Yesterday, a very special and unique event happened in Schwäbisch Hall, Germany. Wilhelm Christ,
the inventor of the Airflow® technology, and for many years research director at Germany-based Then
Maschinen GmbH, received a medal from the State of Baden-Wurttemberg for his merits regarding
economy and technology for the state.

The engineer started his new invention in the late 1970s when the dyeing of a kilogram (kg)
of fabric required about 150 liters of water. This challenged Christ, head of the Then research
department, to question how the enormous water and energy demand in fabric dyeing could be lowered.
In those days, the traditional machinery used water to carry dyes and also to drive the fabric,
which resulted in the very high water consumption.

In 1979, Christ began to develop the Airflow technology with Germany-based Hoechst AG. The
idea was to replace the fabric transport medium, using steam instead of water, whereby the
steam-heated dye liquor was injected into an air-jet nozzle. The next challenge was to efficiently
distribute the small amounts of dye liquor and auxiliaries onto the fabric.

After this revolutionary idea was realized on a piece of paper, things accelerated rapidly.
In 1981, the basic Airflow patent was registered to Christ, Dr. Hans Ulrich von der Eltz and Albert
Reuther. The European patent followed in 1982. At the same time, the application of the process
started in many countries worldwide.

One year later in Milan, the first Airflow machine was shown at ITMA ‘83. This machine
received skeptical reactions from the so-called world experts. However, the first 10-kg load-size
prototype machine was installed at Hoechst’s application laboratory. Subsequently, Then introduced
the Airflow technology commercially and started its successful journey.

A great honor was awarded to Christ on Sept. 16, 1996, when he received the Henry E. Millson
Award for Invention from Frederick K. Jones, president of the American Association of Textile
Chemists & Colorists.

The rest is history. In today’s world of environmental consciousness, the Airflow technology
is more than a technical advantage. It saves a lot of water, energy and dyestuff — and last, but
not least, labor costs.

Ernst Pfister, minister of Economic Affairs of the State of Baden-Wurttemberg, recognized in
his laudation the achievements of a person, who, at the age of 83, is still full of energy and
ideas. And still today, Christ is working as a research associate at Then.

Bill Fong, executive director of Then’s parent company, Fong’s Group, and managing director
of Then, said in his speech that today, to maintain a leading position, one must provide innovative
products and solutions to its customers. And, as a matter of fact, all companies are faced with a
great demand from their customers for more environmentally friendly solutions for the industry.

So, that’s why today, it is not just about being a so-called “socially or environmentally
conscious company, but because of the ever-rising costs of various natural resources and
commodities from energy to base metals and water, being an environmentally conscious company also
means being a profitable company.

And, with a smile to Christ, Fong said: “Your invention of the Airflow technology was clearly
before its time, as it is only now, more than two decades later, that the textile industry
worldwide truly appreciates the benefits brought by the Airflow technology in terms of the
important savings in energy, water and chemical consumption. This is to your own, personal merit.”

February 26, 2008

Four major textile trade associations have formed a new coalition to address ways to improve
federal government procurement of textiles and textile end products such as uniforms, protective
clothing, shelters and a wide variety of other items. The coalition, known as the Textile Industry
Coalition on Government Procurement, organized by the National Textile Association (NTA), includes
NTA, National Council of Textile Organizations, the American Manufacturing Trade Action Coalition
and the Industrial Fabrics Association International.

The goal of the group is to improve government procurement practices and policies with the
Department of Defense (DOD), initially, and to address the increasing needs for homeland security.
Also high on its priority list is preserving the integrity of the so-called Berry Amendment that
mandates the purchase of only US-made textiles and end items for our military forces. The coalition
also will be supporting legislation to extend the requirements of the Berry Amendment to Department
of Homeland Security procurement.

 “As the needs of our military continue at a high rate, we think it is essential for US
textile manufacturers to work with the Defense Logistics Agency and the military services to
improve the procurement process for the point of view of the customer and supplier,” said NTA’s
Government Textiles Committee Chairman Bruce LaFlam, Milliken and Company. “Our goals address both
of these issues.”

Some textile manufacturers have been meeting for a considerable length of time with DOD
procurement officials to work out kinks in the system in an effort to ensure that domestic
manufacturers of textiles and end items can continue to meet the increasing and changing needs of
the armed forces. Although some progress has been made in that regard, US textile companies believe
more needs to be done.

They see a need for better forecasting to address government and industry planning issues,
and the need to reduce the risks of order fluctuations that tend to result in too much or too
little capacity being devoted to government needs. They want to improve communications and educate
government procurement officials about the unique complexities of the fiber/textile/end item supply
chain.

February 26, 2008

Fort Mill, S.C.-based polyester fiber and packaging resins manufacturer Wellman Inc. has filed
voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code for the Southern
District of New York.

“Although the company has taken numerous steps to reduce its debt and strengthen its balance
sheet through the disposition of certain businesses, headcount reductions and other cost
reductions, these actions were not sufficient to offset the deterioration in business conditions
and the cost of our substantial debt obligations,” said Thomas Duff, chairman and CEO, Wellman. “
Filing for Chapter 11 allows us to continue operating our business without interruption while
continuing to pursue our previously announced strategic alternative process.”

