Quaker Fabrics Facing Liquidation

Fall River, Mass.-based Quaker Fabrics Corp., at one time one of the largest producers of jacquard
upholstery fabric worldwide, has announced it will likely liquidate and sell its assets. The
company reports it has not met requirements for committed borrowings under its existing lending
facilities, and therefore cash advances to Quaker Fabrics by its revolving lenders will take place
on a discretionary basis.

The company is seeking out other forms of liquidity, which include debt, equity or a
combination of debt and equity financing, though it has expressed uncertainty as to whether it will
be able to obtain enough liquidity to continue operations after its annual shutdown period this
month.



July 3, 2007

Experience ITMA 2007


A
s the textile industry continues to evolve, so also do the textile fairs that serve the
industry. Global exhibitions such as the American Textile Machinery Exhibition-International®
(ATME-I®), the Osaka Textile Machinery Show (OTEMAS), China International Textile Machinery
Exhibition (CITME) and International Exhibition of Textile Machinery (ITMA) Asia — to mention a few
of the most prominent shows held over the years — have been focal points of many a textile
executive’s calendar. These shows have promised displays of the latest textile innovations, and
presented opportunities for global sales to customers new and old. But, as the textile industry has
changed, so have textile fairs. Some have closed. Some have consolidated.

Only the European edition of ITMA — held every four years since 1951, and in recent years
typically attracting well over 100,000 visitors and more than 1,300 exhibitors at each show —
remains steadfast and unchanged in its quest to provide a comprehensive overview of the
international textile industry. ITMA 2007 will be held September 13-20 at the New Munich Trade Fair
Centre in Munich, Germany.

itmacenter
The New Munich Trade Fair Centre features 17 halls

covering 180,000 square meters of exhibition space.


ITMA Innovations

The European Committee of Textile Machinery Manufacturers (CEMATEX), which owns the show;
organizer Messe München GmbH; and the German Engineering Federation (VDMA) Textile Machinery
Association see ITMA 2007 as “The Place for Innovation” and have made several changes to the show’s
format to keep up-to-date with industry demand and technological trends.

ITMA 2007 will feature an enlarged index of products that will comprise a wider variety of
machinery and accessories in all sectors. The show’s offerings include machinery, equipment, and
auxiliary machinery and accessories for the following sectors: spinning preparation, man-made fiber
production and spinning; winding, texturing and twisting; nonwoven and felting web formation,
bonding and finishing; weaving preparation, weaving and tufting; knitting and hosiery; braiding and
embroidery; washing, bleaching, dyeing, printing, drying, finishing, cutting, rolling and folding;
making-up; laboratory testing and measuring; transport, handling, storing and packing; and
recycling, waste reduction and pollution prevention. Offerings also include design,
data-monitoring, processing and integrated production software; and associated textile and
making-up equipment and services.

Optimized integration of nonwovens technology between the spinning preparation and finishing
halls will enable visitors to see this technology at its most relevant. The nonwovens area will
occupy two halls and will be 50-percent larger than at ITMA 2003 — when it debuted and occupied
just one hall — and will include new machine categories such as aerodynamic web formation and other
special warp knitting and weaving machines for the production of technical textiles.

The accessories and spare parts sector has been restructured so that all measuring and
testing systems are listed separately for each sector.

Textile machinery that used to be listed under “Other” is now listed separately in all
sectors.

Radio frequency identification systems have been integrated into the product index for the
first time, as have transportation and storage technology, management software systems, and safety
engineering products and equipment — which include protective clothing and hearing equipment and
safety-related machine components.

Organizers also have color-coded the different halls according to specific sector, making it
easier for visitors to quickly find their areas of interest.


Registration Reflects State Of Industry

Companies from Asia — in particular, those from Japan, India and China — have already
registered for more exhibition space than they used at ITMA 2003 — a statistic that reflects that
region’s booming industry growth. Japanese companies will occupy an area 200-percent larger than
they occupied at ITMA 2003. The number of Chinese exhibitors has doubled since the last show;
Indian companies will also have a greater presence in terms of both numbers and floor space
occupied.

