Cleveland-based Lubrizol Advanced Materials Inc. — a subsidiary of The Lubrizol Corp, Wickliffe,
Ohio — has completed the installation of a new production line at its Avon Lake, Ohio,
manufacturing facility increasing capacity for Lubrizol’s Estane® thermoplastic polyurethane (TPU)
products by approximately 30 percent.

“A key part of the global growth strategy for Estane TPU is to ensure that our manufacturing
facility at Avon Lake, as well as our global facilities in Oevel, Belgium, and Songjiang, Shanghai,
have the capacity to supply our customer base well into the future,” said Mike Vaughn, vice
president and general manager, Estane Engineered Polymers.

“Business throughout the Americas is growing. We have already sold material produced on the
new line, and we expect that the added capacity will complement all of the product development
efforts underway,” added Dale Willis, business director – Americas, Estane Engineered Polymers.

February 12, 2008

Effective February 15, the Textile Chemicals business of Fairlawn, Ohio-based Omnova Solutions will
raise the price for glyoxal-based resins by up to 12 percent. The price increase is due to
continuing cost increases related to glyoxal, chemical raw materials, energy and freight.

February 12, 2008

As Congress continues to move forward with legislation to do something about the US/China trade
deficit, a top Department of Commerce trade official has outlined how the Bush administration plans
to deal with Chinese trade issues.

While administration trade officials up to this point have for the most part dealt in
generalities about “engagement” with China, Undersecretary of Commerce for International Trade
Christopher Padilla, in a speech before the Center for Strategic and International Studies in
Washington, D.C., put some meat on the “engagement” bones.

Noting that the United States and China find themselves at a “critical junction,” Padilla
said powerful groups in both nations are questioning the benefits of China’s integration into world
trade circles and are calling for barriers to be erected. “Economic nationalists in the United
States will play on America’s anxiety about the competitive challenge of China and the global
impact of its actions on everything from the safety of our children’s toys to the air that we
breathe,” Padilla said.

He noted that China has been developing policies that favor “national champion” firms over
foreign competitors and that this trend worries American business leaders. He said that while China
has acted recently to address problems of product safety, “China’s response to date had not
inspired confidence.” He conceded that given China’s economic nationalism, it is not surprising
that many Americans are concerned and that this concern is reflected in the legislation pending in
Congress.

The House Ways and Means Committee currently is working on comprehensive legislation to deal
with a number of aspects of trade with China.

Padilla said, however, that legislation is not the way to go, warning, “The blunt instrument
of punitive legislation will not work.”

Instead, he said the administration’s approach will be to continue a three-pronged engagement
strategy that combines dialogue with “intelligent use of leverage.” Those steps would include
continuation of “intensive” dialogue with China through the Joint Commission on Commerce and Trade,
use of the World Trade Organization’s dispute mechanism and effective application of current US
trade remedy laws, although he is opposed to legislation supported by US textile manufacturers and
others that would define currency manipulation as an unfair trade practice that should be dealt
with under US anti-dumping and countervailing duty laws.

Padilla said the administration’s three-pronged approach offers a comprehensive strategy to
influence Chinese behavior on everything from specific market access problems to broad
macroeconomic concerns. He added that it “combines dialogue with tough enforcement and can be
calibrated to respond to Chinese actions.

February 5, 2008

After the overall pessimistic messages of the last few weeks and months, this is good news: The
Rieter Group recorded record sales and orders received in 2007. The order volume rose to CHF
4,066.4 million (US$3,698 million), which is a 7-percent plus compared to the previous year. Also,
sales rose to a new all-time high of CHF 3,930.1 million (US$3,574.3 million), this is 12-percent
higher than 2006. The performance is solely based on organic growth in both divisions. Exchange
rate movements had a slightly positive impact too on the group sales. Based on the trend in
operating results at the Textile Systems Division, Rieter expects an improvement in the operating
result and a further increase in net profit and earnings per share for 2007.


Rieter says the global economy developed positively in 2007. Growth was a characteristic
feature in all major industrialized countries as well as in the emerging markets in Asia and Latin
America. Both divisions of the Rieter Group — Textile Systems and Automotive Systems — recorded
significant growth.

Textile Systems

For textile machinery producers, the investment climate on the world market was generally
favorable in 2007. The strongest demand for spinning machinery came from Turkey and from the Asian
countries India and China. Demand was especially strong in the first six months. According to
Rieter, major reasons for this success are a systematic renewal of the product offering, an
efficient global sales and service organization, and increasing value-added in India and China.

