WestPoint International Reports Q4 FY 2006 Losses

WestPoint International Inc. (WPI), an indirect subsidiary of New York City-based American Real
Estate Partners LP (AREP) that comprises AREP’s Home Fashion segment, reported net revenues of
$236.6 million and an operating loss of $40 million in the fourth quarter (Q4) of 2006. These
figures represent a decrease of 18.2 percent and an increase of 131.2 percent, respectively,
compared with Q4 2005 results. The operating loss includes restructuring charges totaling $12
million.

For fiscal year (FY) 2006, WPI reported revenues of $957.6 million and an operating loss of
$150.6 million. As the company did not begin operations until August 2005 as a result of its
acquisition of the assets of West Point, Ga.-based WestPoint Stevens Inc., comparable FY 2005
figures were not available.

Looking forward, AREP reported it expects 2007 will see significantly improved results for WPI,
with gross margins more than doubling from the 6 percent average in 2006. AREP also said it
anticipates earnings before taxes, depreciation and amortization will potentially break even by the
end of 2007.


March 13, 2007

Congressional Group Backs New Trade Policies

US textile manufacturers and other
industries have thrown their support behind a bipartisan group of House members and senators who
are calling for a “new direction for trade.” The congressional coalition, with a few new members
added, was influential in supporting the Central America-Dominican Republic Free Trade Agreement.

At a Capitol Hill news conference, members of the congressional coalition did not lay out
any specific agenda, but they are calling for more congressional involvement and oversight on trade
matters. They said they will be playing an active role in the proposed extension of the president’s
trade promotion authority (TPA), promoting overseas labor standards, addressing currency
manipulation and “ensuring that the American work force can compete in global markets.”

The Washington-based American Manufacturing Trade Action Coalition (AMTAC) endorsed the
coalition’s call for new directions in trade, and called for a “comprehensive approach” to a number
of trade issues likely to come before Congress this year. AMTAC’s list of priorities includes TPA
extension, which it opposes; action on currency manipulation addressing the problem of value-added
tax rebates in other countries; and the South Korean free trade agreement (FTA) currently being
negotiated. AMTAC has been urging the US government to use access to the US market as leverage to
open more overseas markets for US goods.

The Washington-based US Business and Industry Council (USBIC) — which represents some 1,500
small and medium-sized companies — strongly supports the coalition, saying its legislative goals
could ensure the survival of US manufacturing. USBIC joined other organizations in attacking
currency manipulation, value-added tax rebates and extension of TPA; and went even further by
calling for a moratorium on additional FTAs.

USBIC President Kevin L. Kearns noted the United States has lost 3 million manufacturing
jobs since 2000 and had a record $763 billion trade deficit in 2006. He said that while
international labor and environmental standards are important goals, they cannot by themselves
create new US jobs and help domestic manufacturers. “The only market that we can truly regulate is
our own, and we need to use that lever of access to promote our own domestic industries,” Kearns
said.



March 13, 2007

Russell To Close Alexander City Facility

Atlanta-based Russell Corp. — a
freestanding subsidiary of Bowling Green, Ky.-based Fruit of the Loom Inc. — has announced it will
close its Plant #10 facility in Alexander City, Ala., by Oct. 31, 2007. The closure will affect
approximately 425 employees.

“This decision is in no way a reflection on the efforts of our employees,” said Phillip
Young, vice president, human resources. “Plant #10 has always been considered a premier operation
for the company, and we want to thank our dedicated employees for their service.”

According to the athletic and sporting goods manufacturer, the closure will improve Russell’s
position as it competes with apparel and textile imports from Asia.



March 6, 2007

Victor Forstmann To Shutter East Dublin Plant

Due to changing market demands,
apparel and specialty fabrics manufacturer Victor Forstmann Inc. — a wholly owned subsidiary of
Quebec-based Victor Woolen Products — has announced it will close its facility in East Dublin, Ga.,
by the end of next month. Approximately 124 employees will be affected.

“The news is unfortunate for everyone involved,” said Richard Duval, president. “We are
deeply saddened for the employees and this community. These employees have done an outstanding job
for us. We will do everything possible to assist these employees during this transition.”



March 6, 2007

Springs Global Sells Creative Products Business

Springs Global US Inc., Fort Mill,
S.C., has sold its fabric and specialty product business, Springs Creative Products Group, to
Derick Close for an undisclosed price. Close has managed the business, which employs about 160
associates, since 2000.

Operating as Springs Creative Products Group LLC with the trade name Springs Creative, the
company — which sells sewing and craft fabrics, and specialty and licensed products to regional and
national retail customers — will retain its distribution center as well as its design, sales and
marketing offices in Rock Hill, S.C.

According to Crandall Close Bowles, co-chairman and co-CEO, Springs Global, Springs Creative
was operating as a somewhat independent niche business within Springs Global. “We believe this sale
will allow Creative Products to better control its destiny and grow,” she said.

“I am excited about this opportunity to control and grow this business,” said Derick Close. “
Our products and customer base are unique, and our success is based on continually innovating and
developing new products for customers and consumers.”



March 6, 2007

Hudson, DuPont Launch New Membrane Technology For Bedding

Hudson Industries Inc. — a Richmond,
Va.-based manufacturer of products for the medical and consumer industries, and DuPont — a
Wilmington, Del.-based provider of science-based solutions for a wide range of sectors including
apparel, safety, protection and health care, among others, have partnered to launch HMT (Hybrid
Membrane Technology) for incorporation into luxury allergen-barrier bedding products marketed under
Hudson’s Science of Sleep® brand.

The technology provides the most efficient barrier to pet dander, dust mites, pollen, fungal
spores, viral allergens and most microscopic allergens, according to the companies. The new line of
bedding protection offers 95-percent efficiency after more than 50 washings.

