Spartanburg-based textile and chemical manufacturer Milliken & Company has received Mentor of
the Year awards from the Partnership for a Sustainable Georgia for Milliken Floor Covering’s Live
Oak Complex and Hillside Plant in LaGrange, Ga. Each year, the Partnership for a Sustainable
Georgia presents the award to an organization that is helping the state become more sustainable by
educating other companies on the benefits of environmental improvements such as pollution
reduction.

The Live Oak Complex and Hillside Plant carpet manufacturing facilities joined the
Partnership in 2006 as a Gold Level partner, the highest achievement level. Gold-level
organizations can retain membership for life, as long as they continue to demonstrate improvement.
Milliken Floor Covering, whose carpet products have been certified carbon-neutral, employs
alternative energy in its operation and since 1999 has sent no waste to landfills.

Georgia’s Pollution Prevention Assistance Division (P2AD), a non-regulatory division of the
Georgia Department of Natural Resources, created the Partnership for a Sustainable Georgia to
promote environmental leadership and acknowledge excellence in environmental performance.
Membership in the partnership is free of charge and open to any organization or business that
operates in Georgia.

October 7, 2008

Raleigh, N.C.-based North Carolina State University (NCSU) has opened a development center for a
new atmospheric plasma system that provides an economical, eco-friendly process for the application
of performance properties, such as water and stain repellency and moisture management, to apparel
and other textiles. According to NCSU, clothing finished using the new process may stay clean
longer and have higher comfort levels than garments finished using traditional processes.

APJeT Inc., Santa Fe, N.M.-based exclusive licensee of Atmospheric Pressure Plasma Jet
technology; Allentown, Pa.-based Air Products and Chemicals Inc., a provider of atmospheric gases,
process and specialty gases, and other products and services; and Morrison Textile Machinery Co., a
Fort Lawn, S.C.-based manufacturer of textile dyeing and finishing machinery, are participating
with NCSU in the project.

The new facility will test the atmospheric plasma system and evaluate its efficacy on a range
of materials. Textile chemistry and polymer science undergraduate and graduate students will
receive training on the center’s equipment and will work with laboratory and APJeT staff in testing
the system and developing processes and products. Companies will be able to test the system for
finishing their products, including woven, nonwoven and knit materials.

“The goal is to not only replace conventional application of finishes, but to develop novel
methods and original products you would not be able to get with conventional systems,” said Dr.
Peter Hauser, professor and director of graduate programs, NCSU College of Textiles. “This new
system will benefit the entire textile industry, as well as the state of North Carolina, and shows
that NC State is on the cutting edge of technology.”

By using ionized gas to apply a nanolayer coating to a fabric to provide water and stain
repellency and moisture management, the atmospheric plasma system eliminates the use of water
required for conventional chemical-based wet treatments and, thus, the need for wastewater
treatment as well as the need to heat-cure and dry the treated fabric. The treatment also enables a
fabric to exhibit repellency on one side and moisture management on the other.

October 7, 2008

Many countries around the world are suffering because of the current financial crisis. Hong Kong is
not excluded in this context. However, according to a so-called independent report just published
in Hong Kong, the local banking system is stable and in robust condition, and has escaped the worst
of the current global financial squeeze.

Mainland Banking

The report found that Hong Kong had bounced back well from the Asian financial crisis, and
that its banking system “has so far been relatively unscathed” from the new crisis facing the
global banking system, triggered by the US sub-prime market crisis. A more fundamental issue for
the city’s banking regulator, said the report, will be how best to manage its growing integration
with the banking system on the Chinese mainland.

Opportunities And Risks

The ability to expand into the mainland will create new business opportunities for Hong Kong
banks, which are facing increasing competition in their domestic market. On the other hand, this
move will also bring increased risks. Both the Hong Kong Monetary Authority (HKMA) and the banks
will need to understand the nature of these risks and ensure that there are adequate means in place
to control them. According to the experts, the cooperation with the China Banking Regulatory
Commission will be a fundamental factor.

Professionalism And Effectiveness

The report also found that the HKMA is widely respected within the banking sector for its
professionalism and effectiveness. It is viewed by outside commentators, including international
credit ratings agencies, as being a player in the premier league. The review was initiated last
year by the HKMA and covered a wide range of areas, including recent trends and issues in banking,
the authority’s functions and powers under the Banking Ordinance, its supervisory and policy
framework, authorization of financial institutions, and safety-net arrangements. HKMA CEO Joseph
Yam commented, “[T]he report’s recommendations would be studied, to see how they can be applied to
further strengthen our work in maintaining banking stability.

The latest Moody’s Global Banking Survey also affirmed the strength of Hong Kong’s banking
industry. Issued in June, Moody’s industry outlook for Asia’s banks over the next 18 months is
negative, although not drastically so. A number of mitigating factors will serve to cushion the
impact on the banks of the current credit crunch, the sub-prime crisis, slowing global economies
and rising inflation.