Difficulties encountered by the company include competitive challenges in the commodities
market in which it is primarily involved, including very tight margins resulting from raw material
supply and pricing, capacity utilization, customer demand and competition; and damage and
disruption of operations at its facility in Bay St. Louis, Miss., caused by Hurricane Katrina in
August 2005. Wellman’s recent efforts to streamline operations and refinance debt, and the sale
last summer of its European business have not been sufficient to reverse the company’s fortunes.

Wellman announced in late October 2007 that it had engaged New York City-based investment
bank Lazard Frères & Co. LLC to assist it in exploring strategic alternatives (See “Wellman’s
Board Explores Strategic Alternatives,” www.TextileWorld.com, Nov. 6, 2007). These strategic
alternatives include the potential sale of the company.

The company has received a commitment for debtor-in-possession financing of up to $225
million from its existing revolving credit facility lenders. This financing will be added to cash
from operations to cover operating expenses, including employee and supplier expenses, during the
reorganization period.

“I would like to thank our customers and vendors for their continued support during this
process,” Duff said. “We also appreciate the ongoing loyalty and support of our employees, whose
dedication and hard work are critical to our success and to the future of the company. Our
management team is committed to making this reorganization successful and leading Wellman toward a
bright future.”



February 26, 2008

Citing declining year-over-year production volume, Germany-based Freudenberg Nonwovens has
announced it will shut down two production lines in its Hopkinsville, Ky., facility effective March
15 and move business served by the two lines to its Durham, N.C., facility. Both lines — one for
the production of staple fiber/binderbond nonwovens and one for adhesive webs — serve the
automotive industry.


“We have been working with the affected customers developing supply alternatives,” said
Stephan Liozu, vice president and general manager, Spunlaid Division North America. “We stand
committed to servicing our customer base in the North American automotive market and to bringing
new nonwovens technologies and solutions to our customers.”

Freudenberg Vitech LP, which also serves the automotive industry, and the company’s
Filtration Division will continue to operate in Hopkinsville. The Durham site’s spunlaid and staple
fiber operations will continue to serve the automotive industry as well as building product,
industrial and interlining markets in North America.

February 26, 2008

Tokyo-based based Kuraray Co. Ltd., manufacturer of Vectran® multifilament yarn spun from liquid
crystal polymer, is increasing Vectran fiber production by 40 percent to 1,000 tons per year. The
company announced it has completed an expansion project at its manufacturing plant in Saijo, Japan,
and will bring additional capacity online at its Fort Mill, S.C. manufacturing facility in May.


According to the company, Vectran fiber is suitable for performance and safety applications
where strength, durability and dimensional stability are important. Kuraray supplies the fiber to a
wide variety of manufacturing segments including aerospace, military, industrial, rope and cable,
and composites for such end-uses as NASA space systems, inflatable wind-turbine generators and
helicopter slings.

“We manufacture a very unique fiber whose combination of properties meets demanding
performance requirements where other fibers fail,” said Dr. Elizabeth G. Stoner, general manager,
Vectran Division. “We see many opportunities to expand the use of Vectran fiber. We are growing
rapidly and this capacity expansion is enabling us to better service our customers globally.”

February 26, 2008

Switzerland-based Rieter Holdings AG has sold its Germany-based Rieter Automatik GmbH pelletizing
machinery business unit to Switzerland-based CGS Management, a specialist in developing
medium-sized businesses into international industrial groups, for an undisclosed price. According
to Rieter, the business no longer is a core activity for the company’s Textile Systems Division,
which henceforth will focus on staple fiber and nonwovens production machinery, technology
components and service.

Rieter Automatik — a manufacturer of pelletizing systems and components including systems for the
production and recycling of plastics, or pelletization of low-viscosity liquids — employs 230
workers at its Grossostheim, Germany, facility and reported sales totaling approximately 70 million
Swiss francs (US$61.8 million) in 2007.

February 26, 2008

Avago Technologies, a San José, Calif.-based provider of analog interface components for consumer,
industrial and communications applications, has introduced the AEDS-9240 series of six-channel
optical encoder modules — extended-operating-temperature incremental encoders suitable for use in
applications that require resolutions from 360 to cycles per revolution. Such applications may
include textile machinery, industrial printers, industrial and factory automation equipment, tape
drives, plotters and other servo-motor applications that use brushless DC motors.


According to the company, the new modules provide advanced motion control detection with
integrated commutation outputs equivalent to those delivered by Hall switches, enabling reduction
of production costs, and enhancement of efficiencies and reliability. The module also is designed
with two-channel quadrature outputs and a third-channel ungated index output. Each module comprises
a lensed light-emitting diode source and a detector integrated circuit contained in a small plastic
package. The company says the module’s highly collimated light source and photo detector array
assure its function even when its mounting is misaligned.