Bedding products will become available in March and April.



March 6, 2007

Environmental Defense, DuPont Seek Public Input For Nano Risk Framework

New York City-based environmental
advocacy organization Environmental Defense and Wilmington, Del.-based science-based products and
services company DuPont have released a draft of A Framework for Responsible Nanotechnology for
public consideration. The two organizations now are soliciting public feedback in order to
fine-tune the document and provide the “greatest degree of relevance” for nanotechnology
applications in all sectors, with the expectation of publishing a final framework this summer.

The framework is intended to provide a flexible, practical system for assessing possible
environmental, health and safety risks related to nanoscale materials; and for documenting and
communicating methods and parameters to deal with those risks. “We believe that the adoption of the
Framework can promote responsible development of nanotechnology products, facilitate public
acceptance, and support the formulation of a practical model for reasonable government policy on
nanotechnology safety,” the draft framework states.

Environmental Defense and DuPont began their collaboration to develop the framework in
September 2005, putting together a multidisciplinary team comprised of experts from both
organizations in the fields of science, medicine, law, occupational safety and health, product
development and business development. The team received initial feedback from government, academic,
private-business and public-interest sectors; and incorporated that input into the draft framework.
They are currently pilot-testing the framework on a range of materials and applications, and they
are welcoming additional input, including any feedback from companies developing nanotechnology and
related products in the textile sector, in order to broaden its scope. The deadline for submitting
feedback is March 30.

The draft framework and an editable worksheet are available at
www.nanoriskframework.com



March 6, 2007

US Textiles: Optimism, Change And Innovation

As the first quarter of 2007 comes to a close, there is a sense among many in textiles that
business has stabilized. Even in segments like apparel, key players seem optimistic. The downside
is the long view — the insecurity regarding future business.

Unfortunately, lack of a sense of security is part of the new textile business paradigm — or,
more accurately,  the paradigm many have finally accepted after years of thinking they could
define their corporate destiny.

But hold on. This is not as negative as it sounds. Whether it is Glen Raven’s President Allen
Gant speaking at the recent Southern Textile Association meeting regarding the challenge of change
and the importance of personal freedom as it relates to innovation, or American Apparel’s Founder
Dov Charney speaking at the American Apparel Producers’ Network (AAPN) meeting in Santa Monica,
offering his view on pursuing fashion and serving the “international-class” customer — optimism is
a significant part of the entrepreneurial approach to business.

When successful people like these speak, the message that comes through is that very little
can stand in their way, and they are willing, if not eager, to meet their next business challenge.

This approach seems less about certainty and more about ability. Developing an inherent
corporate confidence that they can and will succeed through openness to the quick and drastic
changes demanded by the marketplace is at the core of these winning companies.

In markets like apparel, producers’ concerns about demand have moved beyond the retailer to
the consumer. As detailed at AAPN’s meeting by Carlos Arias, president of Koramsa, a well-known
Guatemala-based menswear producer: “When it doesn’t sell it’s our problem. Even if we’ve been paid,
it is our problem — it’s our future.” Arias explained how his company has changed drastically in
recent years and now is more open than ever, not to react to demand, but to understand trends
before the retailer asks for them.

For spinners, weavers, knitters and finishers, challenges abound. For those with the
flexibility necessary to serve today’s market — who know innovation and change are not optional —
the optimism of many industry leaders is not misguided.

One recent comment from a leading-edge knitter sums it up for many US producers: “If it comes
off a boat, I am not going to touch it.” He was refering to the abandonment of commodity or easily
produced products in favor of more complex products. “The harder to make, the better — that’s what
I’m talkin’ about,” he said.

Those are great words for an industry that has the ability, great minds and great technology
to succeed in a challenging environment. If the industry can embrace what Gant calls “changing the
channel” — if it can bring innovation and change to its core, just maybe the optimism of some of
its leading firms is the story of 2007. It’s not easy to develop that confidence, but as Gant said,
“You are the only one who can choose to change the channel” — to make the choices necessary to
change and innovate — choices necessary to win.



March/April 2007

Batson Group To Represent Dettin

Italy-based Dettin S.p.A., a
manufacturer of high-performance hydroextractors, has selected Greenville-based Batson Group Inc.
as its sales and marketing representative to fiber and yarn dyers in the United States and Canada.

“We are pleased to solidify our relationship with Dettin,” said Charles Little, group
manager, Batson. “They are a highly successful manufacturer with an excellent reputation in the
marketplace. It is a definite advantage for us to be able to offer their equipment, along with our
existing product line, to dyers.”



March/April 2007

DuPont Sorona® Earns Awards For Sustainability

DuPont Sorona® – Wilmington, Del.-based DuPont’s first polymer derived from a biological source –
recently received two awards in recognition of its environmentally sustainable benefits.

In China, Sorona beat out more than 1,000 other products to win the Most Visionary Innovation
in the sports and health category, presented by the China State Intellectual Property Office and
China Central Television.

 
FW-corngirl

The Society of Plastics Engineers, Brookfield, Conn., presented Sorona with its 2005
New Technologies in Renewable Materials and Processes award at the Global Plastics and
Environmental Conference, held last month in Atlanta.

DuPont scientists have developed a new process to derive 1,3 propanediol, DuPont Sorona® ‘s key
ingredient, from corn. The key ingredient in Sorona, 1,3 propanediol (PDO), was derived originally
from petrochemical sources. DuPont scientists recently developed a new process to derive PDO from
corn. The new process consumes more than 40 percent less energy than conventional petrochemical
feedstock. Bio-PDO will be available commercially in 2006.

March 2005

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