, 2009

On November 1, Stefan Messer and Dr. Karl-Gerhard Seifert will take over Germany-based Trevira GmbH
— a manufacturer of high-value branded polyester fibers and filament yarns for the apparel, home
textiles and automotive industries as well as hygiene and technical applications — from
India-based Reliance Group. Trevira had filed for bankruptcy in June
(See ”
Trevira
Files For Bankruptcy,” June 9, 2009). It was initially hoped the transfer would occur
October 1, but the deal did not receive European antitrust approval in time.

The transaction includes all registered designs and patents of the Trevira Group; Trevira’s
Germany-based manufacturing facilities in Bobingen and Guben; a production site in Zielona Gora,
Poland; and sales offices in Hattersheim, Germany, as well as other locations.

Approximately 1,450 employees will continue to work with Trevira once the sale is complete.

October 6, 2009

More positive signals are emerging from China: According to a recent report from the Hong Kong
Trade Development Council (HKTDC), the largest fashion showroom in China is ready to be unveiled in
Guangzhou. The construction of the Guangzhou TIT Textile and Garment Creative Park south of the
city’s new TV tower is nearly complete.

The report, prepared by Dionne Liu of HKTDC’s Guangzhou Office, goes on to say:

The Park has apparel, fashion and culture as its theme and provides services on fashion
news, consultancy, garment inspection and testing as well as professional training. It will
encourage prominent Chinese and international fashion designers to set up studios and will invite
leading fashion brands to open showcase events.

The RMB [renminbi] 100 million Park covers an area of nearly 100,000 sqm [square meters].
Inside an actual real park, the Park will have a total floor area of about 40,000 sqm when
completed.

Phase I of the project … will have a garment launch centre, fashion designers’ studios,
lofts, leisure clubs, business dining facilities and others.

The Park can only accommodate about 80 enterprises although more than 200 units and designers
have expressed an interest in moving there.

“You can’t find a similar place anywhere else in China,” said one Park executive. “When
completed, LV, Boss and other leading international brands will move in to share the resources.
We’ll also foster our own talents and international brands and expect to gross over RMB 1 billion
after one year.”

The 4,500 sqm main structure in the middle of the Park will house South China’s largest,
costliest and striking fashion runway.

In addition to the fashion display hall, there’s a reception hall and a news centre at the
northern and southern wings of the building.

Construction has been basically completed and workers are testing the sound system. “Our
sound system is imported from Germany and can be synchronously tuned by technicians in Germany,”
said one manager.

The eastern end of the Park, which houses relatively well-preserved old factory premises
built mostly around 1956, has great historical and cultural value. It will mainly house R and D
offices and showrooms for fashion enterprises and training facilities jointly run by enterprises
and universities.

At the southern end of the Park are small villas designed to serve as work studios and
clubhouses for fashion brands.

The northern end is devoted to offices for fashion enterprises, including those for artists,
sculptors, photographers, advertising companies and other supporting service providers.

The amenities area at the northern end of the central district houses restaurants,
apartments, clubs and red wine cellars. The Park will be managed as a five-star hotel with a butler
service.

Two roads run through the Park in a north-south direction. The one on the eastern side is a
motorway linking the apartments, hotels, clubs and display halls on both sides while the one on the
western side will be lined with stores selling branded luxury goods catering to the needs of
fashion models and showbiz celebrities.

October 6, 2009

Pendergrass, Ga.-based TenCate Geosynthetics North America has created TenCate Miramesh® SG, a new
biaxial geosynthetic grid featuring a man-made grass face. The product was designed to act as a
face wrap offering a finished look in steepened slope applications. TenCate reports that Miramesh,
a combination TenCate’s Miramesh GR biaxial geosynthetic grid with man-made green grass fibers,
provides a layer of ultraviolet protection, which increases stability and doubles long-term
resistance.

“Our new TenCate Miramesh® provides surface erosion protection and secondary reinforcement,”
said Jennifer McKay, marketing manager, TenCate. “The erosion protection facilitates the
establishment of vegetation and provides structural support for the forming of over-steepened
slopes. The secondary reinforcement facilitates compaction and helps prevent surficial sloughing at
the slope face.”



