From Jan. 1, 2007, Santex Project + Sales will cease to exist. The newly founded Swisstex
Machinery Inc., based in Pfaffhausen, Switzerland, under the direction of Uwe J. Sick — until this
time project and sales director, Santex AG — along with current Santex Project + Sales associates
and with support from a network of experienced specialists, will focus on complete textile
finishing projects including, in particular, new knitted fabric finishing plants, extensions and
modernizations. Project packages will include production systems, infrastructure, a range of
engineering services, building services, automatization, logistics, and plant maintenance.

Until its acquisition by Zimmer in 2003, Fleissner was a family-owned company founded in
1848 originally as a blacksmith’s workshop. In the ensuing years, the company grew to include an
iron foundry, and soon began to provide products to various sectors of the local textile industry.
Today, it specializes in aqua-jet entangling lines for the nonwovens sector, man-made staple fiber
production lines, through-air drying lines and textile finishing lines.

Hans-Georg Buckel and Jürgen Heller, Ph.D., will continue as managers of Fleissner, which
currently employs 350 people.

The Trützschler Group, which has subsidiaries in six countries and some 2,200 employees
globally, acquired shares of Germany-based nonwovens machinery manufacturer Erko in 2005. According
to Trützschler, Fleissner’s product line, particularly for the nonwovens sector, will complement
the Erko Trützschler line of nonwovens machinery, enabling the supply of complete lines for that
sector.

Trützschler also produces nonwovens machinery in the United States at its Charlotte-based
subsidiary, American Truetzschler, which also services the machinery. It also maintains production
and service operations in Brazil, China and India.

“Moving production from Ponce to the Caribbean basin is necessary to improve Hanesbrands’
efficiency and competitiveness,” said Gerald Evans, executive vice president and chief global
supply chain officer, Hanesbrands. “As part of our multiyear supply chain improvement strategy,
Hanesbrands is ramping up high-volume, lower-cost production in new textile manufacturing
facilities in Central America and the Caribbean basin.”

Evans expressed regret for the loss of jobs in Ponce, adding, “We have a good workforce in
Ponce, but this move is an economic necessity for our organization overall in today’s competitive
global market and does not reflect the quality and dedication of the Ponce workforce.”

The 12-member bipartisan commission was created by Congress to investigate and analyze US
relations with China and make recommendations to Congress and the administration with regard to
economic and national security implications of the US/China relationship. During this past year,
its members met with Chinese government and communist party officials, Chinese business leaders,
American diplomats and American business people working in China.

The commission’s report contains 44 recommendations, several of which are related to trade
in textiles and other manufactured products. Chairman Wortzel said that while China has
demonstrated it understands its obligations to the 149 other countries in the World Trade
Organization (WTO) and has made considerable progress in writing internal legislation and
regulations, it is “falling short on its implementation of new laws and regulations and is failing
to adequately enforce laws already on the books.” He said this is particularly true with respect to
protection of intellectual property rights. Wortzel said Congress needs to urge the US Trade
Representative to press ahead “ aggressively” with cases against China’s failure to enforce
intellectual property rights.

In connection with other international trade issues, the commission pressed particularly
hard for action to address China’s currency manipulation. In that regard, the commission
recommended that Congress urge the administration to take to the WTO and the International Monetary
Fund a complaint about China’s manipulation of currency. It also recommended that Congress pass
legislation to modify requirements for the Treasury Department’s biannual report on countries that
practice currency manipulation, making it clear that countries that artificially peg their currency
in order to gain a trade advantage are violating international trade rules. In addition, the
commission urged Congress to pass legislation granting the US Department of Commerce authority to
impose countervailing duties against products imported from nonmarket economies.

Auggie Tantillo, executive director of the Washington-based American Manufacturing Trade
Action Coalition, which represents a number of manufacturing industries, including textiles, said
the incoming Congress needs to seriously consider the commission’s recommendations and “act
appropriately,” adding that Congress needs to hold the Bush administration accountable for “
failures in its China policy.” He said a good first step would be enactment of legislation to
combat currency manipulation.

In 2005, the United States had a record $202 billion trade deficit with China, and it
appears 2006 is headed for a 10-percent increase over last year.