Turkish exhibitors have registered for 10-percent more space than they occupied at the show
in 2003, and comprise one of the largest contingents of exhibitors outside Western Europe — a fact
that strongly reflects the unprecedented growth in that nation’s apparel and textile industries
during the last decade.


Research And Education Area Premieres

ITMA 2007 will feature the premiere of the Research and Education Area, 600 square meters of
centrally located exhibition and lounge space devoted to presentations from research institutes for
textiles and apparel, and educational organizations and institutions. Organizations from Germany,
Belgium, Switzerland, Italy and India have already registered. The area will serve as a more
intimate venue for displaying research results, services, and process and product advancements, as
well as educational and continued training offers. A Speakers Corner will enable industry experts
from the area to present current projects for textiles and apparel.


Visitor Services

ITMA organizers will offer a range of services during the exhibition to make it as pleasant
an experience as possible. A Visitor Information System consisting of 72 touch-screen information
terminals will be available on the trade fair grounds, and will provide exhibitor information
including hall and booth numbers and full company profile.

An audio guide will be available to rent for a fee of 10 euros (US$13.78) at the West, East
and North entrances to the show. The guide will provide information about innovations and
developments from an array of exhibitors. An accompanying leaflet will give a description of
participating businesses including code numbers and booth locations.

The exhibition site also offers a moving transport system to help visitors efficiently cover
the 180,000 square meters of exhibition space, restaurants, snack bars, cafes, bakeries and prayer
rooms for all denominations. Event organizers have made a special effort to accommodate Muslim
visitors during Ramadan. Jewish visitors will be provided opportunities to celebrate Rosh Hashana,
the Jewish New Year.

Those with ITMA visitor badges may use all public transport operated by the Munich Transport
and Tariff Association or Münchner Verkehrsverbund (MVV) — including underground, local railway,
tram, bus and airport shuttle — free of charge during the fair.


ITMA.com

ITMA organizers have created comprehensive websites that cover every aspect of the show. The
main website, www.itma.com, provides visitors and exhibitors links to basic information about the
show including online registration and an updated exhibitors database; resources for getting to and
staying in Munich, as well as sightseeing opportunities; archived press releases; newsletter
registration; an ITMA history section; and contact information for show organizers and supporting
associations. The site is available in English, German, French, Spanish, Russian, Italian, Czech,
Arabic, Turkish, Japanese, Farsi, Korean and Chinese.

A free service located via the www.my.itma.com link on the ITMA homepage, enables visitors to
organize their visit to ITMA. The service provides an exhibitor database from which users may
select and note companies as contacts, and then save them under a user profile for later access.

Users may also send out a variety of messages, including e-mails to contacts, meeting
requests and Web page recommendations.

The service also offers a Calendar function and a Favourites category for further organizing
contacts.







The Wies’n And Other Munich Attractions

Located in the foothills of the Alps, Munich, or the Monk Settlement, as it was first
known, offers a range of sightseeing opportunities. Munich is home to Oktoberfest, arguably its
most popular event, which originated in 1810, when city citizens were invited to attend
festivities, including horse races, following the wedding of Bavarian Crown Prince Ludwig and
Princess Therese von Sachsen-Hildburghausen. Subsequent annual horse races, held in fields dubbed
Theresienwiese, or Theresa’s Fields, have given rise to today’s festival featuring a variety of
food and drink, plus music, dancing and fair rides held at the same locale — now referred to by
locals as the Wies’n.

The festival traditionally attracts nearly 6 million visitors during its two-week run, making
it the largest festival in the world. Oktoberfest 2007 will kick off Saturday, September 22, when
the lord mayor of Munich will tap the first keg of specially brewed Oktoberfest beer, and will run
through Sunday, October 7.

oktoberfest
Oktoberfest attracts nearly 6 million

visitors to Munich each year.