Compared with 2006, orders received were 6-percent higher, reaching a record level of CHF
1,703.1 million (US$1,548.8 million), compared with CHF 1,614.3 million (US$1,468.1 million) in
2006. Demand declined in the second half of the year. However, the intake of CHF 619 million
(US$563 million) still exceeded the average six-month figure for the years 2004 to 2006. Sales
increased by 18 percent to the historic record level of CHF 1,566.8 million (US$1,424.9 million).
Sales revenues lost as a result of the divestiture of the man-made fiber machinery business at the
end of 2006 were more than offset. By orders received, Turkey, India and China also headed the
sales rankings: Including Turkey, the division generated 71 percent of sales in Asia in the year
under review, compared with 67 percent in 2006.

All product segments contributed to the high order intake, spinning machinery as well as
technology components. Furthermore, Rieter secured large orders in the United States and Brazil,
where rotor spinning lines are traditionally in use.

The growing importance of the nonwovens sector is also reflected in the Rieter results: the
company received more orders for nonwovens production and pelletizing machinery than ever before.

Automotive Systems

Vehicle output increased worldwide. The production in 2007 rose by 5.3 percent to 69.6
million vehicles. Trends diverged in Rieter Automotive Systems’ two main markets, Western Europe
and North America. While vehicle production declined slightly in North America, it increased by 2.4
percent in Western Europe. The countries in Eastern Europe, Asia and Latin America recorded
significantly stronger growth in production.

Rieter Automotive Systems grew faster than vehicle production, especially in Western Europe
and North America. The division also posted a substantial increase in sales in South America.
Business with the Japanese manufacturers developed positively, especially in the United States.
Rieter Automotive Systems received major new orders for carpet systems in the United States and
deliveries started for various new car models. Therefore, Rieter is expecting further sustained
growth.

The division’s sales of CHF 2,363.3 million (US$2,149 million) were 8-percent higher. Growth
was just as strong in the second half as in the first six months of 2007. According to Rieter
comments, this organic growth was due to its “leading position as a supplier of acoustic and
thermal management systems. Rieter Automotive continued to support the automotive manufacturers’
goals of weight and CO2 reduction in 2007 with its weight-saving acoustic packages and aerodynamic
underfloor modules.”

More positive news is welcome. Please send to
jrupp@textileworld.com.



February 5, 2008

The Burlington WorldWide (BWW) division of Greensboro, N.C.-based International Textile Group Inc.
(ITG) and Italy-based Lanificio Alfredo Rodina S.r.l. have formed a partnership to market and sell
an exclusive line of fine worsted wool fabrics, launched this week as the Burlington® esenzia
Collection by Rodina.

Rodina, a family-owned luxury worsted fabric designer and producer located in the Biella
region of northern Italy, will develop and design the fabrics, which will be woven using the
lower-cost manufacturing platforms of ITG’s Mexico-based Casimires operation and ITG’s sister
company OCM India Ltd., based in India. BWW will market and sell the collection in North America,
and Rodina will do the same in Europe and Asia.

“We are very pleased to expand our design and product capabilities to include a lower-cost
platform that utilizes BWW’s global supply chain for our fine worsteds, in addition to our
established Italian line,” said Adriano Rodina, president, Lanificio Alfredo Rodina. “The Burlingon
esenzia line combines our renowned Bielli craftsmanship with the strength of the Burlington brand
to create a line of exciting new fabrics.”

“The ability to develop and produce Italian-inspired products through a lower-cost Indian
manufacturing platform opens significant new market opportunities for fine worsted fabrics,” said
Patrick Palmer, executive vice president, BWW. “The partnership with Rodina enhances BWW’s worsted
wool line and creates a level of luxury and value that has not been possible before.”

February 5, 2008

According to the most recent State of Trade Report released by the Switzerland-based International
Textile Manufacturers Federation, global yarn and fabric production and inventories, and yarn and
fabric orders in selected regions grew in the second quarter (Q2) of 2007, compared to the previous
quarter.

Q2 2007 yarn output rose by 1.7 percent over the previous quarter, with regional increases of
10.2 percent in North America, 2.6 percent in Europe and 0.9 percent in Asia; and a drop of 4.6
percent in South America. Compared with Q2 2006, output declined by 1.5 percent, reflecting
reductions of 20.7, 11.2 and 0.7 percent, respectively, in South America, North America and Europe;
and 2.7-percent increase in Asia.

