Dan River To Sell Engineered Products Division

Dan River Inc., Danville, Va., has entered into an agreement to sell the assets of its
Porterdale, Ga.-based Engineered Products Division to Porterdale Acquisition LLC for $9.37 million.
The prospective buyer is an affiliate of Hogansville, Ga.-based Industrial Specialty Fabrics Inc.
and Thomaston, Ga.-based Royal Cord Inc. – producers of yarns and fabrics for the rubber goods
market.

Bob Major, the division’s president, called the proposed acquisition a very positive development
for Dan River’s Engineered Products business.

The transaction is contingent upon an auction process, with final approval expected at a
bankruptcy court hearing January 11.

January 2005

Quality Fabric Of The Month: Responsive Protection

The FiberComposites Division of Ahlstrom Corp., Finland — in collaboration with Cardinal Health Inc., Dublin, Ohio — has developed a fabric for single-use medical gowns that it says provides the maximum available level of protection against contagious viruses, as well as a high degree of comfort and breathability. The Breathable Viral Barrier (BVB) fabric answers a need for improved protection as specified in new standards being developed for single-use medical fabrics by industry groups in the United States, the European Union and elsewhere.

The three-layered BVB fabric has at its heart a monolithic, impervious membrane that increases the rate of moisture transfer in proportional response to the wearer’s rising body temperature in situations — such as during surgery — where stress can and does run high. The membrane is enclosed between two spunbond fabrics made with continuous fine polypropylene filaments — an inner fabric treated to make it soft and comfortable and an outer one treated to give it additional strength and repellency.

qfom_Copy_18Cardinal Health’s SmartGown™ surgical gown is made with Ahlstrom’s BVB fabric featuring a monolithic, impervious membrane sandwiched between two microfiber spunbond layers.
According to Jerome Barrillon, global marketing and communications manager in Ahlstrom’s Windsor Locks, Conn., office, “monolithic” refers to Ahlstrom’s proprietary technology for producing the membrane. “It’s a different way of casting the film that allows water vapor to diffuse through the polymer film, while at the same time the membrane forms a total viral barrier,” he explained. The molecular diffusion helps the wearer stay comfortable and dry, but the membrane is impenetrable by infectious fluid-borne viruses.

Barrillon said the membrane conforms to the ASTM F1671 standard for resistance to viral penetration, and — according to ratings established by the Association for the Advancement of Medical Instrumentation (AAMI), Arlington, Va. — achieves AAMI Level 4, the highest degree of protection, compared with conventional protective barrier fabrics that use microporous films. “There’s no guarantee that viruses won’t go through microporous films,” he said, explaining that such films have microscopic holes that are not of a uniform size, and viruses may be able to penetrate them to some degree. He added that Ahlstrom has conducted tests to visually demonstrate the efficacy of its BVB fabric, even when pressure or other such impacts are applied.

Cardinal Health uses Ahlstrom’s BVB fabric in its SmartGown™ surgical gown. The gown has an additional protective benefit in that the main seams on the sleeves are sealed using Cardinal’s proprietary technology that creates an impervious bond and enables SmartGown to achieve AAMI Level4 in terms of both material and construction. The company says the gown meets the AAMI standard while also delivering “a high level of clinician comfort.”

For more information about Ahlstrom’s BVB fabric, contact Jerome Barrillon (860) 654-8607,
www.viralbarrier.com.

 

January 2005

South American Textile Showcase


T
 he land of the sultry samba and booming bossa nova will welcome the world of textiles
next month when the International Textile Machinery Trade Fair (ITMEX Americas) opens its doors on
Monday, February 21. After an extensive global marketing and promotional campaign by organizers,
more than 600 international exhibitors and more than 25,000 visitors are expected to converge on
the 100,000-square-meter Ahnembi Park Exhibition and Conference Hall complex, located close to
downtown Sao Paulo, Brazil, on the right bank of the Tietiver.

The five-day event will run concurrently with TexBrasil Fenatec International Textile Trade
Fair, NTandTT (nonwoven and technical textiles), Feimaco (sewing machines) and Expolave (laundry
machines and services). It promises to offer attendees and exhibitors an opportunity to increase
market penetration both in Brazil and globally, expand brand visibility, meet prospective clients;
and see the latest in cutting-edge technology in equipment, machinery and industry processes
developed to meet the needs of the global textile market.

