Pushing the limits of technology to spin and weave products a new way There is a
heady feeling about walking into an American textile plant running full-tilt, with the latest
offerings of a number of the worlds leading machinery manufacturers churning out high-quality yarn
and fabric. Thats exactly whats in store for visitors to Ramtex Inc. in Ramseur, N.C.; a
manufacturer of fabrics and yarn for shirting, pocketing and uniform apparel. The plant, located
just a few miles from Asheboro, is a hive of productivity, from opening and blending through
weaving.  In many ways, Ramtex resembles an R and D plant more than an actual yarn and fabric
production facility. Companies such as Murata, Sulzer, Trutzschler and others often approach Ramtex
first when seeking production trials of new machinery. In fact, as
Textile World was considering candidates to profile in this Success Stories issue, the
Ramtex name came up time and time again from machinery manufacturers as an example of a plant on
the cutting edge of manufacturing technology and process control.

Murata selected Ramtex as the third U.S. test bed for its Vortex Spinning
system. Reasons For SuccessThe reasons behind the plants obvious success are many, according
to Walter Bosch, executive vice president. To begin with, we have a very young team of people who
are energetic and enthusiastic, he said. They are not afraid to bring fresh ideas to the table. We
are very strong in process improvement. Secondly, we are a family-owned operation. We have all the
newest machinery. If it comes out and it looks like it will contribute to our business, we get
it. 

Unlike a number of facilities throughout the world that keep machinery for many years, Ramtex
isnt afraid to replace machinery only a few years old if warranted by productivity, efficiency and
quality gains, Bosch said.Another aspect of Ramtex that contributes heavily to its success is the
companys attitude toward people. Bosch, who personally handles the training and education of his
management team, said the company seeks young, enthusiastic people to employ as trainees, as well
as top students from the major textile schools, and sees how they fit into the companys management
system.Ramtex was a Burlington facility until 1988, when it was acquired by the Lee family of Hong
Kong, which owns, among other businesses, the TAL Group, a Hong Kong apparel maker. They are the
biggest shirt manufacturer in the world, Bosch said, and the biggest shirt importer into the United
States. Ramtex is the only production facility in America owned by the family, although there is a
distribution facility in Louisville. They have invested close to $150 million in Ramtex and have
never taken any money out. They reinvest everything.The results of that reinvestment can be seen
out on the plant floor. As a visitor walks through the plant which incorporates one million square
feet under one roof and takes almost an hour to tour at a brisk pace opening and blending is the
first process that makes an impression. With nothing in the opening room more than several years
old, the process is exceptionally clean a necessity, considering the processing rigors the fiber
must endure in this most modern and speedy of mills. The opening room is dominated by new
Trutzschler Blendomat lines. After opening and blending, Trutzschler 803 and 903 cards prepare
sliver at about 120 pounds per hour for the 70 Rieter SB D10 and RSB D30 draw frames. Since a high
percentage of Ramtex production is combed cotton, the plant has Rieter UNIlap lap-winding machines
and Model E60 and E70R combers. Spinning YarnIn ring spinning, the company has 31 RS100
machines from Toyota Industries (formerly Toyoda Automatic Loomworks) linked to Murata Link Coners.
Some of the ring spinning frames are a decade old and are among the oldest operating machinery
still in production at the plant.Ramtex was among the first companies to employ Muratas air-jet
spinning (MJS) systems and still maintains Model 801, 802 H and 802 HR MJS machines in production.
But the unquestioned star of the Ramtex yarn preparation stable is the new Vortex Spinning (MVS)
system from Murata. Although not the first U.S. installation Bosch said Murata at first was looking
for completely vertical installations, and Ramtex does not do any finishing the exceptional track
record of the company prompted Murata to make Ramtex the third U.S. test bed, after Springs and
Russell.While the benefits of MVS are significant, so is the stress it puts on the entire
processing system. Vortex is a very demanding system, Bosch said. You have to have very good sliver
preparation. Carding, combing and drawing need to be excellent, to the highest standards of
quality. There are probably not a lot of mills in the United States that are technologically
capable of utilizing MVS to its fullest potential. It is very, very demanding on the technical
side.But the payoff is big, as well. Manufacturing costs less with the MVS than with ring spinning,
Bosch said. You dont have a roving or handling system, which can be quite costly.Among the biggest
selling points of the MVS system and Ramtex currently has 27 machines installed is its versatility,
Bosch said. You can create a yarn specifically for an application. You can make it more or less
hairy depending upon the needs of the customer.MVS yarns produced at Ramtex find applications in
woven sheets and bedroom accessories; and knitted womenswear, T-shirts and golf wear. Interestingly
enough, while Bosch concedes the yarn quality from the MVS is among the very highest produced by
the plant, Ramtex uses little of the Vortex yarn internally.Were always sold out, he quipped. We
end up buying a lot of our yarn for weaving from companies such as Parkdale.For the immediate
future, Ramtex plans to replace some of its older MJS spinning frames with Vortex technology. The
company currently has 34 of the Murata air-jet spinning machines in place.Ramtex also ran a trial
last year with Rieters ComforSpin compact spinning system. ComforSpin is perfect for shirting,
Bosch said. Someday, when the demand for fine-count, 100-percent cotton yarns increases, we will
have ComforSpin in this plant, I am sure. Weaving FabricIn weaving preparation, Ramtex employs
Benninger Ben-Vac and Ben-Direct warpers, and the new SAS-PW pre-wet sizing system from WestPoint
FoundryandMachine Co. 

