Monarch Knitting Machinery Corp., through its subsidiary Monarch Machinery LLC, has acquired
Trustfin a.s., located in the Czech Republic. Trustfin’s largest holding is Uniplet, the Czech
manufacturer of hosiery knitting machinery and the Charlotte line of seamless knitting machinery.
Uniplet, founded in 1949, is renowned for its Ange line of sports sock machines, as well as its
men’s Dera and women’s Edis hosiery machinery models. Monarch first became involved with
Trustfin/Uniplet in a joint venture to build seamless body size machines. Circumstances put Monarch
in a position to acquire the Czech companies. Bruce Pernick, president of Monarch, was impressed
with the level of technology and know-how at Uniplet, as well as the proactive and sophisticated
marketing and administration at Trustfin. Pernick also recognized the synergy that could exist
between its Vanguard division and Uniplet. Now that Trustfin/Uniplet has a solid company like
Monarch behind it, Pernick is confident that its current customers will feel reassured, and new
customers will have the confidence to consider Uniplet a very viable alternative.



Press release courtesy of Monarch Knitting Machinery Corp.

September 2004

Globaltex Inc., Davidson, N.C., has moved its entire production operation from Mexico to
Martinsville, Va., to take advantage of shortened lead times and proximity to its suppliers and
customers. Founded in 1994 as a manufacturer of chenille yarns for US upholstery fabric
manufacturers, the company benefited from the North American Free Trade Agreement (NAFTA) by using
US-supplied polypropylene, acrylic and polyester to produce the yarns in its factory in Mexico.
Early this year, it opened a facility in Martinsville, taking over a former VF Activewear plant
that had closed the previous year. Globaltex plans to invest more than $5.2 million in its
Martinsville operation over a 30-month period, ultimately employing 154 workers there. It also has
received more than $600,000 in government grants and job training funding.

“We have always bought our materials in the United States, and we are firm believers in NAFTA
because it works both ways,” said Jose Antonio Diaz-Llaneza, president and CEO, Globaltex, “but
being closer to our suppliers and customers is a big advantage, and Virginia is a great place to do
business.” He said the company’s polypropylene supplier, Drake Extrusion, is located just two miles
from the new plant. “We have reduced our lead times from five weeks to three, and to just one week
if there’s an emergency,” he added.

“The availability of experienced textile workers from VF Activewear and Pillowtex [which went
out of business last year] also has helped us a great deal,” he said, “as has all the help from the
Commonwealth of Virginia with training.”

Diaz-Llaneza said Globaltex is proceeding on schedule with its US plan, and expects its
workforce to total more than 50 by early September. The plant in Mexico is now closed, and its
machinery and equipment are being installed at the Martinsville plant.

September 2004

Greensboro, N.C.-based International Textile Group (ITG) has selected Italy-based Porini S.r.l.’s
Extended Enterprise Resource Planning (EERP) solution to manage its operations. The solution
includes: G-TeX for sales support, order management, production management, purchasing and
distribution; visual planning and scheduling tools for production capacity and resource utilization
optimization; and the Collection Development System for product development calendar, product data
management/product specification and costing management.

“The inherent flexibility of [Porini’s] systems will enable us to operate each business unit
with the appropriate tools, on a common application platform,” said Barbara Sorkin, vice president
and chief information officer, ITG. “Furthermore, we have found Porinis spirit of collaboration and
partnership a great fit for us as we focus on distinguishing our business in new and innovative
ways.
”

September 2004