Fabric production rose by 2.6 percent globally over the previous quarter’s output and fell by
2.6 percent year-on-year. Quarterly increases of 0.1, 1.9 and 11.4 percent were reported in Europe,
Asia and South America, respectively; while North American output declined by 1.3 percent.
Year-on-year, Europe, South America and North America registered respective decreases of 3.1, 6.6
and 20.7 percent; and Asian output grew by 1.7 percent.

Q2 2007 global yarn inventories reached a three-year high, rising 2.4 percent over Q1 2007.
Asia’s 5.6-percent increase and Europe’s 3.9-percent hike more than offset the 27-percent drop
reported for South America. Compared with Q2 2006, yarn stocks registered respective gains of 8.0
and 23.3 percent in Europe and Asia, and a 17.7-percent drop in South America.

Fabric stocks rose by 0.8 percent for the quarter, with increases in Asia and South America
of 0.7 and 21.7 percent, respectively; and decreases in North America and Europe of 3.2 and 7.2
percent, respectively. Compared with year-earlier levels, inventories were 21.3-percent lower, with
stocks in Europe dropping precipitously by 42.4 percent, and in Asia and North America by 15.6 and
10.5 percent, respectively; and in South America increasing by 9.8 percent.

Europe and Brazil registered quarterly yarn order gains of 1.1 and 4.0 percent, respectively,
and year-on-year reductions of 1.2 and 18 percent, respectively. Fabric orders also rose for the
quarter, by 2.6 percent in Europe and 8.5 percent in Brazil; and showed mixed year-on-year results,
with a 1.7-percent gain in Europe and an 11.9-percent drop in Brazil.

February 5, 2008

Greensboro, N.C.-based Unifi Inc., posted its second-quarter (Q2) 2008 earnings results, which,
though still in negative territory, continue to show improvement over year-earlier results.

The company reported a net loss, including discontinued operations, of $7.7 million or 13
cents per share for the quarter ended Dec. 23, 2007, compared to a net loss of $18.2 million or 35
cents per share for Q2 2007. Contributing to the negative figure were restructuring, severance and
impairment charges totaling $8.1 million.

Q2 2008 net sales from continuing operations totaled $183.4 million, compared to year-earlier
net sales of $156.9 million.

“The continuing improvement in our operating results reflects the positive impact of our
strategies to consolidate the US market and reposition the company in the commodity partially
oriented yarn market,” said Ron Smith, CFO. “Volume in the current quarter stayed stronger than
anticipated, despite retail performance and pressure from significant unexpected increases in raw
material prices. These raw material increases were related to temporary issues within the global
supply chain, and we expect prices to remain stable throughout the March quarter.”

February 5, 2008

We are living in a strange world. For centuries, hard work was for most ordinary people the only
way to make money. Of course, the Medici more or less invented the true banking system during the
Italian Renaissance and became not only rich but also very powerful. The end of the Medicis is
history too. However, hard work was the job to do to get out of the social mess and become at least
a member of the lower or middle class.

Gambling

In the Western world, this hard-work attitude has changed dramatically over the past two to
three decades. Making a lot of money is a new game: gambling on the stock exchange. Banks have
become bigger and bigger and made a fortune by buying and selling shares. With the increasing
income of the people, more money has been available and the banks and private traders have
encouraged people to do the same. Some of the most famous and very rich people of today didn’t make
their fortune with their hands, but using their brains.

Shareholder Value

“Lean business” and “shareholder value” have become very popular words among the financial
community. If a company is in trouble and the earnings drop, the first thing to do is to lay off
people. Nobody’s really asking, what went wrong? In the days of the true patrons, it was the
opposite: first, a safe working place for the people; personal pride was a leading and driving
force. More or less, the benefits came automatically; it was an environment of trust and
credibility.

But the true patrons mostly have disappeared. In modern times, CEOs, COOs or managing
directors are leading the listed company working with somebody else’s money. If they win, they get
big bonuses; if they lose, probably a golden parachute is waiting. Or again, more workers are
fired. Who cares for the people? The shareholder value must rise, and the analysts are waiting for
the next quarterly report. No time for reflection — just go.

When I was a boy, my favorite game at home was Monopoly. It was a personal satisfaction to
beat my Dad and a big pleasure for a whole weekend to buy and sell houses and hotels with fake
money. Some time ago, people started to do the same, buying houses. But this time it was the real
world. However, it seems that people and the banks forgot to consider that this time it was real
money. The end of the story is very well-known. The global economic system is jeopardized.

Who’s Supporting Whom?

It’s really a strange world. After wasting billions and billions, the same people are now
crying for help. Around the world, national banks are forced to support the modern Monopoly. And
who’s paying the bill?

