Hemptown Teams With Alberta Research Council Apparel Brands

Vancouver-based Hemptown Clothing Inc. has contracted the Alberta Research Council (ARC) to help
commercialize its Crailar textile fiber technology, which was developed jointly with the National
Research Council of Canada. Additionally, the company is supplying alternative textiles to apparel
brands Serum Versus Venom (SVSV), New York City, and Triple Five Soul, Los Angeles, for their
newest fashion lines.

ARC will conduct pilot tests on samples of the enzyme process that changes industrial hemp
into soft, white fiber, called Crailar, as part of the effort to develop large-scale commercial
textile applications in apparel, home wares, flooring and other uses. The enzyme will be applied to
full pilot plant samples to make 100-kilogram bundles of refined hemp fiber.

The process and end product is considered eco-friendly as hemp may be grown organically and
without the fresh water irrigation required by cotton, according to Hemptown.

“This is a key time in the development of Crailar. We look forward to seeing the results of
ARC’s tests and appreciate their help in assessing Crailar as a viable biotech tool in the
processing of hemp,” said Jerry Kroll, CEO, Hemptown.

In other company news, SVSV and Triple Five Soul will use Hemptown’s bamboo and soy fabrics
in their street-inspired apparel.

“Our partnership with SVSV will promote alternative organic fabric to a mainstream customer,”
said Jason Finnis, president, Hemptown. “[T]his alternative fabric line will go a long way to
promote organic textiles as a fashion item.”

January 1, 2006

Spinners Expect Upswing In First Half


L
 oking back at 2005, mill managers agree business was surprisingly strong in the first
half of the year, and July was the turning point — one that led to a more lackluster second half. A
sluggish third quarter was followed by a better — at least by comparison — fourth quarter.

“Business was miraculously good at the start of the year,” commented one industry observer. “
It was incredible how good it was, particularly given the Jan. 1, 2005, quota phaseout. The biggest
reason the yarn business started out so strong was … the economy was just booming.”

One specialty spinner described his business as very sporadic since September, with brief
periods of decent order bookings and very active delivery quotations that “increasingly failed to
materialize into orders.”

Spinners have a positive short- to mid-term outlook for 2006. “I expect the first half of ’0
6 to be similar to the first half of ’05,” said a specialty ring spinner. “Our export business
continues to grow. It appears … US retailers will continue to support Central American vendors, and
that certainly works to our advantage.”

Mill executives’ long-term outlooks are tempered by uncertain business conditions and
increasing imports. One spinner mentioned a customer that temporarily ceased operations and noted
some weavers are exiting the bottomweight business. Another spinner reported closing at least one
spinning plant as an adjustment to decreased demand. Military business also seems to have dipped a
bit lately.

One multisystem spinner saw little chance of growth in 2005 and expects further consolidation
within the US spinning fraternity in 2006.

“We will continue to see pressures on the pricing side, and I hope … cotton prices continue
to be low or at least consistent,” he said. “I think it would be wrong to anticipate growth. I don’t
think we are finished with consolidation. As our customers move down to Central America and shut
down US operations, you’re going to see some spinners moving down there as well.”


Running Conditions Normal But Seasonal


At the time of this writing, spinners were in typical holiday slowdown mode. One reported
running his operations five to six days a week, but said he couldn’t build much of a backlog.
Another spinner used the term “mixed bag,” noting most of his plants are running well and a
specialty plant is on a reduced schedule. All of the spinners polled mentioned the traditional
one-week holiday shutdown of most plants. Business outlooks remain week-to-week for spinners, or “
from now to next Wednesday.”


Looking For Fiber Prices To Decrease


Spinners see some signs man-made fiber prices may get better in 2006. One noted chem-ical
data indexes remain unchanged, which should indicate polyester prices will stay the same or maybe
go down.

“I think fiber producers will keep prices higher than they started off last year, but … most
of the surcharges will be rolled off by the first of the year,” said a multisystem spinner. “They
want to try to get fiber prices back into a competitive state so they can sell more fiber
internationally.”


Staying Competitive


Yarn prices continue to remain competitive and under pressure.

“Typically, the stability of specialty yarn pricing is important for program business,”
observed one specialty ring spinner. “Increasingly, business consists of smaller orders for
near-term delivery, which requires us along with our customer/partner to become competitive with
imported fabric.”

“The opportunities for our customer — the apparel manufacturer — [are] dependent on response
to market,” he continued. “Competitive speed is the catalyst for near-term business, and we, as a
raw material supplier, are an important component to this business development. Everything must be
done with more efficiency.”