According to organizer Alcantara Machado, a trade show promotion company headquartered in Sao
Paulo, ITMEX Americas is the largest of its kind in Latin America. A variety of machinery sectors
will be represented including preparation, spinning, weaving, knitting, finishing, cutting and
sewing, laboratory, computer-aided design and computer-aided manufacturing, parts and accessories,
and other services and trade publications.


The Brazilian Market: On The Upswing

Brazil is the largest country in South America, taking up nearly half the continent. It boasts
more than 5,500 cities and is considered a leading world economy. This Portuguese-speaking country
knows how to pull itself up by the bootstraps and become an innovative powerhouse – its
current president, Luiz Inacio Lula da Silva, is a former shoeshine boy and metal worker; and the
country recently celebrated the launch of its first rocket into space. Brazil also boasts
impressive economic figures. According to ITMEX organizers, the country generates $60 billion
annually in foreign trade, equal to the amount of its foreign exchange reserve. It ranks sixth in
global production of machinery and equipment, and seventh in global services output; and is the
world’s eighth-largest consumer of energy and steel, and the ninth-largest auto manufacturer, with
20 million vehicles currently in use. Brazil also is home to 225 of the 500 largest Latin American
businesses. Such figures should encourage purchasing decision-makers who plan to attend ITMEX
Americas.

Alcantaro Machado expects this year’s edition of ITMEX Americas, which is held every four years,
will be a success for everyone involved.

“We are quite confident that this event will be held at the very moment that the Brazilian
textile and garment manufacturing industries will be experiencing an excellent phase with a clear
indication that exports for these two sectors will also be on the up-trend,” said Evaristo
Nascimento, director, ITMEX.

Nascimento’s confidence is echoed in statistics released by the Brazilian Association of the
Machines and Equipment Industry – an official supporter of ITMEX Americas. The statistics document
the recent overall production and sales growth for the textile and apparel sectors. The association
stated that Brazilian manufacturers generated a turnover of $6.7 billion during the first half of
last year. Apparent consumption production plus imports, minus exports equaled $6.9 billion, a
15.2-percent growth compared to the first quarter of 2003.

Information released by Global Invest, a consultancy, also seems to confirm that the Brazilian
textile and apparel markets are on the upswing. According to the firm, Brazil’s industrial sector
grew 7.7 percent in the first six months of 2004 compared to the same period a year earlier. The
firm also reports this represented the best first-semester result since 1995, and resulted in a
readjustment to 3.2 percent of the country’s economic growth last year. Industrial production also
grew, marking a growth of 13 percent in June over the same period in 2003.

Sao Paulo is the worlds third-largest city, and accounts for 32 percent of South America’s
economy.


The City Of Sao Paulo

Sao Paulo, the world’s third-largest city with a population of more than 15 million, accounts
for 32 percent of the South American economy and more than 40 percent of Brazil’s gross domestic
product, according to show organizers. It is considered the main gateway to a large consumer market
and is at the heart of the Mercosur trading region, which also includes Argentina, Paraguay and
Uruguay.

Visitors to Sao Paulo will find scattered throughout the city a number of markets that offer a
variety of items and produce. Vendors at the Mercado Municipal, open Monday through Saturday, sell
Brazilian and imported cheeses, fruits and vegetables, among other sundries. Vendors on Rua
Direita, Rua Sao Bento, Rua Baron de Itapetininga and Rua 24 de Maio offer items of every
description during weekday business hours.

The city offers a number of parks, including the Parque da Luz botanical garden, Parque Tenente
Siqueira Campos and Parque do Ibirapuera – the location of Sao Paulo’s Modern and Contemporary
Art museums, Ibirapuera planetarium, Japanese Pavilion and Monumento Baneiras.

Breathtaking views can be seen from the Santa Ifiga Viaduct, which looks out over the city’s old
downtown. The view from the 35th-floor observation deck of the Banespa Tower is similarly striking,
and free of charge. Other attractions include the Po do Colegio, the site of the city’s founding by
Jesuit priests, who built a school at this spot with the aid of the native Guarani people.

For more information about ITMEX Americas, contact Alcantara Machado 11 3291 9111; fax 11 3291
9110; info@alcantara.com.br;
www.itmex.com.br.

