DyStar To Acquire Boehme Group

Frankfurt-based textile and leather
dye, auxiliary and services provider DyStar Textilfarben GmbH & Co. Deutschland KG has agreed
to acquire the business activities of the Germany-based Boehme Group — also a supplier of dyes and
auxiliaries for textiles and leather processing — for an undisclosed price. The transaction is
expected to be completed by mid-August of this year.

The acquisition includes Boehme’s 16 affiliates and 11 production sites, which employ more
than 700 people in Argentina, Australia, Austria, Brazil, Canada, China, Ecuador, Israel, Mexico,
South Africa, Thailand and the United States.

“Boehme broadens our extensive product offering for the textile industry and strengthens our
position in the leather business,” said Clemens Willée, Ph.D., CEO, DyStar. “Our combined expertise
will make us an even more reliable partner for our customers in the future.”

According to a statement by its shareholders, Boehme conducted an extended search “to find a
partner that fits well with our company. An important part of this process was to ensure minimal
product portfolio overlap to enable the maximum growth potential for our business. In this regard,
we are convinced that DyStar represents the optimal partner.”


June 20, 2006

Gildan To Acquire Kentucky Derby Hosiery

Montreal-based branded basic apparel
manufacturer Gildan Activewear Inc. has agreed to acquire Hopkinsville, Ky.-based Kentucky Derby
Hosiery Co. Inc. for approximately $45 million. The deal is expected to close on or around July 3,
2006.

With $130 million in annual sales, Kentucky Derby produces hosiery products primarily for
mass retailer private-label programs. Gildan plans to use the company’s experience and mass-market
distribution system to help build its own brand as well as to continue to provide products for
Kentucky Derby’s brand licenses and private-label programs.

Gildan also is expanding its Rio Nance manufacturing complex in Honduras, adding two new
facilities there including one for large-scale production of athletic socks. It also is in the
process of bringing a new textile facility online in the Dominican Republic.

Kentucky Derby majority owner and CEO William H. “Bill” Nichol Jr. will remain on board to
lead the hosiery business, working with Gildan’s sales and marketing team to improve Kentucky
Derby’s existing business, develop Gildans retail brand for basic apparel and promote Gildans
position in the US hosiery market. 

June 20, 2006

PGI To Expand Capacity In Argentina

Polymer Group Inc. (PGI), North
Charleston, S.C., has announced plans to more than double the production capacity of its
joint-venture facility, Dominion Nonwovens Sudamericana S.A. (DNS), in Buenos Aires, Argentina, to
better serve its customers for hygiene products in the Common Market of the South (Mercosur)
trading region.

Installation of the state-of-the-art wide-width, multibeam spunbond line — which will have
an annual production capacity of more than 15,000 tonnes — will begin during the second half of
2006, and the company expects to begin commercial production on the line in late 2007.

The new line will produce high-quality, fine-denier top sheet and other materials for diaper
applications. DNS also will combine the new line’s capacity with its coating capabilities to
produce value-added goods such as cloth-like backsheet.

“The developing regions of the world, like Argentina, hold significant potential for PGI as
we continue to execute on our strategy of growth by offering the right product in the right places
around the world,” said James L. Schaeffer, CEO, PGI. “Our joint venture in Argentina is recognized
as a world-class producer of engineered materials, and this line will enable us to continue to
provide the highest-quality products available in the markets to customers where they need them.”

DNS began operations in Buenos Aires in 1997, installing a multibeam spunmelt line to
provide hygiene and industrial products in Mercosur markets. In 2003, it added an extrusion line to
expand its production capabilities.


June 20, 2006

GretagMacbeth Launches Color I7 Spectrophotometer

GretagMacbeth — part of
Switzerland-based Amazys Holding AG and an enterprise color-management solutions provider with
offices in the Americas, Europe and Asia — now offers the Color i®7 fully automated
spectrophotometer with a unique embedded profiling function to enable accurate digital color
control in textile and apparel, furniture, automobile interiors and other applications.

According to the company, Color i7 ensures color consistency in product or product component
design, specification and manufacture; and its unique self-diagnostic function reduces production
errors and slowdowns, thus speeding up time-to-market. In addition, its open technology is
integrated easily with most digital workflow systems, GretagMacbeth reports.

“… [T]he more complex and global the supply chain becomes, the more difficult it can be to
control color,” said Jan-Paul van Maaren, vice president and general manager, Color and Appearance,
GretagMacbeth, noting the importance of color as an indicator of quality and driver of product
sales. “The Color i7 system helps companies to digitize color in their workflow so they can more
easily, reliably and cost-effectively manage their suppliers and factories the world over.”

Functions include a periodic prompt for the operator to verify performance, enabling quick
onsite correction of any color drift using the company’s NetProfiler® Internet-based software. The
instrument also creates a digital signature with each color measurement. It can be used in
conjunction with GretagMcbeth’s Color i®Match and Color i®QC software, and can be programmed to
adjust for job-specific variables.


June 20, 2006

Ciba Forms Joint Venture With Virchow

Switzerland-based Ciba Specialty
Chemicals Inc. has agreed to form a joint venture with Virchow Group, a Hyderabad, India-based
pharmaceutical company whose Virchow Drugs Pvt. Ltd. business manufactures Triclosan, an
antimicrobial originally developed by Ciba and used in products ranging from deoderants, soaps and
toothpaste to shower curtains and technical textiles.

Under the agreement, Virchow Drugs will use Ciba technology to upgrade its Triclosan
manufacturing operation, enabling it to produce the antimicrobial ingredient to meet United States
Pharmacopoeia quality specifications and international environmental standards. The joint venture
also will allow Ciba to improve its market position in Asia and expand its interest in Asian
cosmetic markets.