Munich also offers museums, churches, palaces and other cultural attractions. The Alte
Pinakothek is an Italianate art palace containing European masterworks from the 14th through 18th
centuries, including a vast collection of Peter Paul Rubens’ works. The Bavarian National Museum is
devoted to the art, culture and history of southern Germany. The Deutsches Museum is one of the
world’s largest science and technology museums, spread over 8 miles of exhibit space on eight
floors. Munich’s oldest museum, the Glyptothek, houses Greek and Roman works of art collected by
King Ludwig I during a trip to Italy.

The BMW Museum, scheduled in October to move from its temporary housing to more luxurious
accommodations at the company’s headquarters in Munich, is currently located near the Olympic
tower. The museum offers highlights of the company’s car and motorbike collections.

The Asamkirche, also known as the St. Johann Nepomuk Church, offers eye-catching architecture
and art, while the Marienplatz offers good strolling opportunities through the center of the
Altstadt, or Old City. Here visitors will find their choice of churches, cafes and beer gardens,
including the popular Hofbräuhaus. The Glockenspiel carillon, at the center of the Neues Rathaus,
or New Town Hall, features figures that come to life four times a day.

The Schloss Nymphenburg features exhibits of palace life, as well as gardens and museum
exhibits. The Residenzmuseum highlights the lifestyles of the Wittelsbachs family, who ruled the
city from the mid-13th until the 20th century, and offers portrait and porcelain galleries, an
Asian collection, and theater.


For more information about ITMA 2007, contact 49 89 9 49 1 14 28; fax 49 89 9 49 1 14 29;
visitor@itma.com; www.itma.com.



July/August 2007

ITG’s Pioneer Plant
Lives On As Part Of New Enterprise

Burlington, N.C.-based Pioneer Plant — established in 1923 as the first manufacturing plant for
Burlington Industries, now part of Greensboro, N.C.-based International Textile Group Inc. (ITG), —
is getting a new life under new ownership, with a continuation of operations as a new company run
by the former operation’s management team.

The plant has been purchased from ITG by a unit of Lee Properties, High Point, N.C. The
former ITG manufacturing operation, which includes yarn and warp preparation, has been purchased by
Burlington Manufacturing Services Inc. (BMS), headed by former Burlington and ITG executive Robert
Sills. BMS, which offers technical and production solutions to textile manufacturers and employs
some 100 people, is leasing space in the facility, as is American Yarn, a company formed last year
that has taken over the warping and warp drawing part of the operation.

“Increased needs for short runs and reduced lead times complicated by inventory and costs
constraints are creating new challenges for today’s domestic manufacturers,” Sills said. “Going
forward, BMS will offer companies R&D expertise, product development and advanced equipment
capabilities that lower costs and provide quick-turn solutions.”

Pierre Simmen, president, American Yarn, said the two companies, while separate, will work as
partners. “By sharing knowledge and common resources, American Yarn is confident that the Pioneer
Facility will provide … synergy and create a competitive advantage that is mutually beneficial to
all parties involved ….”

American Yarn employs 15 people and plans to add about 30 new employees over the next two
years. “We’re installing new equipment as fast as we can,” Simmen said.



July/August 2007

Universal Fibers, InterfaceFLOR
Team To Recycle Nylon 6,6

Universal Fibers Inc., Bristol, Va., a manufacturer of solution-dyed yarns for commercial and
transportation carpet and industrial uses, has developed new technology to produce nylon 6,6 fiber
from recycled carpet. The company states the technology provides the first economically viable
process to turn post-consumer nylon 6,6 carpet fiber into new, virgin-quality nylon 6,6 products.

The technology works together with technology introduced by LaGrange, Ga.-based carpet tile
producer InterfaceFLOR LLC, a division of Interface Inc., Atlanta, to separate carpet face fiber
from backing so both materials can be recycled. InterfaceFlor — which has formed an exclusive
alliance with technology developers Sergio Dell’Orco of Italy-based Dell’Orco & Villani S.r.l.
and Frank J. Levy of Quogue, N.Y.-based Stellamcor Inc., co-owners of Post Consumer Carpet
Processing Technologies LLC (PCC), Quogue — expects to be able to divert 30 million pounds of nylon
6,6 and other carpet from landfills annually using one machine that features the technology. The
company hopes to put additional machines into service around the world, said Eric Nelson, vice
president, strategic alliances, Interface Americas.

