Avondale Chairman, PresidentandCEO G. Stephen Felker accepts the Textile World 2002 Innovation
Award from Textile World Chairman Douglas C. Billian.Textile World Magazine presented Avondale
Mills, Inc. with the 2002 Innovation Award on Friday, June 28th, at an awards luncheon held at the
Cherokee TownandCountry Club in Atlanta.Executives were on hand from Avondale Mills; American
Savio; Elbit Vision Systems; DyStar; Ford, TrimbleandAssociates Inc.; HSGM Inc.; Noveon; Picanol of
America Inc.; R.L. Stowe Mills Inc.; Rieter; Savio; Steel Heddle; Sulzer Textile; and Zima Corp.,
as well as the Textile Industries Media Group. G. Stephen Felker, chairman, president and CEO
of Avondale Mills, accepted the award on behalf of the company.

First Quarter Challenging For Apparel GroupsFirst-quarter sales results indicate that apparel
groups have challenges to face in the coming months. Downturn in retail and consumer demand for
apparel has left many companies wondering what the next few quarters will bring.Kellwood Co., St.
Louis, reported a 19.6-percent decrease to $570.7 million in sales for the quarter, compared with
$709.4 million in 2001. Net earnings for the company were $8.6 million, down from $25.1 million
last year.First-quarter mens sportswear increased 9 percent over year-ago levels. Womens sportswear
was 25 percent lower, while sales of other soft goods were down 17 percent.Hal J. Upbin, chairman,
president and CEO, said, While sell-through rates of our products at retail have been encouraging
this Spring, the improvement in turnover and margins for the retailers has not yet translated to a
fundamental change in our customers ordering mentality for Fall. Orders are being booked 45 to 60
days later than normal.New York City-based J. Crew Group Inc. also reported a slight downturn in
revenues for the quarter, with $167.1 million, down from $167.8 million. Comparable store sales
decreased 13 percent.Our first quarter results primarily reflect the continuing challenges we are
facing on the merchandising front. Comp store sales came in as we anticipated, while EBItdA before
severance charges exceeded our expectations, reflecting higher merchandise margins versus last
year, said Scott Rosen, CFO.The company reported a loss of $453,000 before interest, taxes,
depreciation and amoritization (EBItdA), compared to income of $150,000 last year.
July 2002

Burlington ReorganizationBrings ChangesAs part of Burlington Industries Inc.s reorganization under
Chapter 11 of the U.S. Bankruptcy Code, the Greensboro, N.C.-based company has sold its residential
upholstery business and its bath consumer products assets.Bacova Guild Ltd., High Point, N.C., a
subsidiary of Ronile Inc., has acquired Burlingtons bath consumer products assets. The new business
will operate as a division of Bacova, and will sell under the Bacova® Bath and other brand
names.Tietex International Ltd., Spartanburg, has purchased Burlingtons residential upholstery
fabric business. The acquisition includes Burlingtons Sheffield facility in Rocky Mount, N.C.
Tietex expects to employ the majority of Sheffield employees.Tietex also plans to lease a portion
of the weave capacity at Burlingtons Williamsburg plant in Matkins, N.C. Employees associated with
upholstery production will be employed by Tietex.Tietex will use the Burlington House® brand name
for upholstery fabrics.Springs Industries Inc., Fort Mill, S.C., has completed its acquisition of
Burlingtons window treatments and bedding consumer products business (See Textile World News, April
2002). The purchase includes a manufacturing plant in Mexico. Springs also has received a license
to use the Burlington House® and American Lifestyle® brand names. In addition, Burlington will
supply finished products manufactured at its Reidsville and Stokesdale, N.C., facilities, as well
as fabrics to be converted by Springs into finished products.
July 2002

Springs Nominated As Star SiteSprings Industries window fashion facilities in Montgomery, Pa., have
been nominated as a Star Site under the Voluntary Protection Program (VPP), administered by the
U.S. Department of Labors Occupational Safety and Health Administration (OSHA).The program awards
facilities that monitor, measure and improve workplace safety. Out of 7 million worksites
nationwide, only 850 have qualified as VPP sites; Star Sites have about half as many injuries as
their industry counterparts.
July 2002

PGI Accesses DIP FacilityPolymer Group Inc. (PGI), North Charleston, S.C., and 20 of its U.S.
subsidiaries have filed for pre-negotiated reorganization under Chapter 11 of the U.S. Bankruptcy
Code.PGIs international operations and joint ventures are excluded from the filing.With the backing
of its bank group and the holder of more than two-thirds of its outstanding bonds, PGI hopes to
eliminate more than $550 million of debt. The company expects to complete reorganization by the
third quarter 2002.We expect that the restructuring process will generally have no impact on the
companys ability to fulfill its obligations to its customers and employees, said Jerry Zucker,
chairman, president and CEO. We fully expect that our vendors and customers will support the steps
taken today as part of our program to adjust our capital structure and strengthen the companys
position for the future.As part of the filing, PGI has received approval from the U.S. Bankruptcy
Court to access a $125 million debtor-in-possession (DIP) facility, arranged by JP Morgan Chase,
which will be used to fund operating expenses and to meet employee and supplier obligations.The
company already has received court approval to continue to pay employee wages and benefits, to pay
suppliers for delivery of goods and services, and to continue ordinary customer programs and
practices.
July 2002