Glenoit Fabrics Looks AheadNew York City-based Glenoit Fabrics (H.G.) Corp., formerly the sliver
knit pile fabric division of Glenoit Corp., is forming new supplier relationships, as well as
strategies to increase its global market share for pile fabrics.The company is now the North
American division of the China-based Haixin Group International Ltd., also a manufacturer of pile
fabrics. Haixin purchased the division from Glenoit Corp. earlier this year.Glenoit is working with
suppliers of acrylic and modacrylic fiber and raw materials including Germany-based Dralon and
Japan-based Mitsubishi, Kaneka and Mitsui to develop new fibers for Glenoit to use in its
fabrics.The company also is looking into new markets. Glenoit and Haixin pile fabrics currently
comprise approximately 25 percent of global production of these fabrics.Our manufacturing
flexibility allows us and our customers a range of economic, geographic and logistical advantages,
said Larry Levine, president and COO, Glenoit Fabrics. The company can supply fabric from its U.S.
and Canadian mills and from Haixins mills in China, as well as provide complete manufacturing
services as needed.
October 2002

Guilford Mills, Inc. announced that its previously-confirmed plan of reorganization became
effective today (October 4, 2002). The announcement marks the Company’s swift emergence from
bankruptcy proceedings, which commenced only 6 1/2 months ago.The bankruptcy court had approved
Guilford Mills’ reorganization plan on September 19, 2002, after the Company’s creditors and
stockholders had voted overwhelmingly to accept it.Emerging from bankruptcy, Guilford Mills now has
senior debt of approximately $145 million, down from $270 million when it entered the proceedings.
The senior debt consists primarily of a three-year revolving credit facility and a three-year term
loan. The Company’s suppliers are being paid in full. Guilford Mills’ senior lenders now own 90% of
the Company’s equity.”I spent a few days after the court’s September 19 approval visiting with many
of our 3,500 associates, thanking them for their tireless efforts to bring this reorganization to a
successful conclusion,” said John A. Emrich, Guilford Mills’ President and Chief Executive Officer.
“I saw a work force that is fired up and ready to take on the world. I’m very excited about what
we’re going to accomplish over the next year.”Today, the effective date of the reorganization plan,
all shares of Guilford Mills’ existing common stock (“Old Common Stock”), will be cancelled, and
the Company will issue its new common stock (“New Common Stock”): 90% to its senior lenders and 10%
to its existing common stockholders pro rata.The record date under the plan of reorganization for
determining the existing common stockholders who are entitled to receive shares of New Common Stock
is the close of business on October 3, 2002. After the record date, the Company is not required to
recognize or process any further changes in the holders of Old Common Stock.Shares of New Common
Stock will be issued to record holders at a ratio of approximately one (1) share of New Common
Stock for every 34.776338 shares of Old Common Stock. No fractional shares of New Common Stock, or
cash in lieu thereof, will be issued to a holder. Instead, fractions of one-half or greater will be
rounded to the next higher whole number and fractions of less than one-half will be rounded to the
next lower whole number. All shares of Old Common Stock will be automatically cancelled.The
issuance and distribution of shares of New Common Stock, which will be processed by the Company’s
transfer agent, American Stock TransferandTrust Company, will take place as soon as possible.
Shareholders need not return their Old Common Stock certificates or take any other actions in order
to receive shares of New Common Stock. The Company expects that there will be approximately 5.5
million shares of New Common Stock outstanding immediately following the issuance under the plan of
reorganization.New Common Stock will be quoted on the OTC Bulletin Board (“OTCBB”) initially under
a new ticker symbol “GMILV,” and within several days, the symbol will change to “GMIL.” The Old
Common Stock will cease to be quoted.Guilford Mills and its domestic subsidiaries filed voluntary
petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on March 13, 2002. The
Company had exited several businesses over the previous year to focus on its strongest operations:
automotive, technical textiles and select apparel businesses. The bankruptcy reorganization allowed
Guilford Mills to reduce its debt to a level more appropriate for its new size.Copyright PR
Newswire 2002

