Saurer To Acquire Day International’s Textile Products Group

Dayton, Ohio-based Day International
Inc. has agreed to sell its Textile Products Group to affiliates of Switzerland-based Saurer AG for
an undisclosed price. Closing, subject to regulatory approval, is expected by mid-June.

Day International is a manufacturer and distributor of highly engineered consumable products
for digital, flexographic and offset printing processes. The company’s Textile Products Group — a
major supplier of consumable, precision-engineered rubber cots, aprons, compressive shrinkage belts
and other fabricated rubber products used in yarn spinning and glass-fiber-forming applications —
employs approximately 270 people at its production facilities in Greenville and Germany, and sales
offices in Italy, Turkey and Hong Kong. In 2005, it realized sales totaling approximately $45
million.

Day’s textile products are sold directly to spinning mills globally and to textile machinery
original equipment manufacturers. Cots and aprons are marketed under the brands Accotex® and
Daytex®. Its Superba® rolls are used to seal tunnels used in carpet yarn processing.

“Day views this transaction as an opportunity to focus on our core image transfer business
while aligning our Textile Products Group with a successful, market-leading global company that is
focused on providing its customers full-service textile solutions,” said Dennis Wolters, president
and CEO, Day.

According to Day spokesman Dwaine Brooks, the acquisition by Saurer is a good fit for the
Textile Products Group. “We were wanting a good situation for our associates in the group, one of
whom has been with us for 65 years,” he said. “We feel good about the whole deal.”

The acquisition is expected to further strengthen Saurer’s components business, enabling the
company to offer a complete solution to influence ring-spun yarn quality.


May 22, 2006

Ciba To Launch High IQ™ Branding Paradigm

Switzerland-based Ciba Specialty
Chemicals’ Textile Effects Segment reports its new High IQ™ label for textile colors and effects
will clearly describe a number of the company’s innovative apparel effects and effect combinations,
such as Lasting Color and Cool Comfort, resulting in added value for the entire textile chain and
the consumer.

“The proliferation of labels and hangtags on garments in stores can be confusing, especially
as the information they contain is often expressed in complicated technical language,” said Eric
Marohn, global head, Special Effects. “The new High IQ labels will give clear consumer benefit
statements, thus enhancing convenience and confidence in garment selection and purchase.”

The Textile Effects Segment will continue to help textile mills manufacture fabric to High
IQ specifications, and will provide brand owners and retailers with point-of-sales
materials.


May 9, 2006

Suessen Delivers 1.5 Millionth EliTe® Compact Spindle

Germany-based Spindelfabrik Suessen
GmbH has sold the 1.5 millionth EliTe®Compact Spindle to India-based Super Spinning Mills Ltd.
(SSML), which counts 50,000 such spindles and 12,000 EliTwist®Compact Spindles among its total
capacity of more than 150,000 ring spindles. The landmark spindle will be installed on a Lakshmi
G5/1 ring-spinning frame.

SSML, part of the Sara Elgi Group, operates four divisions: Agriculture, Spinning, Weaving
and Garments. The three units comprising the Spinning Division produce carded and combed cotton
weaving and knitting yarns ranging from Ne 6 to Ne 140 using a range of spinning processes
including compact single, core spun, EliTwist and fancy. The company also spins organic cotton on
Suessen’s EliTeCompactSet system.

Suessen has sold 500,000 EliTeCompact Spindles since late 2005. The company introduced the
spindles at ITMA ’99 in Paris.


May 9, 2006

CAFTA-DR Implementation Bogging Down

Central America-Dominican Republic
Free Trade Agreement (CAFTA-DR) has run into serious problems, and new legislation may be needed in
order to fix them. Although the pact was approved by the US Congress last year, it cannot be fully
implemented until the governments of other participating countries ratify it, and therein lies a
problem that is causing considerable concern to textile and apparel manufacturers and importers.

Thus far El Salvador, Honduras and Nicaragua have ratified the agreement, but the Dominican
Republic, Guatemala and Costa Rica have not. The Dominican Republic and Guatemala have problems
with agriculture and intellectual property protection requirements, as well as textile and apparel
issues, but it is hoped those issues can be resolved by mid-summer. Costa Rica has the most
problems, so it is likely to be some time before it will come on board.

Among other things, CAFTA-DR provides duty- and quota-free treatment to textile and apparel
products, provided the inputs are made in participating countries. Where the problem has arisen is
if an apparel maker in, say, El Salvador, which has ratified the agreement, wants to use thread,
yarn or fabric from Costa Rica, which has not ratified the agreement, the apparel products would
have to pay the full applicable US import tariff. That situation has caused many US apparel
importers to shy away from CAFTA-DR because if they have to pay duty on Central American imports,
it is cheaper in the long run for them to source their products at lower prices in China and pay
the duty.

Officials at the Washington-based National Council of Textile Organizations say it may be
necessary to get legislation approved by Congress that would provide some sort of a duty rebate
once Central American countries qualify and would permanently fix the coproduction problem. They
are looking for a way to attach amendments to another piece of legislation that could clear
Congress relatively soon.