Monetary Statistics For August 2008

Recent statistics by the HKMA report total deposits with authorized institutions decreased by
0.8 percent in August 2008. Hong Kong dollar deposits declined by 0.2 percent during the month, as
the contraction in demand and savings deposits exceeded the increase in time deposits. Foreign
currency deposits also dropped by 1.3 percent in August. Accounting for around 2.9 percent of
foreign-currency deposits, renminbi deposits in Hong Kong contracted further during the month, by
7.7 percent to 71.1 billion renmimbi at the end of August.

Total loans and advances rose by 0.6 percent in August. Loans for use in Hong Kong expanded
by 0.7 percent, and loans for use outside Hong Kong grew by 0.2 percent. Because loans continued to
climb while deposits declined, the Hong Kong dollar loan-to-deposit ratio increased to 83.8 percent
at the end of August.

Seasonally adjusted, the Hong Kong dollar for one month increased by 0.5 percent in August
and rose by 10.5 percent year-on-year. The unadjusted Hong Kong dollar for three months declined by
0.1 percent during the month but expanded by 0.2 percent from a year earlier.

Solid Financials

In a speech to the Hong Kong Association of Banks, Hong Kong Financial Secretary John Tsang
praised the banking sector for its strong financial and liquidity positions. These have cushioned
the economy against the global financial turmoil. He pledged that the government would work with
financial regulatory bodies to ensure stability in the financial market and the economy. Tsang is
convinced that “our strong fundamentals, sound regulatory framework and prudent risk management by
financial institutions provide staunch support to Hong Kong in riding out the storm.” We’ll see in
the (very) near future.

October 7, 2008

Amherst, N.Y.-based Birdair Inc., a specialty contractor for lightweight, long-span roofing systems
and custom tensile architecture applications worldwide, has been chosen as the roofing
subcontractor for three of four primary 2010 Federation Internationale de Football Association
(FIFA) World Cup Stadium projects in South Africa.

Artist’s renderings of Durban Stadium, Durban, South Africa (top), and Nelson Mandela Bay
Stadium, Port Elizabeth, South Africa (bottom), which will feature PTFE membrane roofs designed and
constructed by Birdair Inc. The stadiums are two of the four primary 2010 FIFA World Cup Stadiums
being built in South Africa.

Each of the three athletic facilities will feature a unique roof design. The Green Point
Stadium in Cape Town will have a bowl-shaped glass roof with a mesh liner, and the Durban Stadium
in Durban and Nelson Mandela Bay Stadium in Port Elizabeth will have sweeping architectural
polytetrafluoroethylene (PTFE) fabric membrane roofs. The facilities will offer natural
daylighting, solar shading, open-air design and other features linked to tensile architecture.

“We’re honored that our range of experience in the global stadium sector has led to Birdair’s
involvement in the 2010 World Cup,” said Kevin Mayer, vice president of business development,
sales and marketing, Birdair. “We look forward to realizing each stadium’s custom roofing design.”



October 7, 2008

England-based Tatham Ltd. — a global supplier of drive and control equipment for woolen carding and
nonwoven processing — recently launched the TS Microweigh control system, a new weigh technology
development that monitors and controls the delivery of fiber from a weigh hopper to a carding
machine.

TS Microweigh’s features include automatic fiber weighing and dispensing, a reactive fill
cycle, and Multi Drop capability. The technology can be employed in blending systems, carding
machines, scouring lines, dehairing plants and specialty fiber processing. According to the
company, the system is cost-effective and has been supplied to major yarn spinners worldwide.

Tatham will present its TS series of drive and control equipment at Filtration 2008, to be
held December 9-11 in Philadelphia. The series also includes TS Microfeed, a fiber weight
monitoring system that controls fiber delivery by adjusting the input roller speed according to
fiber density variations; and TS Microbelt belt weighing system, which measures both short- and
long-term fiber density variations using a dual algorithm.

October 7, 2008

Pasadena, Calif.-based Avery Dennison Corp.’s Information and Brand Management Division now is
offering an updated ItemSight™ solution for achieving compliance with Department of Defense (DOD)
textile and apparel radio frequency identification (RFID) mandates.

ItemSight is a software system that enables users to access contracts and orders from the
Virtual Item Manager Apparel Research Network Supply Chain Automation Process (VIM ASAP) via
personal computer. According to the company, it’s the only system that communicates directly with
VIM ASAP and can verify items selected and packaged according to the actual contract.

The new solution’s Subcontractor Module parses orders to an apparel producer’s vendors, thus
allowing the vendors to return data to the producer in a DOD-required format. The module can track
data for each subcontractor, such as contract size, quantity of finished goods and remaining
quantity to be produced.

“The DOD has a rating system that rewards companies that submit data accurately and in
accordance with their RFID requirements,” said Mike Shabet, global sales manager, Avery Dennison. “
The reward is faster payment. Plus, a higher ranking in the rating system shows the company in a
more favorable light for the awarding of future contracts.”