Spinners looking for a New Year’s resolution might heed the advice of one industry observer,
who suggests looking for new products, new markets and, most importantly, a new business model.

January/February 2006

Made In America Amendment Helps US Manufacturers

US textile manufacturers believe a
tightening of the Made in America requirements for Department of Defense procurement will create
new markets for them. The recently enacted Berry Amendment to the Defense Department authorization
bill will require defense agencies to notify Congress and issue a public notice if they intend to
obtain clothing or other items from foreign suppliers. Since the previous Berry amendment was
non-binding policy, government procurement officials have been looking more and more to overseas
suppliers. Under the new law, the Secretary of Defense now must notify Congress within seven days
if it awards a contract to a foreign manufacturer. The secretary also must post a public notice on
the Internet, which will give domestic manufacturers an opportunity to show they can provide the
products.

The new language also expands the types of textile products that will be covered under the
act. Karl Spilhaus, president of the National Textile Association, many of whose members supply the
military and would like to do more business, said the transparency required under the new amendment
will enable companies to monitor Defense Department contracts more closely and afford domestic
manufacturers with opportunities to supply goods for the armed forces. It is estimated that the
Defense Supply Center in Philadelphia purchased some $2.5 billion in clothing and textile products
in fiscal year 2005. 

January 2006

AAFA Forms Brand Protection Council

The American Apparel & Footwear
Association (AAFA), Arlington, Va., has started a Brand Protection Council to help protect US
brands from counterfeit products — which cost US companies about $250 billion each year, according
to estimates from the US Chamber of Commerce. The council is composed of legal, brand enforcement
and marketing representatives of US companies.

“America’s branded apparel and footwear industry is under siege by fake products
masquerading as authentic and valuable brands,” said Kevin M. Burke, president and CEO, AAFA. “Our
member companies do not intend to stand by while the integrity of their products is destroyed.”<
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January/February 2006

Cone Denim Jiaxing Selects Sultex Projectile Looms

Cone Denim Jiaxing Ltd. — a
China-based joint venture of the Greensboro, N.C.-based International Textile Group and Hong
Kong-based Novel Holding Ltd. — has purchased 140 Sulzer Textil P7300HP projectile weaving machines
from Switzerland-based Sultex Ltd. The denim manufacturer, which will use the new machines in its
new plant in Jiaxing, Zhejiang, expects the installation will be complete in the second half of
2006.

K.C. Chao, CEO, Cone Denim Jiaxing, said the decision to purchase the Sulzer Textil machines
was based on Cone Denim’s satisfactory experience using Sulzer Textil machinery at other
manufacturing plants and with the quality of the fabrics produced. “In addition,” he said, “we have
worked with Sultex as a manufacturer and supplier of weaving machines for a long time, and we
appreciate Sultex’s technical service capabilities and textile competencies.”


January 1, 2006

Milliken & Company Names Allen CEO

G. Ashley Allen, Ph.D., president and
chief operating officer, Milliken & Company, has been named CEO of the Spartanburg-based
business. Allen succeeds CEO Roger Milliken, who continues as chairman of the board.

“In an era when so many companies go outside to pick a new CEO, it gives Milliken’s
directors and me strong confidence that our long-term policy of careful recruiting, continuing
education in Milliken University and cross promotion is working,” Milliken said.


Allen began his career as a research chemist at Milliken Research Corp. in 1969. Subsequently, he
served in various managerial positions, including president of the Chemical & Packaging
Division, Chemical & Industrial Specialties Division and Milliken Research Corp., prior to his
most recent position.

Allen earned a bachelor’s degree in chemistry from Washington & Lee University,
Lexington, Va.; and a doctorate in organic chemistry from Cornell University, Ithaca, N.Y., where
he also was a postdoctoral fellow. He is a member of the American Chemical Society, Management
Executives’ Society, Executive Committee of the Society of Chemical Industry, Spartanburg Regional
Healthcare Foundation Board of Trustees, South Carolina Council on Competitiveness, Charles Lea
Foundation Board of Directors and Episcopal Church of the Advent.

Joe Salley, Ph.D., division president, worldwide Performance Fabrics, succeeds Allen as
chief operating officer.

January/February 2006

Propex Fabrics Announces Acquisition

Propex Fabrics Inc. (“Propex”), SI
Concrete Systems Corporation and SI Geosolutions Corporation (“SI”) announced today that a
definitive agreement has been entered into whereby Propex will purchase SI.