May 9, 2006

Oxford To Sell Womenswear Group

Atlanta-based apparel producer and
marketer Oxford Industries Inc. has agreed to sell its Womenswear Group to a division of Hong
Kong-based Li & Fung Group for approximately $37 million cash upon closing plus additional cash
proceeds of approximately $30 million from retained accounts receivable and in-transit inventories,
for total after-tax cash proceeds of approximately $67 million. Closing is anticipated on or about
June 2, 2006.

“Our Womenswear Group has made a significant contribution to our success over the years, and
the decision to pursue its sale has been very difficult,” said J. Hicks Lanier, chairman and CEO,
Oxford. “However, we believe this divestiture is an important step in the ongoing strategic
repositioning of our company. This transaction will result in a significant improvement in our
balance sheet and enable us to continue to invest in the growth of our key consumer lifestyle
brands as well as to pursue the acquisition of similar businesses.”


May 9, 2006

Johnson Controls Expands Lectra Use In Europe

Johnson Controls in Europe has
invested in computer-aided design/computer-aided manufacturing technologies worth 5 million euros
from Paris-based Lectra. The Milwaukee-based automotive interior maker has chosen Lectra’s
VectorAuto MP9 mass production multiply cutter as well as a training, consulting and services
package as part of its contract with the provider of software and equipment for textiles, leather
and other soft materials.

The automated VectorAuto MP9 can cut automotive materials up to 9 centimeters in thickness
according to geometrically complex patterns and using state-of-the-art software, Lectra reports.
The machine uses a digitally controlled variable vacuum system to cut materials precisely,
including those that are foam-laminated. Machine features include a rapid-change dual drill, the
ability to cut a variety of standard data formats, a bar code input system and an automatic
bristle-cleaning system.

Johnson Controls asked Lectra to develop a machine suitable for its high productivity and
performance demands, and, in 2004, bought four of the resulting VectorAuto MP9s for its Romanian
and Portuguese plants. The company recently decided to expand automated cutting in its facilities
in emerging automotive markets.


May 2, 2006

Fi-Tech Assumes Heberlein’s US, Canadian Sales, Marketing

Fi-Tech Inc., Richmond, Va., has assumed full responsibility for sales and marketing in the
United States and Canada for all products manufactured by Switzerland-based Heberlein Fiber
Technology Inc.

Prior to taking on the entire product line, Fi-Tech handled sales and marketing for
Heberlein’s AirSplicer™ and threading devices including Lufan®, and spinnerets from Heberlein’s
Germany-based sister company Enka tecnica GmbH.

The added responsibility results from the closing of Heberlein North America Inc.,
Greenville, following the retirement of Adrian Steinmann, president and owner of the North American
subsidiary.

According to Fi-Tech, Steinmann continues to be actively involved during the changeover to
help ensure a smooth transition for Heberlein North America’s

customers.

May/June 2006

Dixie Group Implements Datatex ERP Suite

The Dixie Group, Dalton, Ga., has selected an enterprise resource planning (ERP) solution from
Datatex TIS Inc., Alpharetta, Ga., to use throughout its facilities and divisions in the areas of
costing, manufacturing, sales and marketing analysis, and customer service.

The Datatex ERP package — designed specifically for the floor covering industry — divides
operations into several functional management areas including planning and scheduling,
manufacturing, costing, sales and business analysis. The product meets universal J2EE standards for
Web-based architecture; works with a wide range of operating systems such as HP-UX, AIX, Linux, MS
Windows, Solaris, i5/OS and OS/400; and offers flexibility for companies of all sizes, according to
Datatex.

The Dixie Group needed an integrated software suite that would address its needs, resulting
from expanding its product offerings, according to Jon Faulkner, vice president, planning and
development.

May/June 2006

GS Industries Of Bassett Acquires Textube

Bassett, Va.-based GS Industries of Bassett Inc. has acquired all aspects of Greer, S.C.-based
Creform Corp.’s Textube/Textile Division. Creform sold the division because of growth in its core
material-handling systems and components design and manufacturing business, GS Industries of
Bassett reported.

The company has added Textube’s 29 injection-molding presses, which range in size from 150
tons to 300 tons, to its stock of the same type of presses, which range from 150 tons to 1,500 tons
in size. It also acquired Textube’s secondary equipment, all molds, the Textube name and a complete
list of customers.

“All business aspects will be transferred to GS ownership in coordinated stages so as to
avoid disruption to both production and delivery schedules,” said Frank J. Glinski, CEO of GS
Industries of Bassett and president of GS Industries Management Inc.

May/June 2006

Fleissner Announces Sales

Germany-based Fleissner GmbH recently
has sold several AquaJet spunlace systems. A US firm will use a 3.6-meter, 12,000 metric
tons-per-year (mtpy)-capacity spunlace line in the production of carded wipes, with expected
start-up by the end of 2006. A company in Europe has ordered a 4,500-millimeter (mm)-working-width
heavy-duty line and a high-capacity Fleissner TAD through-air drum dryer for use in the manufacture
of a new-generation spunlace web. In the Middle East, a 5,000-mtpy-capacity line will be installed
for use in wipes and medical/sanitary applications. A LeanJet system with a working width of 2,500
mm and capacity of 5,000 mtpy will be shipped to China-based New Tsongtsien for use in production
of plain and apertured webs for hospital, hygienic and wipes applications.


May/June 2006

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