Unifi Inc., Greensboro, N.C., has agreed to acquire the Kinston, N.C.-based polyester filament
manufacturing assets of INVISTA Inc., Wichita, Kan., for a sum of approximately $21 million,
subject to a final inventory evaluation. The acquisition of other Invista polyester assets also is
under consideration by Unifi.

The agreement also includes the termination of a manufacturing alliance between the two
companies that was formed in June 2000, and all related agreements.

The acquisition, expected to be completed during this quarter, will integrate polymer
spinning into Unifi’s operations. The Kinston facility employs approximately 775 people and
currently generates annual sales of approximately $300 million, including sales to Unifi totaling
$200 million. “This transaction enables Unifi to better serve the US market, while at the same time
strengthening the company on a long-term basis,” said Brian Parke, chairman and CEO, Unifi. “We are
pleased to have come to an agreement with our alliance partners in this difficult market, as we
will be in a better position to compete with imports from abroad as a result.”

“Our first priority will be to streamline the product mix and production lines between
Kinston and our existing domestic polyester operations to optimize capacity to fit the market,”
said Bill Lowe, COO and CFO, Unifi. He said the company expects full integration will take nine
months to a year and noted that Kinston is currently underperforming.

According to Gerold Linzbach, president, Invista Textile Fibers, Charlotte, which currently
operates the Kinston plant, the facility has been struggling to stay competitive and would have
closed if Unifi had not agreed to purchase it. “This transaction is a more positive outcome for our
employees, the community of Kinston and our customers,” he said.

In other Unifi news, the company plans to reorganize its European operations as of November
2004 to focus on sales, service and distribution of its textured yarn. Unifi will close its
Ireland-based Unifi Textured Yarns Europe manufacturing operations at the end of October, and
thereafter will sell yarns produced in the United States and through Unifi Asia to its European
customers. The company cited continuing unprofitability at the Ireland plant, with little hope of
reversing that trend. The closure affects approximately 300 employees. According to Lowe, the
European reorganization will have no significant impact on the company’s US operations.

September 2004

Monarch Knitting Machinery Corp., through its subsidiary Monarch Machinery LLC, has acquired
Trustfin a.s., located in the Czech Republic. Trustfin’s largest holding is Uniplet, the Czech
manufacturer of hosiery knitting machinery and the Charlotte line of seamless knitting machinery.
Uniplet, founded in 1949, is renowned for its Ange line of sports sock machines, as well as its
men’s Dera and women’s Edis hosiery machinery models. Monarch first became involved with
Trustfin/Uniplet in a joint venture to build seamless body size machines. Circumstances put Monarch
in a position to acquire the Czech companies. Bruce Pernick, president of Monarch, was impressed
with the level of technology and know-how at Uniplet, as well as the proactive and sophisticated
marketing and administration at Trustfin. Pernick also recognized the synergy that could exist
between its Vanguard division and Uniplet. Now that Trustfin/Uniplet has a solid company like
Monarch behind it, Pernick is confident that its current customers will feel reassured, and new
customers will have the confidence to consider Uniplet a very viable alternative.



Press release courtesy of Monarch Knitting Machinery Corp.

September 2004

Globaltex Inc., Davidson, N.C., has moved its entire production operation from Mexico to
Martinsville, Va., to take advantage of shortened lead times and proximity to its suppliers and
customers. Founded in 1994 as a manufacturer of chenille yarns for US upholstery fabric
manufacturers, the company benefited from the North American Free Trade Agreement (NAFTA) by using
US-supplied polypropylene, acrylic and polyester to produce the yarns in its factory in Mexico.
Early this year, it opened a facility in Martinsville, taking over a former VF Activewear plant
that had closed the previous year. Globaltex plans to invest more than $5.2 million in its
Martinsville operation over a 30-month period, ultimately employing 154 workers there. It also has
received more than $600,000 in government grants and job training funding.

“We have always bought our materials in the United States, and we are firm believers in NAFTA
because it works both ways,” said Jose Antonio Diaz-Llaneza, president and CEO, Globaltex, “but
being closer to our suppliers and customers is a big advantage, and Virginia is a great place to do
business.” He said the company’s polypropylene supplier, Drake Extrusion, is located just two miles
from the new plant. “We have reduced our lead times from five weeks to three, and to just one week
if there’s an emergency,” he added.

“The availability of experienced textile workers from VF Activewear and Pillowtex [which went
out of business last year] also has helped us a great deal,” he said, “as has all the help from the
Commonwealth of Virginia with training.”

Diaz-Llaneza said Globaltex is proceeding on schedule with its US plan, and expects its
workforce to total more than 50 by early September. The plant in Mexico is now closed, and its
machinery and equipment are being installed at the Martinsville plant.

September 2004

Greensboro, N.C.-based International Textile Group (ITG) has selected Italy-based Porini S.r.l.’s
Extended Enterprise Resource Planning (EERP) solution to manage its operations. The solution
includes: G-TeX for sales support, order management, production management, purchasing and
distribution; visual planning and scheduling tools for production capacity and resource utilization
optimization; and the Collection Development System for product development calendar, product data
management/product specification and costing management.

“The inherent flexibility of [Porini’s] systems will enable us to operate each business unit
with the appropriate tools, on a common application platform,” said Barbara Sorkin, vice president
and chief information officer, ITG. “Furthermore, we have found Porinis spirit of collaboration and
partnership a great fit for us as we focus on distinguishing our business in new and innovative
ways.
”

September 2004