An investor group led by New York City-based WL Ross & Co. LLC has agreed to purchase the
assets of West Point, Ga.-based home textiles manufacturer WestPoint Stevens Inc. The group also
includes holders of a majority of the company’s senior credit facility.

WestPoint Stevens filed for Chapter 11 bankruptcy protection in June 2003, and filed a
reorganization plan with the bankruptcy court in January 2005. It now also has filed an asset
purchase agreement as an alternative to that plan, according to Lorraine D. Miller, senior vice
president, finance and external communications, WestPoint Stevens. The agreement calls for
distribution of equity in the new company to holders of outstanding senior secured debt and a
rights offering to raise $207.5 million of equity capital. Among other details, the companys’
common stock would be cancelled with no payment, and the company would emerge from bankruptcy
debt-free.

The agreement also sets a closing date of no later than July 31, 2005. Ross’s group is
positioned as the stalking horse in an open bidding process that must be approved by the bankruptcy
court. A $5 million breakup fee will be payable to the group if a higher bidder prevails. The
WestPoint Stevens acquisition would be WL Ross’s third textile acquisition in the United States,
following purchases in late 2003 and early 2004 of Greensboro, N.C.-based Burlington Industries
Inc. and Cone Mills Corp., which were consolidated into the International Textile Group (ITG).

WestPoint Stevens’ history mirrors the story of today’s textile industry, in which
consolidation, acquisitions and mergers, and refocused manufacturing strategies have become
necessary in order to compete successfully in the current global market. The present company is
itself the product of mergers and acquisitions involving textile giants West Point Manufacturing
Co., Pepperell Manufacturing Co. and J.P. Stevens & Co. Inc. While West Point was formed in the
South just after the Civil War to bring economic opportunities to the region and foster competition
with Northern manufacturers, both Pepperell and J.P. Stevens were founded some years earlier in New
England and later built mills in the South, which offered lower labor and other costs. This
situation can be likened to the present-day shifting of manufacturing operations to and product
sourcing from lower-wage countries.

“We expect that WestPoint would expand its business and would supplement its highly efficient US
manufacturing with manufacturing in other lower-wage-cost countries,” said Wilbur L. Ross,
chairman, WL Ross, commenting on his vision for the company’s future. Asked whether the company
might one day be consolidated with ITG, he added, “[T]heres no obvious synergy between the two.
Each is a large enough company to be independent.”

April 2005

American & Efird Inc. (A & E), a Mount Holly, N.C.-based manufacturer of industrial
and consumer sewing thread, has purchased certain assets of Ludlow, Mass.-based Ludlow Textiles Co.
Inc.’s thread and specialty yarn business for an undisclosed purchase price.

Founded in 1868, Ludlow had sales in 2004 totaling approximately $13 million and employs more
than 100 people. The sale of assets to A & E comes in conjunction with Ludlow’s
announcement that it will cease all operations over the next year. Operations acquired by
A & E will be transitioned into its own manufacturing operations over the same period.
“Our number-one priority is to support the many Ludlow customers that we will gain as a result of
this transaction,” said Fred A. Jackson, president, A & E. We will continue to offer the
products they are currently buying and provide the customer services they require.”

Ludlow’s product line includes threads, yarns, cords, twines and tapes used primarily by
non-apparel industries.

April 2005

Everlast Worldwide Inc., manufacturer, marketer and licensor of sporting goods and apparel under
the Everlast brand name, today announced that it entered into an extensive licensing agreement with
Globus Trading Group GmbH, based in Nuremberg, Germany. Under the terms of the agreement, the
following products will be introduced: men’s and women’s underwear in all of Europe except the
U.K., Republic of Ireland, Italy and Turkey; men’s and women’s socks in all countries with the
exception of Italy and Turkey; boxing equipment, handheld exercise equipment, aerobic
equipment (treadmills, etc) and weight lifting equipment in all of Europe with the exception of the
U.K. and Republic of Ireland; men’s, women’s and children’s apparel in Chechnya, Belarus, Slovakia,
Serbia and Montenegro, Bosnia and Herzegovina, Croatia, Macedonia, Estonia, Lithuania, Ukraine,
Armenia, Azerbaijan, Uzbekistan, Tajikistan, and Georgia.

The new Everlast products produced by Globus Trading Group GmbH will be ready for shipment late
in the third quarter of this year and will be distributed through sporting goods retailers and
better department stores. George Q Horowitz, chairman and CEO of Everlast Worldwide Inc., said, “As
a result of this agreement, the Everlast brand has taken a giant step forward in its international
expansion program as we will now be in 101 countries. Our licensing program continues to gather
momentum due to the increased consumer awareness generated by our involvement with NBC’s ‘The
Contender’ reality-based television series as well as the appreciation for the uniquely American
character of the Everlast brand. In addition, through this agreement Everlast is now in a position
to offer an extensive array of products almost identical to those currently available in the U.S.
We will continue to explore additional international opportunities for new licensing agreements.”

Press Release Courtesy of PR Newswire

April 2005