Joan Velvets AdoptsAF and Y’s Marquesa PlushJoan Velvets, Hickory, N.C., has adopted Marquesa Plush
olefin yarn from Chapel Hill, N.C.-based American FibersandYarns (AF and Y) for use in a new line
of velvet fabrics for transportation and commercial furniture applications. The new fabrics were
shown on furniture manufactured by a number of Joan Velvets customers at the 2003 International
Furnishings Market in High Point, N.C.The Marquesa Plush yarn matched Joan Velvets requested
specifications for unrivaled softness, aesthetics, color and design for this new yarn made for the
residential furnishings market segment, said Michael Apperson, CEO, AF and Y. Weve always known
about the excellent performance and durability properties of olefins. Now to find it with
acrylic-like aesthetics is such an added bonus, said Robb Tomlin, vice president, merchandising,
Joan Velvets. In addition, he said, Marquesa Plush is very easy to clean and resists staining.
June 2003

2003 Innovation AwardBy Janet Bealer Rodie,Assistant EditorClose To The
Customer
Springs delivers value through strong customer relationships, offering a broad range of
products and brands.While Springs Industries Inc., Fort Mill, S.C., has a long history of
product innovation, the companys marketing and brand strategies also have helped propel it to its
current position as a leader in the soft goods home furnishings market, which comprises bedding,
bath, floor and window products. Leveraging acquisition and licensing opportunities to build up its
traditional product offerings and to bring new products into its line-up, the company has
positioned itself at the center of this important textile sector. Springs offers products in every
category of this market, as well as complementary non-textile home fashion products. No other
company in this sector offers such a broad spectrum of goods. The soft goods home furnishings
market has seen steady growth over the past several years, with anticipation of continued growth
into the future. In 2002, US consumption within this market totaled more than $15.8 billion across
all categories. The markets 3.67-percent annual growth rate from 1997 to 2002 is expected to slow
slightly over the next five years to 3.3 percent, still a respectable rate, especially considering
the roller-coaster economy and other uncertainties experienced in recent years.

Springs offers bedding products and ensembles for all ages. Examples include Egyptian cotton
sheets (right) and the Lullaby Ark baby bedding ensemble (above).

In part, Springs success lies in building strong relationships with its retail customers to
help them compete with differentiated products.Retailers drive our business, said Crandall Close
Bowles, chairman and CEO. They get involved today in everything from yarn type to yarn count, to
construction and finishing; and in product development and product design. Color and print are just
the tip of the iceberg. In recent years, Springs customer base, which includes department,
specialty and home improvement stores, has become increasingly dominated by such mass merchandisers
as Wal-Mart, Target and Kmart. Springs develops and produces special collections for all of these
retailers.There is increased demand for product differentiation, Bowles said. Each retailer wants
to be the first and only one to have it.Product Bundling

Springs’ institutional products include Tranquility fleece blankets.Another way the company
delivers value to its customers and to the buying public is through product bundling, which
provides the consumer a convenient shopping alternative. One example of product bundling is the
bed-in-a-bag total bedding package that includes coordinated sheets and top-of-bed articles. In
addition, Springs markets collections of separate products under a single theme, such as Harry
Potter®, which includes childrens sheet sets, towel sets, shower curtains and other products.From
the markets perspective, the most important innovative steps have been in how we bundle entire
groups of products, so were no longer in the towel business, but in the bath shop business, where
were putting things together towels, rugs, shower curtains and accessories, said Tom OConnor,
executive vice president and president, marketing group. Or, with the bedding business, were not
just in sheets, but also in top-of-bed. Ten years ago, we would have been in product businesses,
but not today. To us, thats a way to solve problems for the customer, and its helped us capture
market share.BrandingThe Springs product lines include such well-known brand-names as Wamsutta® and
Springmaid® bed linens and top-of-bed ensembles, blankets, and bath towels and rugs; Regal® accent
rugs; Graber®, Bali® and Nanik® window shades, blinds and accessories; and Dundee® bed and bath
products for the hospitality and institutional markets. The company also markets its products under
licensed brands such as the previously mentioned Harry Potter; as well as Burlington House®,
Waverly, Liz/Villager, Serta, Disney, Coca-Cola, NASCAR and many others.The company recently signed
an agreement with the Egyptian Ministry of Economy and Foreign Trade and the Alexandria Cotton
Exports Association in Egypt to use the Egyptian cotton trademarked logo to promote Springs use of
100-percent Egyptian cotton in its products.

Graber wood blinds are among Springs’ window offerings.