Ed Stanczak will remain CEO and President of the combined entity. Headquarters will be
relocated to northern Atlanta, where growing the companies’ international presence will be a
priority. According to Mr. Stanczak, “It is our intention to create a highly diversified and
balanced company which will become the best of the best. The intended combination is a classic
example of two good companies combining to become one great company. This will be great for
customers, employees, shareholders, and suppliers.”

Joe Dana, current CEO of SI, will become the President of North American Operations with its
headquarters located in Chattanooga, TN. Mr. Dana commented, “The combination will create
opportunities to leverage the capabilities of each organization to optimize operations and generate
profitable growth. We will continue to be market driven and innovation focused with special
emphasis on maintaining exceptional service to all customers.”

The combined entity will be one of the world’s leading producers of polypropylene-based
fabrics for primary and secondary carpet backing, geosynthetic applications and a variety of other
industrial end uses. The acquisition is expected to close by the end of January 2006.

Propex was acquired in December 2004 by a group of investors led by Houston-based The
Sterling Group, L.P., San Francisco-based Genstar Capital, L.P. and Houston-based Laminar Direct
Capital, L.P.

Propex is the world’s largest producer of primary and secondary carpet backing, and a
leading manufacturer and marketer of polypropylene synthetic fabrics used in a variety of other
industrial applications.

SI is a market leader in providing innovative, high-performance products that provide
support, strength, and stabilization solutions for its customers in the Furnishings and
Construction Materials markets.

Press Release Courtesy of PR Newswire

January 2006

Milliken Ranked As One Of The Top Employers In US

Spartanburg-based Milliken & Company ranks as the 38th best company in FORTUNE Magazine’s
annual “100 Best Companies to Work” For listing. The list and related stories appears in the
January 23 issue of FORTUNE, available on newsstands January 16 and at www.fortune.com on January
9. Milliken is the only South Carolina-based company to make the list. Additionally, Milliken ranks
15th among mid-sized companies.

“It is no secret that the best
companies are made up of the best people – and we are certainly blessed in that regard,” stated Dr.
Ashley Allen, president and CEO of Milliken. “Milliken associates have worked together to build a
great place to work, and I am glad we can all be recognized as the thirty-eighth best company in
America,” continued Allen.

Despite the benefits that companies on the list offer employees, globalization has made it
harder for even the best of them to treat employees well. “The good news is that some companies are
doing it anyway,” says FORTUNE senior editor-at-large Geoffrey Colvin in his introduction to the
list. “Extraordinary by definition, America’s 100 Best Companies to Work For have pushed their
employee-pleasing ways further than ever in the past year, blazing a trail for all organizations
wanting to thrive in today’s economic world.”

Regarding Milliken, the FORTUNE web site answers the profile question of, “What makes it so
great?”, with the following: Employees have great affection for CEO Roger Milliken, whose family
founded this textile company in 1865. “Thankfully, someone in this country cares about the American
worker and what he stands for,” said one employee.

Milliken has long been a fierce advocate for preserving American jobs. The Company has faced
tough Asian competition in recent years as part of the embattled textile industry.

Milliken also evokes pride in other ways. “It is easy to take pride in a company that
promotes environmental stewardship and safety to the degree that Milliken does,” stated Richard
Dillard, director of public affairs. The Company landfills less than 1% of its waste — a result of
stringent recycling efforts, and touts an accident incident rate of only .55 compared to the
textile industry average of 4.0 and to 6.6 for all U.S. industries. (Source: US Bureau of Labor
Statistics).

“The 100 Best Companies to Work For” list is compiled for FORTUNE by Robert Levering and
Milton Moskowitz of the Great Place to Work Institute in San Francisco, based on two criteria: an
evaluation of the policies and culture of each company, and the opinions of the company’s
employees. The latter is given more weight; two-thirds of the total score comes from employee
responses to a 57-question survey which goes to a minimum of 400 randomly selected employees from
each company. More than 100,000 employees from 466 companies participated in the survey this year,
up from 356 candidate companies last year. It asks about things such as attitudes towards
management, job satisfaction, and camaraderie within the organization. The remaining one-third of
the score is based on an evaluation of each company’s demographic makeup, pay and benefits
programs, and culture. Companies are scored in four areas: credibility (communication to
employees), respect (opportunities and benefits), fairness (compensation, diversity), and
pride/camaraderie (philanthropy, celebrations). Companies that are at least seven years old and
have 1,000 or more employees are eligible for the list.

Milliken has attributed much of its success to a quality process, with associate involvement
at all levels, combined with its continuous education process.