“This cooperation allows Ciba to further increase its position by expanding the offer of
quality antimicrobial products in the Asian region, where Ciba has a well-established presence,”
said Leonardo Harsch, global head of Ciba’s Detergent & Hygiene business. “The high quality
production facilities of Virchow and Ciba’s leading position in the Triclosan business fit together
very well.”


June 20, 2006

Australian Wool Companies Trust Form Training Center

Wool research and development company
Australian Wool Innovation Ltd.’s the International Fibre Centre — a textile processing and
manufacturing education and training company — and the Australian Wool Education Trust — a fund
provider for undergraduate and/or post-graduate training in wool and wool science and technology —
have founded the Australian Wool Textile Training Centre. The center, which will be housed within
the Commonwealth Scientific and Industrial Research Organisation in Geelong, Victoria, will offer
courses designed for international wool industry professionals who want to increase their knowledge
and skills, especially in the use of Austrialian wool.

The center will offer its first series of courses from Sept. 18 to Oct. 3, 2006. The courses
will focus on all sectors of the wool textile industry — from growers, brokers, buyers and service
providers to processors, textile manufacturers, designers, retailers and merchandisers.
Participants may earn a certificate upon completion of one or more of the seven courses, which also
will feature industry tours and demonstrations.

The program also will offer the opportunity to learn more about the Australian wool
pipeline, including how that wool is purchased, manufactured into textile products and
marketed.


June 13, 2006

Fleissner, Albany International Team To Develop New Patterning Technology

Germany-based spunlace equipment
supplier Fleissner GmbH and Albany International Corp., an Albany, N.Y.-based supplier of
custom-designed spunlace nonwoven fabrics and sleeves for specialty applications, have entered into
a mutual cooperation to develop and sell new product patterning technology.

“This agreement between Albany International and Fleissner GmbH will assist in the rapid
introduction of new patterning technologies for our customers,” said David Peacock, vice president
and general manager, Global Engineered Fabrics, Albany International. “We appreciate the
opportunity to partner with an exceptional [original equipment manufacturer] such as Fleissner on
this recently developed technology and look forward to future developments in this area.”

“The cooperation of Fleissner and Albany will create opportunities to speed up the process
of customized patterning … during product development as well as continuous production,” said
Jürgen Heller, Ph.D., managing director, Fleissner. “We look forward to further strengthening our
relationship with Albany to the benefit of our customers.”


June 13, 2006

United States And South Korea Negotiate On FTA

On June 9, the United States and
South Korea concluded an initial round of negotiations on a free trade agreement (FTA) with no
progress reported on textile and apparel issues. While saying the negotiators made progress in a
number of areas, Assistant US Trade Representative Wendy Cutler conceded that a good deal of work
needs to be done if negotiators are to meet their goal of completing an agreement by the end of
this year.

Textiles and apparel are expected to be among some of the most contentious issues. While US
textile manufacturers would rather not have an agreement at all, they say that if an agreement is
pursued, it should have a yarn forward rule of origin, an effective short supply mechanism, no
tariff preference levels and no cumulation that would allow inputs from countries that have FTAs
with the United States.

Textile importers, on the other hand, are seeking flexibility that would encourage more
trade not only with South Korea, but also with other countries. Julia Hughes, vice president for
international trade and government relations for the New York City-based United States Association
of Importers of Textiles and Apparel, said the Korean agreement presents an opportunity to develop
a network between Korea and other countries that have FTAs with the United States, and those
linkages would result in more trade in areas where the United States is committed to encouraging
trade.

Cutler said the progress to date is “encouraging,” and she feels it will be possible to meet
the December goal for completing the agreement. That date is important because US trade negotiators
want to win congressional approval before the President’s Trade Promotion Authority expires next
July.

Another round of negotiations is scheduled July 10 in Seoul, and other talks will continue
throughout the summer and fall.

June 13, 2006

Solutia Raises Nylon Carpet Fiber Price

Solutia Inc., St. Louis, has
announced a 5- to 7-percent price increase for all nylon carpet fiber products shipped on or after
July 5, 2006. The company cited increased raw material and energy costs as reasons for the price
hike.


June 13, 2006

Susan C. Schwab Confirmed As Trade Negotiator

The US Senate has confirmed the
nomination of Susan C. Schwab as US Trade Representative (USTR) after the action was held up
briefly over questions about how tough she would be on China. Schwab had been serving as deputy
USTR.

Following her confirmation, Schwab said she is committed to move ahead with bilateral and
multilateral trade negotiations that are part of President George W. Bush’s “vision for free and
fair trade.” The new USTR faces a daunting trade agenda, including moving forward with the stalled
World Trade Organization’s Doha Round of trade liberalization negotiations, trade relations with
China and a number of pending or proposed bilateral free trade agreements.

The Arlington, Va.-based American Apparel & Footwear Association (AAFA) praised the
nomination and urged Schwab to make full implementation of the Dominican Republic-Central America
Free Trade Agreement (DR-CAFTA) her “top priority.” AAFA President and CEO Kevin Burke said Schwab
has been actively engaged in developing the US strategy for the Doha Round and has successfully
concluded other agreements. He noted that she has already developed close working relationships
with her counterparts in key countries around the world, as well as key members of the US Congress,
adding “that will serve her well as she prepares to move the Doha Round towards a successful
conclusion, completes implementation of CAFTA and works towards conclusion and congressional
approval of free trade agreements with Thailand, Colombia, Peru, South Korea and Malaysia.”


June 13, 2006

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