October 6, 2009

Velcro USA Inc., Manchester, N.H., a global conglomerate of companies offering a range of products
including its well-known Velcro® hook and loop fasteners, now offers Velcro Evaptex™ woven fabric
that combines breathability and moisture-wicking properties, allowing air circulation through the
fabric while also maintaining a neutral temperature for the wearer.

“In response to feedback from the medical and emergency responder markets about heat
retention, moisture, weight, comfort and thickness of the fabrics currently available, we set out
to create a new type of fabric that addresses all of these concerns and virtually disappears from
sensory perception when worn,” said Daryl Pfaff, senior marketing manager, who oversaw the
development of Evaptex.

The machine-washable fabric, comprised of two layers laminated together, features a
patent-pending evaporation technology and silver ion-based antimicrobial properties. The
next-to-skin surface has a very soft, comfortable hand, and the outer loop surface is compatible
with Velcro hook materials to facilitate fastener placement and adjustment.

Targeted applications include orthopedic braces, sleep apnea headgear, tracheotomy straps and
other medical devices; as well as turnout gear and fire protection suits and other emergency
responder applications. According to the company, Evaptex is competitively priced for these
applications.

October 6, 2009

Researchers at Raleigh, N.C.-based North Carolina State University’s (NCSU’s) Textile Protection
and Comfort Center (T-PACC) have received a grant from the Federal Emergency Management Agency to
redesign traditional firefighter gloves to have reduced bulk and offer improved dexterity.

“Firefighters frequently say that bulky gloves impede their ability to pick up things and
turn knobs, which can be critical in emergency situations,” said Dr. Roger Barker, professor of
textile engineering, chemistry and science; and T-PACC director. “There have been improvements in
fabrics over the years. What we need now are advances in the functional design of the glove itself
to go along with the advances in glove materials.”

Based on feedback from firefighter interviews, researchers will conduct tests evaluating
thermal protection, grip, breathability and insulation, among other characteristics on a range of
textile materials, and create new designs for the gloves. Resulting prototypes will then be tested
on T-PACC’s PyroHands Fire Test System — a flame-resistant composite-based hand manikin featuring
21 sensors that record heat exposure data to predict burns. PyroHands, whose engineering was funded
by a grant from the US Department of Defense, is an addition to PyroMan, a life-sized manikin that
has 122 heat sensors used to predict the performance of thermal protective clothing.

“By using PyroHands to test glove prototypes, we will be able to measure the distribution of
fire protective insulation over the surface of the hands,” Barker said. “This should help us
develop improved glove designs by showing the locations on the glove where thickness and bulk might
be reduced without compromising thermal protective performance.”

October 6, 2009

England-based Smith & Nephew has added Allevyn Ag Gentle Border and Allevyn Ag Gentle to its
line of Allevyn Ag wound dressings. The products combine the gentle treatment provided by silicone
and soft gel adhesives with the antimicrobial properties of silver.

“The addition of these two new Allevyn Ag variants will undoubtedly add to the growing
success of Allevyn and will enable us to maintain our position as the leading global brand within
the foam dressings market,” said Roger Teasdale, president, Smith & Nephew Advanced Wound
Management. “I am pleased that we have been able to enhance the Allevyn range in a way which offers
additional benefits and choice to our customers, and which will continue to improve the quality of
life for patients living with a wound.”

October 6, 2009

US textile industry representatives in Washington are upset over President Barack Obama’s executive
order barring lobbyists from serving on government advisory groups. The White House issued the ban
on September 24, saying it is part of the president’s efforts to reduce the influence of special
interest groups in Washington.

Cass Johnson, president of the National Council of Textile Organizations (NCTO), said the
action will undercut the textile industry’s ability to inform government negotiators about industry
positions during critical stages of trade negotiations. He charges that the order will hurt small
and medium-sized manufacturers and boost the influence of Fortune 500 companies.