Press Release Courtesy of Milliken & Company




January 2006

IFAI Expo Expands Scope


A
 lthough overall participation at the Industrial Fabrics Association International (IFAI)
Expo 2005 was a bit lower than in 2004, exhibitors reportedly were “extremely happy” with the
results.

“We couldn’t figure out at first why there was such a positive feeling on the show floor
knowing that our attendance was about the same as in Pittsburgh [the site of IFAI Expo 2004], but
our post-show exhibitor survey reported that exhibitors were happy for two reasons,” said Stephen
M. Warner, IFAI’s preson 150th Anniversary touring venueident and CEO.   

“First, there were a lot of new faces. Forty-four percent of those attending were not there
last year; 17 percent were from outside the United States. That’s a record for us.

“Second,” he continued, &ldquo;the visitors represented larger companies, and more were in the
emerging markets like medical, safety, structures and military applications.”

Of the 437 exhibitors — up from 413 in 2004 — 83 participated for the first time at IFAI Expo
2005, held late last year in San Antonio. The number of attendees totaled 6,259, coming from a
record 51 countries to see what exhibitors had to offer and learn about new developments in the
specialty fabrics sector.

First-time attendees Gene and Maggie Huser of Kemah, Texas-based Bristol Fashion found the
expo to be quite worthwhile.“We made many contacts and were awestruck by the technology out there,”
they said. “IFAI Expo 2005 helped us, as small business owners, become more knowledgeable for our
customers.”

In addition to the commercial exhibits, the expo included two pre-conference symposia —
Fabric Structures 2005 and Textiles & Graphics — that attracted participants from new market
segments. Fabric Structures 2005 attracted more than 200 architects, designers, structure
fabricators and installers. Textiles & Graphics reached out to those involved with digital
graphics.

Activities also included educational programs under 12 tracks: Automotive; Filtration;
Geosynthetics for Landscape Architecture; Medical Textiles; Safety & Protective; Sports &
Recreation; Awning & Canopy; Banner & Flag; Inflatable & Tent; Marine; Upholstery; and
Business & Leadership. The programs presented new technologies and ideas such as innovations
brought about by the needs related to emerging markets. More than 100 speakers — including keynote
speaker Doug Lipp, former head trainer at Walt Disney University — shared their insights and
knowledge with expo attendees.

VuiTentNEW
Fabric Shelter Systems Ltd., New Zealand, won an IFAI 2005 International Achievement Award
of Excellence for the tent it designed for the Louis Vuitton 150th Anniversary touring
venue.


Advanced Fabrics

Exhibition Shows Creative Extremes


Of special interest at IFAI Expo 2005, the Advanced Fabrics Exhibition promoted creativity
and innovation in the use of specialty fabrics.

On view were apparel, furniture, bowls and vases, bags, architectural systems, habitat, and
other objects and prototypes inspired by various specialty fabrics. Examples included: a
daylight-blocking, light-emitting curtain lamp submitted by Linda Worbin, Sweden; a strong,
lightweight resin-coated chair made of knotted carbon-fiber/aramid hybrid yarn submitted by Marcel
Wanders, Amsterdam; sports bags made with 3-D spacer fabrics submitted by Hybrids + Fusion, The
Netherlands; and coral-like bowls made by dipping cotton crocheted bowls into porcelain and then
firing them, which causes the cotton to burn away, submitted by Hil Driessen, Amsterdam; among
other articles.

IFAI-seat
Objects shown at the Advanced Fabrics Exhibition included “Fusion” – a seating object
comprising a 3-D, flexible material wrapped around a rubber ring submitted by Sachio Hihara, Japan
– shown in front of a sound-absorbing wool fabric submitted by Margareta Zetterblom,
Sweden.


Looking Ahead


Warner said a post-expo visitor survey indicated 65 percent of those polled planned to make a
purchase from an exhibitor within two weeks of the event’s closing as a result of the contact made
there. The post-expo exhibitor poll indicated 89 percent would return next year.

More than 70 percent already have reserved space for IFAI Expo 2006, scheduled for Oct.
31-Nov. 2, 2006, at the Georgia World Congress Center in Atlanta as part of Megatex 2006 — a
colocation of textile industry events that also will include the American Textile Machinery
Exhibition-International® 2006 and the American Association of Textile Chemists and Colorists
International Conference & Exhibition 2006.