Fire Damages TextileRubberandChemical FacilityAn overnight fire Sept. 12 at a facility belonging to
Textile RubberandChemical Co., Dalton, Ga., has temporarily closed down the companys operations at
that location. The cause of the fire has not been determined.While fire damage was confined to
Textile Rubbers commission coating operation, the building also sustained water and smoke damage in
areas housing a polyurethane research laboratory and offices.The company has moved the affected
operations and employees to other locations in Dalton. We are fortunate in that not one employee
has had to lose a day of work and that our customers can continue to be served with few
interruptions, said a company spokesperson. The company also expressed gratitude for the efforts
and help from area fire and police departments, the Red Cross and local businesses.Textile Rubber
plans to rebuild the damaged building as quickly as possible.
October 2002

KTA, NTA To MergeTo Form National Textile AssociationThe membership of the Knitted Textile
Association (KTA), New York City, and the Board of Directors of the Boston-based Northern Textile
Association (NTA) recently announced plans to merge the two entities to form the National Textile
Association. The membership of NTA is expected to ratify the merger at its annual meeting in late
September.Karl Spilhaus will preside over the new association. Spilhaus has headed the NTA since
1979.John Emrich, KTA president and president and CEO of Guilford Mills Inc., Greensboro, N.C.,
fully supported the decision.The National Textile Association, to be located in Boston, will hold
its 2003 annual meeting at a yet-to-be-announced location in the South. Subsequent meetings will
alternate between the North and the South. The new entity will represent approximately 175
companies.The merger is supported by Roger Milliken, CEO, MillikenandCompany, Spartanburg, who
stated, Two hard working groups have joined to form one strong effective voice for the American
textile industry.Noting the new association will have membership in 31 states, Jonathan Stevens,
president, Ames Textile Corp., Lowell, Mass., also voiced support for consolidation.
September 2002

VF Posts Net IncomeGain Of 28 PercentGreensboro, N.C.-based VF Corp. reported second-quarter 2002
net income increased 28 percent to $88.9 million, up from $69.4 million for the second quarter
2001. Record earnings of 79 cents per share for the quarter compared with 60 cents for the second
quarter 2001. VF credits the improved earnings to the success of its strategic repositioning
program announced in late 2001
(See News, TW, January 2002). The higher earnings contrasted with lower sales, down 10
percent to $1,193.5 million from $1,323.0 million for the second quarter 2001. The decline reflects
a soft retail apparel market and the companys exit from nonstrategic businesses, according to VF.
September 2002