Regal bath coordinates include towels, rugs and accessories.Offering It AllWhether shopping
for bedding, bath or window textiles; accent or area rugs; kitchen and table textiles and
accessories; blankets and throws; fabric-covered lampshades; or decorative pillows, chair pads and
other home fashions made by cut-and-sew companies or offered under licensed brands from a textile
perspective, it seems todays consumer can almost completely dress the home using Springs products.
Where textiles are concerned, one need look to other manufacturers and marketers primarily for
carpet and upholstery fabric. But because Springs also offers non-textile accessories within the
home fashion categories it serves, the consumer may choose the companys wood, aluminum or vinyl
blinds; drapery hardware; shower curtains, ceramic soap dishes and other bath accessories; and
numerous other items to complete the desired looks in various rooms.The consumer also may choose
Springs baby and nursery products, including clothing, layette items, bedding and bath textiles,
blankets and more. And, the home sewer may choose from a variety of Springs fabrics and craft kits
to create unique home fashions and apparel for the family.
June 2003

Russell Increases Sales, Earnings; Adds Spalding BusinessAtlanta-based Russell Corp. reported
first-quarter 2003 sales of $228 million 6 percent higher than first-quarter 2002 sales. Earnings
of 11 cents per diluted share increased 38 percent over year-earlier earnings.The strength of our
brands and the expansion of our athletic business in the retail and team sports channels certainly
contributed to our positive first-quarter results, said Jack Ward, chairman and CEO. In other
company news, Russell signed a $65 million purchase agreement to acquire the brand names,
inventory, contracts and related assets of the sporting goods business of Spalding Sports Worldwide
Inc., Chicopee, Mass.
June 2003

Dan River Announces Two Plant Closings And Lowers Earnings OutlookDan River Inc., Danville, Va.,
announced today it will close two manufacturing facilities in order to rationalize capacity in its
home fashions division. As a result, the company expects to record a pre-tax restructuring charge
in the second quarter of approximately $12 million, about $10 million of which is non-cash.The
company also announced that the continuing weak retail environment and excessive retail inventories
have negatively impacted sales and margins for the first two months of the second quarter. Based on
current projections and including the restructuring charge noted above, the company expects to
report a net loss of about $13 million, or $0.60 per share, for the second fiscal quarter which
ends June 28, 2003. After giving effect to the restructuring charge, the company remains in
covenant compliance under its credit facility, and it maintains ample liquidity.The company plans
to close a home fashions weaving facility located in Greenville, S.C., and a comforter sewing plant
in Fort Valley, Ga., which collectively employ about 630 people. The company expects that the
closures will be substantially completed during the third quarter. The anticipated savings from the
closings of these two facilities is expected to be about $9 million per year. As demand recovers to
more normalized levels, the company plans to transfer production capacity from the closed
facilities to other company facilities in Danville, Va., and Morven, N.C.Mr. Joseph L. Lanier Jr.,
Chairman and CEO, said, “The uncertainty we expressed in our outlook at the end of the first
quarter of 2003 was a reflection of the recent slowdown at retail. This slowdown has since
intensified. Retailers, burdened with excess inventory due to lackluster sales, continue to adjust
inventories by reducing their product intake. The current lull in our sales efforts affords us the
opportunity to make the plant consolidation moves announced today without interruption to customer
service. We will meet future increases in demand by a combination of increased internal production
and outsourcing.””We are thankful to our associates in Fort Valley and Greenville for their many
contributions,” Mr. Lanier continued. “It has been a very difficult decision to close these plants.
We are grateful for their loyal service and their contribution to the company over the years.”Mr.
Lanier closed by saying, “We expect the company’s financial results in the second half of 2003 to
be somewhat of a mirror image of the first half. As the anticipated recovery in the economy occurs,
we should experience a gradual improvement in our results over the last six months of the year.
While our financial results for the remainder of the year may be weaker than originally projected,
we continue to expect to generate free cash flow and reduce debt.”Press Release Courtesy of Dan
River Inc.
June 2003

The “DC” plays a vital role in warehousing and distributing Springs’ finished products.Enter
Springs Industries Grace Complex in Lancaster, S.C., and you enter the heart of Springs bedding
operations. Originally built in 1948 by President Colonel Elliott White Springs, Grace has
undergone several upgrades including five expansions and the addition of a screen printing plant.
Featuring 1.4 million square feet (ft2) of production space, and 590,000 ft2 of warehousing known
in Springs-speak as the DC, Grace Complex employs approximately 2,100 people on three shifts,
working a five- to six-day schedule.Grace Complex incorporates: Grace Finishing Plant including
bleaching, dyeing, printing and finishing; Grace Fabrication housing a Springs cut, sew and packing
operation; and Grace Receiving and Logistics Centers a warehousing and distribution hub for Springs
finished products.The mammoth facility also has on-site power and steam generation, water
filtration and treatment, as well as wastewater treatment.FinishingAs Springs endeavors to
strategically balance domestic manufacturing with foreign sourcing programs, Grace Finishing
receives 60 percent of its fabric from Springs internal production and 40 percent from sourced
greige goods. Processing more than 900 million yards annually, Grace Finishing is a huge consumer
of textile raw materials, going through an estimated $17 million worth of dyes and chemicals
annually to produce and finish bedding fabrics and some apparel fabrics.Automated FabricationThe
Grace Fabrication Plant produces 1.9 million sheets and pillowcases weekly. Sixty percent of
production is focused on sheet sets and bed-in-a-bag products. Receiving finished fabrics from
Grace Finishing, automated sewing systems cut, sew, attach brand and care labels, add trim, cut
corners, sew elastic in fitted sheets and even turn pillowcases inside out and fold the finished
products for packaging. These systems blaze through fabric, converting it into finished product at
the rate of 100 stitches per second. Springs associates focus on quality inspection at multiple
points in the processes, and ensure automated systems perform at peak efficiency.Receiving And
LogisticsThe Grace Receiving facility came on-line in the early 1960s, while Grace Logistics Center
is the latest addition to Grace Complex. Featuring 2.7 million cubic feet of storage capacity,
Grace Logistics shipped more than 12 million cartons in 2002 and maintains an average daily volume
of 48,000 cartons. While typical textile logistics centers handle rolls of fabric, Grace moves
boxes of finished product, ready for Wal-Mart and other customers, over two miles of conveyors,
through automated sorting from inventory to tractor trailers.Our domestic manufacturing base may
actually become more competitive due to increasing service requirements, increased differentiation
and demands on reacting faster, said Crandall Close Bowles, chairman and CEO. As Springs focuses on
the future, Bowles is confident Grace will continue to evolve and meet the companys strategic
goals.