IFAI International

Achievement Awards Of Excellence


IFAI presented 83 2005 International Achievement awards including 30 awards of excellence for
the following specialty fabric projects:

•    Tension Structures, Under 10,000 square feet (ft2): FTL Design
Engineering Studio, New York City, and Taiyo Birdair Corp., Amherst, N.Y., Mesa Arts Center, fabric
trees;

•    Tension Structures, 10,000 to 30,000 ft2: Tenso Estructuras
Arquitectónicas, Mexico, Auditorio Parque Olímpico; and FTL Design Engineering Studio and Taiyo
Birdair Corp., Hampton Roads Convention Center, tensile structure;

•    Tension Structures, More than 30,000 ft2: Covertex GmbH,

Germany, soccer stadium,

AWD-Arena;

•    Air Structures: Covertex GmbH, soccer stadium, Allianz Arena;

•    Awnings, Commercial, Illuminated, Interior and Multi-Family Residential:
Baraboo Tent & Awning Inc., Baraboo, Wis., Adams County Memorial Hospital;

•    Awnings, Single-Family Residential: Sunmaster of Naples Inc., Naples,
Fla., Martin residence;

•    Awnings, Retractable: Rolltec Rolling Systems Ltd., Canada, awnings over
terrace area;

•    Canopies, Commercial, Illuminated and Multi-Family Residential: Sundance
Awning & Fabric Structure, Orlando, Fla., Seasons 52 Restaurant canopy;

•    Canopies, Single-Family Residential: Miami Beach Awning Co. Inc., Miami,
Claramonte-Neves residence;

•    Free-Standing Canopies: Sundance Awning & Fabric Structure,
Nickelodeon Family Suites Hotel;

•    Banners and Flags, Small Scale/ Arts & Crafts: The Design Loft Inc.,
St. Louis, Eastpoint Mall, Butterfly/Dragonfly Court;

•    Banners and Flags, Large Scale/ Special Events: Sundance Awning &
Fabric Structure, Port Canaveral Cruise Terminal;

•    Marine Exterior Fabric Products (Powerboats): Eau-Vent L.M. Inc., Canada,
Bayliner 3880;

•    Marine Upholstery and Interior Fabric Products: Calypso Marine Canvas
(Trinidad) Ltd., Trinidad and Tobago, Quick Like;

•    Marine Exterior Fabric Products (Sailboats): The Boatswain’s Locker Inc.,
Jacksonville, Fla., 466 Harker;

•    Party Tent Rental: Affordable & Luxury Tents, Virginia Beach,

Va., Stacy Smith/Mark Gonsenhauser wedding;

•    Commercial Tent Rental: Roder Zelt-und Veranstaltungsservice GmbH,
Germany, Chio World Equestrian Festival;

•    Tent Manufacturing: Fabric Shelter Systems Ltd., New Zealand, Louis
Vuitton 150th Anniversary touring venue;

•    Architectural Structures, Other: Sun Ports International Inc., Dallas,
Deer Springs Park; and Castro Rojas Ingenieros y Arquitectos Ltda., Colombia, Centro Comercial
Sambil;

•    Graphics: Pink Inc., New York City, circle surrounds;

•    Trade Show/Exhibit Booth: Taiyo Membrane Corp., Australia, Stadia China
exhibit structure;

•    Interior Projects: Studio Lilica, Arcadia, Calif., Nine Wings; and
Architen Landrell Ltd., Wales, Spiky & Cloud pods;

•    Interactive and Cold-Air Inflatables: Canvasland Holdings Ltd., New
Zealand, Pelican;

•    Geosynthetic Projects: Mirafi Construction, Pendergrass, Ga., Trump
National Golf Club;

•    Industrial Applications: Carpas y Lonas el Carrousel S.A. de C.V.,
Mexico, Dolphin Adventure;

•    Safety and Protective or Medical Products: Rainier Industries Ltd.,
Tukwila, Wash., GOX Seals, NASA Space Shuttle; and

•    Miscellaneous: Hightex GmbH, Germany, Melancholia.

January/February 2006

TLV Introduces BE3L Bellows Seal Globe Valve

TLV Corp., Charlotte, reports its
BE3L bellows seal globe valve offers high reliability in steam, heat-transfer fluid and hot-water
applications.

Features include: zero-leak, triple-seal construction by which the bellows, gland packing
and stem seal provide an impermeable barrier between fluid and environment; forged steel
construction and stainless steel bellows tested to last through 10,000 cycles; stellite hardened
surfaces on the valve plug and seat to provide tight, reliable shutoff; low maintenance, with no
need to tighten or replace the gland seal packing; and a versatile, compact design rated to 710
psig and 752°F.


January/February 2006

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