“In the past, there have been ways to downcycle nylon 6,6 into other products, but this is
really the first method to get it back into fiber,” Nelson said.

“Our industry as a whole has particularly struggled with developing a viable way to recycle
nylon 6,6, the most prevalent fiber used in the commercial market,” said David Hobbs, president,
InterfaceFlor Commercial. “[This] innovative technology … represents a breakthrough for our
industry and furthers our progress toward eliminating virgin materials in our products.”

InterfaceFlor previewed ReEntropy™, the first commercial carpet line made with recycled nylon
6,6 fiber, at the recent NeoCon contract interiors trade fair.

“The ability to now reprocess post-consumer nylon 6,6 carpet fiber and produce high-quality
product is a milestone for the flooring industry and the environment,” said Bill Goodman, vice
president, sales and marketing, Universal Fibers. “This is another example of our efforts to
innovate in the industry and bring a sustainable solution to a product. We encourage all our
customers to innovate with us in this way.”



July/August 2007

Rohm And Haas Launches Environmentally Friendly Aquaset™ Binders

Philadelphia-based Rohm and Haas Co.
reports its new Aquaset™ acrylic thermosetting binders are providing manufacturers of high-quality
fiberglass insulation with a cost-effective, eco-friendly alternative to formaldehyde resins
traditionally used in the production of fiberglass batting. The Aquaset binders produce only water
during the curing process rather than emitting toxic compounds such as methanol, phenol and ammonia
and formaldehyde — which continues to be emitted once the curing process is over and throughout the
end-product’s lifecycle. The result is a reduction or possible elimination of emissions and
volatile organic compounds in the manufacture of insulation batting.

Aquaset technology is non-combustible, non-hazardous, recyclable and non-flammable —
properties that have earned it a 1-0-0 safety rating from the Occupational Health & Safety
Administration. Its use results in insulation batting that is compressible and moldable, and that
offers recovery comparable to or better than recovery in insulation made with formaldehyde resins,
according to Rohm and Haas.



June 26, 2007

SDC Enterprises Moves To New Location

SDC Enterprises, the wholly owned
trading subsidiary of the Society of Dyers and Colourists and manufacturer of color fastness
testing products, has moved to a larger location in England: Unit 29 Pitcliffe Way, Upper Castle
St., Bradford BD5 7SG England; 44 1274 750 160, 44 1274 750 161 (sales); fax 44 1274 750 162.

“This is a natural and logical move that will enable us to better serve our customers
worldwide,” said Lynne Ramsden, general manager, SDC. “We had outgrown our existing premises and
needed somewhere more suited to our future expansion plans; our aim is to dispatch even the largest
order on the same or next day anywhere in the world.”



June 26, 2007

WL Ross, ITG Team With Phong Phu To Explore Opportunities In Vietnam

 
New York City-based investment firm
WL Ross & Co. LLC and its majority-owned unit International Textile Group Inc. (ITG),
Greensboro, N.C., have signed memoranda of understanding with Phong Phu Corp., a state-owned
Vietnam-based cotton textile and apparel manufacturer, to explore opportunities to expand their
joint-venture operations and strategic investments in Vietnam.

WL Ross and Phong Phu will team to explore real-estate-related joint ventures, and a
possible investment and privatization assistance by WL Ross in Phong Phu “as the latter privatizes
through an initial public offering.”

“Vietnam is among the most rapidly growing countries in the world, and we are delighted to
have the opportunity to commit additional capital to support that growth,” said Wilbur L. Ross Jr.,
chairman, WL Ross. “We are especially eager to broaden and deepen our relationship with Phong Phu
and are committed to help that management to change from being a State Owned Enterprise to becoming
a privatized business. “The Memoranda of Understanding that we have just signed with President
Nguyen Minh Triet provide for the basis for expanding our mutual relationship.”