“Because of the White House order, domestic manufacturing groups will now have to choose
between representing themselves before Congress or the Administration, but not both,” he said. “Our
representation on the critical Textile and Apparel Trade Advisory Committee (ITAC 13) will be
sharply curtailed.” All three of NCTO’s Washington staffers are registered lobbyists, and while
NCTO has had representatives on the Industry Trade Advisory Committee (ITAC) on Textiles and
Clothing for many years in the past, none of them would be eligible to participate in meetings
under the new rule. However, other staffers or industry representatives could be appointed, but it
is felt they would not be as effective as Washington representatives who deal with trade issues all
the time and are available to the government on call, particularly when negotiations often involve
prolonged stays overseas.

Over the years, US textile manufacturers have felt that their participation in the textile
and apparel ITAC has played a major rule in influencing the outcome of textile trade agreements.
The textile and apparel ITAC consists of 32 members, with roughly 70 percent representing apparel
importers; 10 percent, textile manufacturers; and the remainder from other interested parties. The
ITAC meets with government officials quarterly and during negotiations of specific agreements. The
industry advisors are provided information about US government positions on a secure website, and
they are invited to comment and evaluate the impact of those positions on US manufacturers. They
also receive private in-person briefings by government officials during negotiations.

Norm Eisen, special counsel to the president for ethics and government reform, said: 
“It is our aspiration that that federally registered lobbyists not be appointed to agency advisory
boards and commissions. Keeping these advisory boards free of individuals who currently are
registered lobbyists represents a dramatic change in the business is done in Washington.”

Eisen said President Obama recognizes that some lobbyists advocate public interest goals
shared by the administration, but “the President made a commitment to the American people to reduce
the influence of lobbyists in Washington out of a belief that lobbyists have too often in the past
achieved disproportionate impact on government decision makers at the expense of broader voices
from the public at large.”

NCTO’s Johnson dismissed the order as “pure political theater,” and he charges that
well-heeled companies will find a way around it because they have the resources to have both
lobbyists and other experts to deal with trade issues. Among other things, Johnson believes, the
order will increase the influence of apparel importers at the expense of textile manufacturers.

Pointing out that the order was issued without an opportunity for industry input, Johnson
urged the president to reconsider the consequences of his action.



September 29, 2009

Trade associations representing fiber, textile and apparel manufacturers and importers have made an
urgent appeal to Secretary of State Hillary Clinton to step up diplomatic efforts to restore
commercial traffic with Honduras, as the political crisis in that country is disrupting trade
throughout the United States and Central America.

In a letter sent to Clinton, with copies to Secretary of Commerce Gary Locke and US Trade
Representative Ron Kirk, the associations said the political crisis has caused commercial traffic
to falter dramatically and, as a result, US textile and apparel plants already are being idled. The
letter said: “We urge the US government to work with the Honduran government in order to ensure
that commerce is fully restored in the region before the textile and apparel sectors of the US and
Central American region are further harmed.”

The associations pointed out that there is an interconnected manufacturing chain whereby
man-made fibers and cotton are spun into yarn at US plants and shipped to Honduras, where they are
made into fabric, and then the fabric is made into apparel in Honduras or shipped to another
Central American country. Under the Central America-Dominican Republic Free Trade Agreement
(CAFTA-DR), the apparel enters the United States duty-free. Honduras is the largest producer of
apparel products in the CAFTA-DR region, each month shipping more than 40 million garments to the
United States containing fabric made of US fiber and yarn.

The associations point out that if any of these segments is curtailed — as is happening with
Honduras — work quickly stops elsewhere.

US textile and apparel trade with CAFTA-DR countries already has fallen off as a result of
the global recession, and the associations pointed out that since January, the region has lost $1
billion in textile and apparel orders. The associations say retailers and other importers of
textiles and apparel are making contingency plans to obtain products from Asia if the disruption is
not soon resolved, and they say that will wipe out the benefits of  US/Central American trade.

Signing the letter were the American Apparel & Footwear Association, the American
Manufacturing Trade Action Coalition, the National Council of Textile Organizations, the National
Textile Association, the National Cotton Council, and the US Association of Importers of Textiles
and Apparel.

September 29, 2009