My father always said: “Son, just spend your own money, and don’t dream of a dollar if you
can have 50 cents in your hands.” Probably I got the wrong education. But my father also said, you
can always tell the truth if you don’t owe money to somebody else.

January 29, 2008

As the Bush administration enters its final year, US Trade Representative Susan B. Schwab has
outlined an agenda that calls for approval of free trade agreements (FTAs), continuing pursuit of
the Doha Round of trade liberalization negotiations and addressing trade problems with China, “with
dialogue where possible and enforcement when necessary.”

Schwab expressed her concern over some of the legislation pending in Congress, saying, “This
is not a good time for Congress to be seeking quick fixes for complex international economic
challenges.” And she warns that unilateral actions can lead to retaliation.

With respect to specific issues, she called once again for congressional approval of the
pending FTAs with Colombia, Panama and South Korea. US textile and apparel manufacturers and
importers seem to be ready to go along with the Colombia and Panama agreements, but they are widely
split with regard to South Korea, and it appears at this time there is very little likelihood it
will be approved.

In a far-ranging discussion, Schwab called for continuation of a spirit of bipartisan
cooperation that has emerged since the Democrats took control of Congress. “Together we have
started down a new road, but we have yet to reach the final destination — indeed some fear that the
destination keeps being moved,” she said.

Referring to a May 10, 2007, agreement between leaders of Congress and the administration,
Schwab said, “I thought then, and I still believe that we can achieve a unified American approach
to economic engagement and leadership in the world that transcends party, president and Congress.”

Turning to China, Schwab mentioned a number of recent successes with cases the administration
has taken to the World Trade Organization (WTO), pointing out that the United States has won or
successfully settled cases 96 percent of the time. She said the United States is ready and willing
to settle disputes with China in “a business-like manner,” but warned that the admistration has
serious concerns about “unintended consequences of proposed legislation targeting China.”

Although the Doha Round of Trade negotiations has been on dead center for months, she says
the US government will continue to press ahead for an outcome that will “increase economic growth
and development and alleviate poverty by generating new trade flows in agriculture, goods and
services.” Schwab added: “The time for playing games is over. We have a window of opportunity. Let’s
use it and use it wisely.”

She believes the remaining months of the Bush administration will be “very busy on the trade
front, because we have the opportunity to get a lot of work done.”

January 29, 2008

Milliken & Company President and CEO Dr. G. Ashley Allen, will retire May 1, 2008, capping a
38-year career with the Spartanburg-based textile manufacturer. Allen was named president and COO
of the company in 2002 and was promoted to CEO in 2005 to succeed Roger Milliken, who continues to
serve as chairman of the Board of Directors.

Allen earned a bachelor’s degree in chemistry from Washington & Lee University and a
doctorate in organic chemistry from Cornell University. His career with Milliken began in 1969 with
his appointment as a research chemist at Milliken Research Corp. and led him into various
leadership positions including the presidency of the Chemical & Packaging Division, Chemical
& Industrial Specialties Division and Milliken Research Corp. prior to his more recent
positions.

Dr. Joseph M. Salley, promoted to COO in 2006, will succeed Allen as president and CEO, effective
May 1. Salley earned a bachelor’s degree in chemistry from the Citadel, and a masters degree and
doctorate in chemical engineering from Stanford University. He joined Milliken in 1994 as a
research & development engineer for Milliken Chemical and served in various positions including
the presidency of the Industrial Specialties Division, Milliken Research Corp. and the Performance
Products Division prior to his current position.

“Joe Salley inherits the big shoes of Ashley Allen, who has provided tremendous leadership
to this private manufacturing company,” said Milliken. “In elevating Joe to the CEO leadership
role, we are happy to again be promoting from within, which is testimony to Milliken’s commitment
to recruit, educate, challenge and promote the best possible talent. Joe has done an excellent job
in his present capacity and is well prepared for his new responsibilities.”

Allen (left) and Salley

As another testimony to Milliken’s commitment to excellence, the company has once again been
named as one of Fortune magazine’s “100 Best Companies to Work For,” marking the fourth time in
five years that the company has made the list. Milliken ranked 92nd on the 2008 list, and 31st on
the Best Medium-Sized Company list, and is the only South Carolina company to be included.

“Making Fortune’s ‘100 Best Companies to Work For” list for the fourth time is an
exceptional way to cap a great year,” said Salley, who announced the news during Milliken’s Winter
Management Conference. “If you take into account the hundreds of thousands of companies that exist
in the US, it is great recognition for our associates to be ranked among the top 100 of the Fortune
survey.”



January 29, 2008