First-quarter (Q1) 2005 global fabric output continued at its record level, and yarn production was
virtually unchanged; while global fabric and yarn inventories were lower for the period, according
to the Switzerland-based International Textile Manufacturers Federation’s (ITMF’s) latest State of
Trade Report. 

South American fabric output rose 7 percent, while Asian production fell 1.2 percent.
European output was up 0.2 percent. Year-on-year global output grew 23.2 percent, led by Asia’s
53.6-percent growth. South American production fell 8 percent on an annual basis.

Global yarn production rose just 0.3 percent for the quarter and 1 percent year-on-year.
South America registered a Q1 production increase of 1.4 percent, and a 2-percent year-on-year
drop, while Asian output was down 0.5 percent for the quarter and rose 3.5 percent on an annual
basis.

Fabric inventories were down 1.3 percent for the quarter and up 4.6 percent over Q1 2004
stocks.

Yarn stocks were 0.7-percent lower for the quarter; but grew 13.8 percent year-on-year, with
increases in North America and Asia at 30.2 percent and 15 percent, respectively.

ITMF’s report on 2004 textile machinery shipments showed increases in weaving, flat knitting
and short-staple spindles; and decreases in texturing, circular knitting, long-staple spindles and
open-end (OE) rotors.

Of 8.2 million short-staple spindles shipped, 4.5 million went to China and 1.4 million to
Pakistan. Asia accounted for 92 percent of all shipments, compared with 88 percent in 2003.

Long-staple spindle shipments dropped 19 percent to 196,000 including 97,000 to China – an
18-percent increase; and 41,000 to Iran – a 64-percent jump; while shipments to Turkey were down 73
percent to 17,000.

OE rotor shipments, at 278,000 positions, were 20-percent lower than in 2003. China’s
41-percent share represented a 55-percent reduction over 2003. Turkey’s share grew by 19 percent.
India’s grew by 775 percent.

Single heater draw texturing and double heater spindle shipments were down 9 percent and 38
percent, respectively.

Shuttleless loom shipments increased 5 percent over 2003 to 65,500, with China taking 74
percent of shipments.

Large circular knitting machine shipments fell 6.8 percent to 9,400, and electronic flat
knitting machine shipments rose 21 percent to 11,300.



September 2005

Cotton Incorporated Welcomes Murata Machinery PresidentCotton Incorporated welcomed Daisuki Murata,
president of Murata Machinery Ltd Japan to its world headquarters in Cary, North Carolina on May
10, 2005. Murata Machinery is recognized internationally as the leading textile machinery
manufacturer for air jet and vortex spinners.  Since 1980, Cotton Incorporated has worked with
Murata Machinery, providing knowledge of fiber selection parameters and preparation procedures
necessary to produce 100% cotton and cotton-rich air jet yarns. This research led to the early
Murata Jet Spinner and the recently developed Murata Vortex Spinner (MVS). The MVS system more
efficiently transfers the air vortexs energy into a twisting action on the fiber bundle, enabling
the machine to spin 100% cotton. The design changes have also improved fabric appearance and
texture. We are impressed with Murata Machinerys technology, and will continue to develop and
implement MVS project work that addresses the needs of the U.S. cotton consumer, said J. Berrye
Worsham, President and Chief Executive Officer at Cotton Incorporated. Murata toured the Cary
facilities, observing the work being done around MVS technology, to improve the hand of MVS spun
fabrics, demonstrating the performance advantages of MVS fabrics.  Cotton Incorporated, funded
by U.S. growers of upland cotton and importers of cotton and cotton textile products, is the
research and marketing company representing upland cotton.

Press Release Courtesy Of Cotton Incorporated
August 2005

Jagenberg AG Is New Kusters ShareholderOn and with effect from 1st August 2005, Jagenberg AG,
Krefeld, acquired 100 percent of shares in the equally Krefeld-based Eduard Kusters Maschinenfabrik
GmbHandCo. KG including all its subsidiaries. The search for a new, strong partner for the future
positive development of the Kusters Group has therefore been completed successfully and according
to plan. Due to a lot of common ground between the companies, both in their corporate philosophy
and in the areas of products and services, the now enlarged group of companies will be able to
provide new impetus for growth.Common ground can be found in particular with Jagenbergs associated
company Kampf GmbHandCo.KG Maschinenfabrik, based in Wiehl-Muhlen. Both Kusters and Kampf occupy
leading positions in theconstruction of machines and plants for producing and finishing sheet
material. While Kampfconcentrates mainly on plastic and aluminium foils, Kusters targets the
textile, nonwoven and paperindustries. There will be further advantages in mutual utilisation of
all the sales and productionlocations of both companies.In Jagenberg AG and its majority
shareholder Kleinewefers Beteiligungs-GmbH (Krefeld) Kusters hasfound an ideal partner which, as a
medium-sized entrepreneur, understands our company tradition and is prepared to invest in further
expansion of our leading market position, says CEO Dr Erich W. Broker, looking into the future
positively. The former shareholders the Kusters family couldnt agree more. They have let it be
known that they believe the Krefeld solution to be an extraordinarily good combination of
traditional entrepreneurial values and clear commitment to further growth.By acquiring Kusters,
Jagenberg took a substantial step towards realising their strategy of leading acompatible group of
medium-sized companies for process machine and plant building. Their capabilities in todays highly
competitive markets, particularly the important Asian ones, are thereby decisively strengthened and
optimised. Stefan K. Kranzbuhler, Chairman of Jagenberg AG, is more convinced than ever that this
is the only way of protecting valuable jobs in Germany, i.e. of earning back their high costs in
the markets of the world.The acquisition of the Kusters Group is a decisive element for achieving a
globally stable size in this very demanding field of work as well as a good balance between
pronounced risks and adequate opportunities.

Press Release Courtesy Of Kusters
August 2005

Performance Fibers Acquires North American Business Of Diolen Idustrial Fibers. Performance Fibers
Holdings, Inc., an affiliate of Sun Capital Partners, Inc., announced today that it has acquired
the North American business of Diolen Industrial Fibers, Inc. The acquisition is a key element of
Performance Fibers global growth strategy and will serve to increase the companys capacity and
distribution of industrial fibers in North America, as well as add fabric capability to the North
American portfolio. The uniting of these two businesses will offer an expansion of high-quality
products and technology to our customers, said Greg Rogowski, president and Chief Executive Officer
of Performance Fibers.We are committed to growing our business for the continued success of our
customers, Rogowski said. Our technology leadership and investments will allow for continuous
improvement of our products, ease the development of new products and applications, and support
continuous R and D investment in this growing marketplace.The North American business of Diolen
Industrial Fibers, Inc. is headquartered in Scottsboro, Ala., where the company has produced
high-tenacity polyester yarns since the early 1970s. It also maintains a fabric converting facility
in Winfield, Ala. Performance Fibers is a leader in the global marketplace and has demonstrated its
commitment to investment in North America with this acquisition, said Lowell Bivens, former
President and General Manager of Diolen Industrial Fibers, Inc.The combination of Performance
Fibers business experience and Diolens technological capabilities will create a strategic alliance
to help customers meet challenges and solve problems, Rogowski said. With a global presence,
technological strength and mastery in the fibers and fabric business, the company has positioned
itself for tremendous growth in the future.We are anxious to leverage the talented management team
at Performance Fibers, said Matthew Garff, Vice President at Sun Capital Partners, Inc. The
management team has worked hard to grow the business by meeting the needs of their customers and
working well with their vendors. We expect that this same level of diligence will be applied to
customers and vendors of Diolen, allowing the combined business to grow and prosper.

Press Release Courtesy of Performance Fibers
August 2005