“Our clear goal is reaching a top-quartile position among our peers in value creation,” said
Jan Secher, CEO. The company looks to achieve a 25-percent increase in the return on invested
capital by the end of 2009.

In order to become more customer- and market-focused, Clariant will revamp its sales and
distribution operations. “Our product-driven businesses, which represent 40 percent of our
portfolio, need to be managed with an intense focus on efficiency, maintaining an extremely
cost-competitive structure, while our service-driven businesses need to combine cost leadership
with application technology and solutions know-how,” Secher said.

In addition, the company will further centralize certain group functions — such as site
services, sourcing and supply chain management — that support its four divisions: Textile, Leather
& Paper Chemicals; Pigments & Additives; Masterbatches; and Functional Chemicals.

Plans also call for expansion of capacity to supply product to the company’s growing markets
in Asia, especially in China and India. At the same time, Clariant will close sites, particularly
in Europe, in order to tighten its global site network.

In addition to the planned 25-percent reduction in product variety, the company reported it
already has reduced its offering of textile dye products from approximately 3,000 to some 500,
resulting in much improved operational efficiency.

“The approach is one of strategic simplicity and increasing versatility,” Secher said. “That
means being highly intelligent about how we both reduce and manage complexity. This is being done
so that it lowers our production, sales and delivery costs in a long-term, sustainable way,” he
added, noting that the company offers a mix of specialized and standard products.

The company’s recently established Clariant Academy will offer its employees opportunities
for professional development, pinpointing proficiency in performance management and creating
programs for sharing expertise across all businesses.

The trade associations have written the president and both Democratic and Republican leaders
of the House and Senate urging them to act on:

· The Andean pact involving Peru, Colombia, Bolivia and Ecuador, which is due to expire
December 31. They say the Andean region is an important and growing market for US textile exports,
but the prospects for this market are “troubled.” They said, “Anticipating the imminent loss of
duty-free access for that region in less than 60 days, many US apparel importers have begun
shifting their business elsewhere.”

· Approval of the US/Peru Trade Promotion Agreement (TPA). That agreement already has been
signed by both governments and has received congressional hearings and mock mark-ups in both
chambers, so it could be enacted swiftly.

· Approval of the US/Colombia TPA, which still has to be signed, could be taken care of
before Congress adjourns. The time frame for that to happen is extremely tight, which underscores
the importance of enacting the Andean pact extension granting duty-free treatment of apparel
imports until the bilateral agreement is finalized.

“[CSB World is] very pleased to have this opportunity to work with Springs Industries and
the current management and employees of Decorative Floor Inc. to continue to help build on the
successes they have demonstrated in the accent and area rug markets,” said Brook Johnson, founder
and CEO, CSB World Carpets.

“We are pleased to position our decorative floor business for future growth with CSB World,”
said Crandall Bowles, chairman, Springs Industries. “We believe this will be a positive
development, for our employees as well as our customers. … [W]e expect to work closely with CSB
World on specific marketing initiatives for certain customers.”

Tina Gunter, formerly head of marketing at Springs Decorative Floor, will serve as
president, CSB World. She will continue to be responsible for design, sales and marketing in her
new position. David Wingate, formerly in charge of financial activities at Springs Decorative
Floor, will serve as executive vice president, CSB World, with responsibility for operations and
financial activities.

Springs Decorative Floor and another business unit, Springs Window Fashions, remained under
the umbrella of Springs Industries after the company folded its textile home fashions operations
into Springs Global US Inc. — the US subsidiary of Springs Global Holdings S.A., Brazil, formed by
the merger of Springs’ home textile business and its Brazil-based supplier, Coteminas — in late
2005. Springs Industries continues to operate Springs Window Fashions.

Applications for the low-shrinkage fibers include broadwoven and coated fabrics for awnings,
geosynthetics, outdoor upholstery, roofing, signage, tarps and tents. The expansion also will allow
increased production in South Korea of adhesive active yarns for consumer hoses and belts, and
fiber for automotive seat belts.

“The investment we are making to increase capacity and develop next-generation polyester
products demonstrates the joint venture’s dedication to be successful as the largest supplier of
low-shrink, high-tenacity polyester fibers to the automotive and industrial segments we serve,”
said Yoon Kim, chairman and CEO, Sam Yang Corp.