ITG — whose Burlington WorldWide division has partnered with Phong Phu to build an $80
million cotton fabric and apparel manufacturing complex in Da Nang, Vietnam — and Phong Phu will
consider an additional investment of $100 million for operating support, possible expansion of the
Da Nang complex and other textile and/or apparel manufacturing joint ventures.



June 26, 2007

Doha Round Of Negotiations Suspended Once Again

 
The latest breakdown of talks related
to the Doha Round of trade liberalization negotiations was not all that disappointing to US textile
representatives in Washington who have felt all along they had more to lose than to gain from the
round. They were afraid their tariffs could be cut without getting any significant overseas market
access in return. Top trade officials of several leading players in the international trade picture
had scheduled four days of negotiations in Potsdam, Germany, but the talks were broken off
prematurely when it became clear they were getting nowhere.

US Trade Representative Susan C. Schwab expressed her “deep disappointment” but said the
United States remains committed to a successful round and the support of the World Trade
Organization. She said the United States has been looking for an “ambitious and balanced” outcome,
but that apparently was not developing. The major stumbling blocks were Brazil’s stance on
agriculture, India’s position on services, and differences on manufacturing issues. “The United
States has shown and will continue to show our willingness to be constructive, a constructive
negotiating partner to anyone who wants to negotiate in good faith, but we cannot negotiate with
ourselves or with those who draw such red lines as to make it impossible to proceed,” Schwab said.
She added that the rigidity of the positions taken by Brazil and India seem quite distant from the
interests of the developing countries.

Expressing his “great disappointment” with the collapse of the talks, the American Apparel
and Footwear Association’s President Kevin M. Burke said, “The citizens of the United States,
India, Brazil, the European Union and the world are the true losers in the most recent collapse of
the Doha process.”



June 26, 2007

PGI Increases Global Prices

 
Polymer Group Inc. (PGI), Charlotte,
has announced international price increases of between 3 and 12 percent for most of its converted
and roll goods products.

“Prices for our raw materials eased in late 2006, but have since increased steadily as the
capacity of our suppliers remains tight,” said Veronica M. “Ronee” Hagen, CEO, PGI. “We have been
managing some of the cost increases throughout the year. However, as certain raw materials have
seen dramatic increases in recent months, we are compelled to make necessary adjustments.”

The price of pulp-based materials such as viscose and petroleum-based materials such as
polyester, polypropylene and polyethylene have increased as much as 30 percent over the last six
months, according to the company.



June 19, 2007

Dow Announces Price Increases

The Dow Chemical Co., Midland, Mich.,
has announced price increases effective July 1, 2007, for several products.

The company and its affiliates will raise the prices of butyl acrylate and 2-ethylhexyl
acrylate by 5 cents per pound in North America; US$120.00 per metric ton in Asia Pacific, Middle
East/Africa and Latin America; and 90 euros per metric ton in Europe. Prices of ethyl acrylate,
methyl acrylate and glacial acrylic acid will increase by 3 cents per pound in North America;
US$70.00 per metric ton in Asia Pacific, Middle East/Africa and Latin America; and 50 euros per
metric ton in Europe.

Dow will raise off-list prices in North America of Carbowax™ and Carbowax Sentry™
polyethylene glycols by 2 cents per pound; Tergitol™ nonylphenol ethoxylate surfactants by 2 cents
per pound; and Triton™ octylphenol ethoxylate surfactants by 5 cents per pound.

Also effective July 1, 2007, or as contracts allow, Dow will increase the list and off-list
prices of its oxygenated solvents products in North America from between 3 to 5 cents per pound.
According to the company, the increase is due to a tight supply of butanol, butanol derivatives and
chemical feed stocks combined with an increase in raw material costs.



June 19, 2007

Sponsors