June 2003

Italian Textile Technology
TW Special Report

Textile World and a delegation from the NCSU College of Textiles team up for a look at the
latest in Italian textile technology.The Italian Trade Commission (ITC) and ICE Istituto nazionale
per il Commercio Estero have united 14 leading Italian machinery manufacturers associations in a
new initiative to showcase Italian-made machinery. These 14 associations represent more than 10,000
machinery manufacturers from industry sectors including agricultural/farming, ceramics,
earthmoving, food processing, glass, iron foundry and metallurgy, leather and tanning, marble and
stone, metalworking, packaging, plastics and rubber, printing, graphics and converting, textiles,
and wood.Representing the global textile machinery industry is the Italian Association of Textile
Machinery Producers (ACIMIT), a vital link between Italian textile machinery producers and textile
manufacturers seeking the latest in technology.Flexibility, creativity and innovation are the three
attributes most often cited by Italian equipment manufacturers as a credo for work, according to
ACIMIT.In terms of flexibility, a typical Italian manufacturing company has just 70 employees, with
company owners typically managing day-to-day operations. Quick response is common, and time and
attention are given to developing custom solutions for customers.Creativity not just in food and
fashion is part of the Italian tradition of outside-the-box thinking in design and engineering.
From Leonardo da Vinci to Ferrari, Italians have followed the guiding principle that development
can be achieved only by understanding the real needs of a situation and its intended influence. In
the manufacturing arena, this approach translates into application-specific solutions to meet
customer needs.Ingenuity and innovation thrive within todays Italian manufacturing industry, known
for leadership in machine development, integration and technological advancement.

The NCSU delegation (left to right): Gary Mock, Ph.D., professor, textile engineering,
chemistry and science department; William Oxenham, Ph.D., associate dean for academic programs,
textileandapparel technologyandmanagement (TATM) department; Nancy Powell, associate professor,
TATM; Alex Mussa, assistant trade commissioner, ITC; Abdelfattah Seyam, Ph.D., professor, TATM; and
Behnam Pourdeyhimi, Ph.D., professor, TATM, and co-director, Nonwovens Cooperative Research
CenterThe US ConnectionPast successes, along with US economic growth over the past decade, have
made Italy the fourth-largest foreign supplier of industrial machinery and equipment to the United
States, with exports totaling $1.6 billion in a market worth $20.3 billion.In the textile sector,
Mauro Badanelli, an economist with ACIMIT, reports the value of Italian textile machinery produced
in 2002 amounted to 3.4 billion euros an increase of 5 percent over the previous year, 71 percent
(2.4 billion euros) of which was exported to 130 countries.Italian exports by sector illustrate the
range of equipment available:spinning machines 21 percent;weaving machines 25 percent;knitting and
hosiery machines 22 percent;finishing machines 24 percent; andlaundry, dry cleaning and other
machines 8 percent.Although Europe purchases 43 percent of this equipment, Asia is on the rise with
41 percent, followed by North America with 7 percent, South America with 5 percent and Africa with
4 percent.Technology TourITC and ACIMIT hosted
Textile World and a delegation from North Carolina State Universitys (NCSU) College of
Textiles, Raleigh, N.C., during a recent tour of machinery and manufacturing facilities in Italy,
offering a rare glimpse at the inner workings of the industry and what it has to offer. Alex Mussa,
ITCs Atlanta-based assistant trade commissioner, coordinated and facilitated the tour.In addition
to visiting manufacturers, the delegation met with ACIMIT President Alberto Sacchi; Badanelli; and
Pietro Goglia, Italian Institute for Foreign Trade. Additional presentations by Tecnotessile
S.r.l., Centro Tessile Cotoniero e Abbigliamento S.p.A. and Texilia Istituto per la Tradizione e la
Tecnologia Tessile provided a look at the regional support of technical laboratories and research
available to Italian textile manufacturers.
June 2003