February 26, 2008

April 15-18, Geneva, Switzerland, will be the center of the global nonwovens industry. The city
will host INDEX 08, the world’s largest and most important exhibition for the nonwovens industry.
The exhibition will be held at the Geneva Palexpo, near the airport. The number of companies
presenting new products will exceed 500 for the first time in the history of INDEX.

Latest Developments To Be Seen

 

Covering 50,000 square meters, including more than 20,000 square meters of booth space, INDEX
08 will present the latest nonwoven application and technology developments. It will bring together
leaders in all sectors of manufacturing, machinery and raw materials with leading industry
decision-makers, purchasing and sales professionals and key marketers.

“Index is the flagship event for the nonwovens industry, and the number of exhibitors and
visitors expected this year is further testimony to that,” said Pierre Wiertz, general manager of
EDANA, the international association representing the nonwovens and related industries, and sponsor
of INDEX 08.

INDEX was first held in Geneva in 1984 and takes place every three years. This year, more
than 13,000 visitors are expected to see the offerings of leading nonwovens experts in eight key
sectors: packaging, filtration, composites, automotive, construction, medical, cleaning and hygiene
and home furnishing.

Extensive Program

INDEX 08 will feature the 2008 “Global Nonwovens Summit,” a forum for senior executives
within the nonwovens and related industries looking to develop and foster good working
relationships. The focus of the 2008 summit will be on raw materials, energy and ideas for
non-commercial collaborative efforts.

At a special ceremony during the exhibition, EDANA will present the INDEX 08 Awards for
innovations in the nonwovens field. The aim of the awards is to encourage and acknowledge
innovation and new ideas in nonwovens, raw materials and machinery.

The Innovation Pavilion will present projects research consortiums supported within the sixth
Framework Program for Research and Technology development.

Under the theme of “Solutions for Tomorrow,” exhibitors will present some of the latest
developments in the field of nonwovens. Provided free-of-charge to visitors, the presentations will
take place in a specially-constructed auditorium within the exhibition halls. In addition, three
general sessions, there will be three sessions focusing on nonwovens in filtration and automotive
applications, as well as nanotechnology.

Nonwovens In Action is designed to show the functional capabilities of nonwovens in apparel
applications. INDEX organizers Orgexpo; EDANA; and the School of Design and Nonwovens Research
Group at the University of Leeds, England, are collaborating to present this project.

More information about the show can be found at
www.index08.org.

February 19, 2008

As the US government announced the textile and apparel trade deficit with China reached a new
record high of $31.8 billion in 2007, textile industry lobbyists and their friends in Congress
launched a renewed effort to enact legislation designed to help offset China’s trade advantage
stemming from its undervalued currency. At a news conference on Capitol Hill, members of Congress
and representatives of some 25 trade associations, the American Federation of Labor and Congress of
Industrial Organizations, and the China Currency Coalition sounded an alarm and called for passage
of legislation sponsored by Reps. Duncan Hunter, R-Calif., and Tim Ryan, D-Ohio, that would
discourage currency manipulation by China and other countries that undervalue their currencies. The
legislation would permit injured parties to seek remedies under US countervailing duty laws.

Claiming that the trade data are “further evidence that this problem is getting worse, not
better,” Ryan said: “Our economy is at risk of recessing, we continue to lose manufacturing jobs
and need to have the courage to do something about it.” He said the coalition backing his
legislation is the broadest he has seen, as it includes Democrats and Republicans, manufacturers
and labor, and representatives from throughout the nation. “They have come together to support
common sense legislation which will only ask China to live up to the standards it agreed to when it
joined the World Trade Organization,” he said.

Calling for quick passage of the Hunter-Ryan Currency Reform and Fair Trade Act of 2007, Cass
Johnson, president, National Council of Textile Organizations, said: “When foreign governments play
dirty to gain a competitive advantage, our government should respond, and at the very least,
provide US companies with adequate tools to defend themselves.” He said action on the currency
issue is particularly important in view of the fact that all import quotas on Chinese textiles and
apparel are due to be removed at the end of this year.

Auggie Tantillo, executive director, American Manufacturing Trade Action Coalition, said
failure of the House of Representatives to pass meaningful anti-currency-manipulation legislation
in 2007 was “deeply disappointing” to US manufacturers and pointed out relief is needed “now more
than ever before.” Tantillo predicts if the House were to hold a vote on the Hunter-Ryan bill
tomorrow, the bill would pass overwhelmingly.

As the trade data were announced, the chairmen of the House Ways and Means Committee and its
Trade Subcommittee issued a press release that was highly critical of what they said are the “
misguided trade policies of the Bush administration,” stating, “Too often our trading partners are
allowed to break international rules to keep US exports out of their markets and engage in unfair
trade practices.” They charged that currency manipulation by China and other countries to gain a
competitive advantage is “a flagrant and long-standing breach of international rules.” Those
comments by the key members of Congress who deal with trade matters have taken on new significance
in view of the soaring trade deficit and the continuing loss of manufacturing jobs.

February 19, 2008