The new ItemSight solution includes ItemSight software, a Psion Model 7525C handheld scanner,
a docking station; a three-year service contract on hardware; and pre-encoded, pre-serialized RFID
carton and pallet labels. Companies that wish to print and encode their own labels can use Avery
Dennison’s AP5.4 RFID label printer and LMS software to do so.

October 7, 2008

The next edition of textile and surface design show Printsource New York will include a special
section of the show dedicated to art licensing in the fields of apparel and home textiles,
stationary and paper goods, home accessories and tabletop, and other consumer goods. The upcoming
show will be held Jan. 13-15, 2009, at the Hotel Pennsylvania, New York City.

The new section will feature international and domestic design studios’ collections created
specifically for upholstery fabrics; curtain and draperies; wallpaper and wall coverings; carpet
and floor coverings; bedding, kitchen and bath linens; tabletop; home accents; paper products; and
quilting. Printsource also will offer seminars and presentations on forthcoming market
developments.

October 7, 2008

A continuing resolution funding virtually all federal government agencies until March 2009 included
$9.5 million for additional textile and apparel customs enforcement officers. The funds are
designed to help the Customs and Border Protection crack down on illegal transshipments of textiles
and apparel.

Approving the funding via a continuing resolution was necessary because Congress has failed
to act on appropriations for the entire fiscal year (FY) 2009 for all agencies except Defense,
Homeland Security and Veterans Affairs.

Rep. Robin Hayes, R-N.C., who succeeded in inserting the customs agents funds when the bill
was pending in the House of Representatives, said, “Getting money specifically to crack down on
illegal textile shipments is a win for our domestic industry,” adding that the funding is “crucial
to continue the battle against massive amounts of transshipped textiles that enter our country
every day and place a tremendous burden on our domestic industry and its workforce.”

The $9.5 million will provide funding for an additional 72 customs agents for several years.

Funding for the government’s long-standing support for textile research conducted through
the colleges and universities that comprise the National Textile Center (NTC) and through the
Textile Clothing Technology Corp. ([TC]
²) was left in limbo by Congress’s failure to act on full FY2009 funding for the
Department of Commerce. At the present time, how much will be appropriated and in what manner
remains in question. In any event, new rules governing appropriations will force the NTC funding to
take on another form, with Congress determining how funds will be allocated between each of the NTC
colleges and universities.

October 1, 2008

DayStrong Rubber Products LLC — a new company established by a group of former managers of Mauldin,
S.C.-based Oerlikon Accotex Texparts Inc. in partnership with Gastonia, N.C.-based
yarn-manufacturing accessories and equipment supplier A.B. Carter Inc. — has acquired Oerlikon
Accotex Texparts’ vulcanized roll and ribbon roll covering businesses. DayStrong will continue to
operate these businesses at Oerlikon Accotex Texparts’ existing location, retaining the associates
and manufacturing processes associated with the acquired businesses.

DayStrong’s management team includes Gordon Culler, president and CEO; Scott Walton, COO; and
Keith Crowe, CFO. The three executives served at Oerlikon Accotex Texparts altogether for 60 years.

DayStrong primarily produces vulcanized rolls for use on Superba® heat-set machinery used in
the carpet industry. The company also manufactures polyvinyl chloride, rubber and cork/rubber
ribbon roll covering products to provide friction on steel rolls used in textile and other
applications.

“This [management buyout] is a great opportunity for our management team to focus on the
production and expansion of the sales of top-quality roll coverings and ribbon products,” Culler
said. “We will continue to provide our customers with the same quality products made with the same
equipment and processes and with the same deep experience of our associates.”

“DayStrong products have a great reputation of excellent quality and service to the markets
they serve,” said Rick Craig, president, A.B. Carter. “We wanted to increase our exposure to
additional quality products serving the carpet and other parts of the textile industry.”

Oerlikon Accotex Texparts also will continue to operate at its existing location in Mauldin
and will continue to serve the textile and carpet industries, offering its cots, aprons and various
rubber products for drawing, roving and spinning applications, and belts for finishing
applications. Sales of these products will be handled by John South Lewis, director of sales,
United States and Canada; and Jim Bane, director of sales, Latin America.

October 1, 2008

Charlotte-based Mallard Creek Polymers, a manufacturer of specialty emulsion polymer products, has
acquired certain performance polymer products and related assets from Research Triangle Park,
N.C.-based Dow Reichhold Specialty Latex LLC for an undisclosed price.

The acquisition includes product formulas, trademarks and patents for some 50 specialty
latex products used in the adhesives, coatings, construction, nonwovens, packaging, personal care,
specialty paper and textile industries, adding to its current offering of carboxylated and
non-carboxylated styrene-butadiene latex and acrylic emulsion products.

Dow Reichhold recently announced that it would close operations, with plans to end all
business activities before the end of 2008.
(See “
Dow
Reichhold To Shut Down Operations,” Aug. 26, 2008). Mallard Creek’s purchase is the final
sale of Dow Reichhold commercial assets, including products and technology.

October 1, 2008