The China State Development Planning Committee has established that Chinas textile industry
should pursue the worlds technical development by increasing technical progress and industrial
upgrading. As part of its 10th five-year plan, the goals, broken down by industry segment, are as
follows:Cotton Industry:Continue to move from shuttle looms to weaving machines.Enhance the share
of new technologies, such as blowing-carding units, combers and shuttleless looms.Sixty percent of
the spinning machines should reach the 1990s international level, as well as 30 percent of the
combers, 50 percent of knot-free and fine-count yarn, and 40 percent shuttleless cloth.Wool
Industry:Continue to replace old wool spindles. Actively employ new techniques such as bicomponent
and wrap spinning.Multiply materials to increase variety.Develop high-count yarns and lightweight
products, and increase the share of high-rank fabrics to 70 percent for the purpose of expanded
exports.Linen Industry:Optimize the existing linen-processing capacity.Stress the development of
degumming of ramie; combing; draft-zone spinning; dyeing, printing and finishing techniques; and
technologies for evenness, colorfastness and brilliance of textile strands.Improve the convenience
of apparel and expand the usage in garment and household textiles.Silk Industry:Replace the old
production capacity of silk reeling, silk spinning and silk weaving; and accelerate the technical
reform of existing equipment. Develop a new silk composite fiber with real silk as a main factor.
Realize the serialization of silk-content material. Develop high-level real silk products.Enhance
the level of finishing techniques such as shrink-proof and anti-crease. Develop chemical silk-like
products.Develop silk products of blended spinning, interlacing and cross doubling.Fully
demonstrate the softness, prettiness and comfort; and wholly promote the quality of silk
fabrics.Knitting Industry:Emphasize increasing the share of large-diameter circular knitting
machines. Enhance the design capacity for new products. Stress the development of new materials and
the application of environmental fibers. Develop health-giving knitted fabrics, knitted outerwear,
high-grade knitted underwear, and high-grade warp-knitted fabrics.Expand the export of knitted
fabrics.Chemical Fiber And Chemical Fiber Material Industries:Differential rate of chemical fiber
in 2005 should amount to 40 percent; and the big enterprise of annual output of more than 100
thousand tons should make a proportion of about 60 percent in terms of production capacity. Build
several bases of chemical fiber and material production. Construct effective connections between
upstream and downstream. Form a processing vertical system from material, laddering to finishing
for the purpose of enhancing risk-tolerance. Emphasize the development of new materials, such as
xylene formate, glycol, caprolactam and acrylonitrile. Actively develop new varieties of synthetic
fiber and expand their application field. Stress the development of functional fibers, differential
fibers and compound fibers in the development, production and application of a new generation of
multifunctional, high artificial, fine-denier and blended filaments as represented by polyester
filament. Promote the production of silk-like and wool-like fabrics, which have the characteristics
of new synthetic fibers. Highlight the development of new types of antistatic,
high-moisture-absorbent, high anti-pilling tendency and flame-retardant fibers. Actively research
and develop new solvent spinning process for cellulose fiber. Speed up the application of viscose
environmental technology.Adopt environment-protecting measures in the treatment of three wastes of
viscose and the treatment of pulping water.Industrial Textile Industry:Actively develop industrial
textiles based on demand. Make industrial textiles the new developing point of industry and develop
tent fabric, cultivation base, geotextiles, medical textiles, industrial textiles, construction
textiles, environmental fabric, lagging material, packing material, skeleton material and car
upholstery material.Textile Machinery Industry: Spare no efforts to launch 40 machinery development
projects in chemical fiber, spinning, weaving, knitting, and dyeing and finishing sectors, in order
to meet the need for industrial upgrading and equipment updating. Research and develop large,
abbreviated and serialized equipment for polyester, polyester fiber, acrylic fiber, urethane
elastic fiber and viscose. Develop new generation of blowing-carding units, combing machines,
spinning-winding units and spinning machines. Enhance the technical level and liability of
auto-winders and shuttleless looms develop their serial products and their auxiliaries.Research and
develop a new generation of electronic jacquard circular weft-knitting machines, warp-knitting
machines and computer flat-knitting machines. Develop a new generation of machines for predyeing
and printing treatments, dyeing, printing and finishing.Broadly use electronic technology.Dyeing,
Printing And Finishing Industry:Continue reforming the technology because printing, dyeing and
finishing directly influence color, hand and style.While introducing foreign technologies, also
develop our own technologies and intellectual property. The technology, technique, equipment,
dyeing and printing stuff and aids will develop accordingly along sectors of spinning, weaving,
dyeing and garment.Raise the level of technologies for natural fiber finishing; artificial chemical
fiber dyeing and finishing; blended and compound fiber dyeing and finishing; enzymatic finishing;
clean processing; laser lignette; and non-stencil dyeing, finishing and printing.Develop
high-value-added products and environmental products. The share of high-grade fabrics will reach 60
percent at the time, which will satisfy the need for garment industry and export.Garment
Industry:Optimize the capacity of garment processing. Well associate garment processing with
designing and fashion tracing. Associate production with marketing. Actively adopt the strategy of
brand and increase the profile of Chinese brands in domestic and international markets.Pay more
attention to the development of well-known brands of clothing, especially for children, the
elderly, the middle-aged and special usage.Research and develop environmental, health-giving
clothing and clothing for rural areas, for the purpose of satisfying multilevel demand of the
domestic market and also to expand export.
Source: CITME Organizing Committee

September 2002