January 2005

Picanol Announces Resignations

Patrick Steverlynck and Jan Coene recently resigned as chairman and CEO, respectively, of
Belgium-based weaving machine manufacturer Picanol NV. The company’s Board of Directors has
appointed Luc Van Nevel, an independent director of the company and chairman of the Audit
Committee, as interim chairman and CEO. The resignations came in the wake of disclosure of details
in Coene’s remuneration package that had not been communicated originally to the company’s
corporate bodies and committees. The details include a sign-up fee paid in shares of Picanol stock.
During Coene’s three-year tenure as CEO, the company’s value tripled, and its stock underwent a
1:40 split, thus increasing significantly the value of of his sign-up bonus. Upon his resignation,
Coene agreed to return the bonus, worth 6.6 million euros gross, to Picanol. Steverlynck continues
to serve the company as a director and vice chairman. He and A. Michielsen, chairman of the
Nomination Committee, are assisting Van Nevel in the recruitment of a new CEO.

“The Board of Directors of Picanol NV has faith in the future of the company,” Picanol stated in
a press release announcing the resignations. “Jan Coene has indeed built a strong management team
and provided the company with a healthy financial structure and organization. The company thanks
Jan Coene for his efforts and commitment, and wishes him all the best in his future career.”
Picanol also stated a recent review of its books shows they have been kept correctly over the past
years.

January 2005

Syscom Introduces AmberStrand Fiber

Syscom Technology Inc., Columbus, Ohio, has developed a metalized polymer fiber for use in
electrotextile applications including aerospace, military, sports, miniature electronic and
healthcare instrumentation.

AmberStrand is produced using a patented process in which Japan-based Toyobo Corp.’s Zylon® poly
(p-phenylene benzobisoxazole) (PBO) fiber is metal-coated. According to Syscom, AmberStrand offers
lighter weight; and greater flexibility, mechanical strength and durability than conventional
conductive metal wires; as well as customizable electrical conductivity.

Cross section of Syscom Technologys AmberStrand metalized PBO fiber

Syscom received funding to develop AmberStrand from the Air Force Research Laboratory, Missile
Defense Agency, Office of Naval Research, National Aeronautics and Space Administration, and
private investors.

“Initial customer receptivity is unusually strong, and the product will enable novel and
surprising applications ,” said Jar-Wha Lee, Ph.D., Syscom’s founder.

January 2005

Jones Apparel Finalizes Barneys Acquisition

Jones Apparel Group Inc. and Barneys New York Inc., both based in New York City, have finalized a
merger agreement worth nearly $400 million, including cash consideration of $19 per share to
Barneys’ stockholders totaling $291.3 million. Barneys Chairman, President and CEO Howard Socol
will continue to lead the company, and also will lead an expansion effort currently underway.

January 2005

Mohawk To Expand SC Yarn Operations

Calhoun, Ga.-based floor covering manufacturer Mohawk Industries Inc. plans to build a new yarn
manufacturing plant near Bennettsville, S.C. The new plant will be built on land bordering Mohawk’s
Oak River yarn plant and will complement that operation, which produces more than 50 million pounds
of spun and filament fiber per year. The expansion, projected for completion by the end of this
year, is expected to generate approximately 300 new jobs.

“This is a tremendous community of hard working, conscientious people, and we look forward to
welcoming more of them into the Mohawk family,” said Jerry Hendrix, director of human resources,
Yarn Division.

January 2005

Warnaco Selects SAP’s ERP Solution

Warnaco SelectsSAP’s ERP Solution

January 2005

Propex Finalizes AFFC Purchase

Propex Fabrics Inc., Austell, Ga., a subsidiary of Propex Fabrics Holdings Inc. (formerly AFFC Holdings Inc.), has completed its acquisition of Amoco Fabrics and Fibers
(AFFC), a subsidiary of BP, London, for an undisclosed price.

The acquisition was sponsored by an investment group comprised of Laminar Direct Capital LP,
Genstar Capital LP and The Sterling Group LP. Propex Fabrics will operate as an independent
company, producing primary and secondary carpet backing; and man-made fabrics used in bedding,
furniture, automotive, geotextile and other industrial fabric applications.

AFFC management will play a significant role in the ownership of Propex.

January 2005

M M Newman Unveils Hot Tool HK60 Hot Knife

M.M. Newman Corp., Marblehead, Mass., says its heavy-duty Hot Tool HK60 Hot Knife is suitable for
cutting and sealing man-made materials such as Dacron®, Friskit®, Mylar®, Nylon® and Pellon® in a
variety of thicknesses. According to the company, the HK60’s double-edged blade tip heats up to
1,050°F in less than two minutes, and can be adjusted down to 150°F when used with M.M. Newman’s
Dial-Temp compact, portable temperature controller. The knife tips measure 0.06 inch in thickness
and can be resharpened.

January 2005

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