For weaving machines, Ramtex enjoys a highly successful partnership with Sulzer, Bosch said.
The company has 260 L5200 air jets in place and is the first U.S. installation of Sulzers M8300
multiphase machine, which is capable of performing four simultaneous weft insertions. There are
currently 14 M8300s in operation and more on the way. Production speed on the M8300 is nothing
short of incredible, with an average of 2,800 picks per minute, which translates into almost 1.5
yards of fabric every minute. The company currently weaves more than 900,000 yards per week;
130,000 of which come from the 14 multiphase machines. The plants weaving operations run in three
shifts, five days per week. The M8300 is a fascinating machine, Bosch said. The potential
productivity is very substantial. However, with such a high-speed machine, there are several
challenges that must be addressed.The first is somewhat obvious. In olden days, a short loom
stoppage would not affect overall productivity to any great degree. At a fraction of the M8300s
speed, there just werent that many yards of production to be lost. With the multiphase machine,
however, it is an entirely different matter. More than two loom stops per 100,000 picks plummet the
machines efficiency level below 85 percent. It is the mission of Ramtex, Bosch said, to maintain
all production machinery at efficiency levels exceeding 90 percent. To avoid costly loom stops, he
said, the yarn must be nearly perfect, particularly the weft. Warp yarns generally acceptable for
high-speed air-jet weaving will usually suffice for the M8300. Another issue with the machine is
style changes, which can be very costly. At this point, there are not a lot of these machines in
place. There havent been a lot of styles developed yet, so every time there is a style change, it
must be developed from the very start. That is an issue Bosch said will likely be resolved when
Sulzer has enough machines installed worldwide to further develop the support base for the
product.During the week
TW visited the plant, the 14 M8300s ran at 82-percent efficiency with an average of 2.8
loom stops per 100,000 picks. Weve got to do better than that, he said, and we will. It is just a
matter of time and experience. Controlling QualityFor fabric inspection, Ramtex relies upon
the I-TEX offerings from Elbit Vision Systems, which detect defects with up to 90-percent accuracy,
roughly double the rate of manual inspection. I-TEX not only detects fabric defects but provides
the exact location of the defect in the fabric roll.With so much ultra-modern machinery, Ramtex
must constantly monitor production data to ensure maximum quality and efficiency. To this end, the
company has an on-line Zellweger Uster SliverData system to monitor carding and drawing. A Murata
system monitors data on both the MJS and MVS spinning systems. An AlphaTex program keeps track of
weaving. Up next for the company is the installation of an on-line system for weaving preparation.
Overall, seven terminals, located at various intervals throughout the plant, give managers and
operators a quick glance at the operating efficiencies of each process.In winding, the company
currently has Murata machinery, but it also has conducted trials with the Schlafhorst Autoconer
338. Bosch is currently awaiting the opportunity to test the new 21-C Process Coner from Murata,
which made quite a splash at the recent Asian textile shows.The facility is ultra-modern and on the
absolute cutting edge of processes and technology. Spinning yarn and making fabric at a frenetic
pace, Ramtex certainly defies current market trends.

May 2002

Acquisition Strengthens Sears’ Apparel Offerings; Expands Lands’ End Brand HOFFMAN ESTATES, Ill.
and DODGEVILLE, Wis., May 13 /PRNewswire/ — Sears, Roebuck and Co. (NYSE:S) and Lands’ End, Inc.
(NYSE:LE) have entered into a definitive agreement for Sears to acquire the direct merchant in a
cash tender offer for $62 per Lands’ End share, or approximately $1.9 billion.Upon completion of
the transaction, expected in June, Lands’ End will become a wholly owned subsidiary of Sears and
will continue to be headquartered in Dodgeville. Lands’ End is the largest specialty apparel
catalog company and seller of apparel on the Internet in the U.S.Sears has agreed to commence a
tender offer to acquire all shares of Lands’ End stock. Gary C. Comer, founder and chairman, and
certain other Lands’ End shareholders have agreed to tender their shares, representing
approximately 55 percent of the outstanding common stock. The tender offer requires that at least
two-thirds of the fully diluted shares be tendered. The transaction, which has been approved by
both companies’ board of directors, is contingent upon customary closing conditions, including
regulatory and other standard approvals.Sears will introduce a selection of Lands’ End products
into many of its 870 full-line stores by fall 2002 and is expected to complete product rollout to
stores by fall 2003. Sears stores will carry a compelling assortment of Lands’ End men’s, women’s,
and children’s apparel, as well as a selection of footwear, accessories and home fashions.Lands’
End will continue to offer its complete product line direct to customers through its catalogs and
online at landsend.com. The growth prospects of Lands’ End and Sears’ customer-direct businesses,
which consist of online and catalog operations, will be enhanced significantly.Alan J. Lacy,
chairman and chief executive officer, said the opportunity to be the exclusive retail distributor
of Lands’ End merchandise is significant to the Sears’ overall apparel strategy. It further
differentiates Sears as a destination for nationally recognized brands, improves its apparel
offering and accelerates growth of its customer-direct business. Lands’ End and Covington, Sears’
new proprietary classic apparel line launching this fall, will be the foundation of the company’s
proprietary apparel offerings. Including other important national brands, Sears will provide
compelling apparel assortment choices to its customers.”Lands’ End is a very successful and
well-managed company,” Lacy said. “We were drawn to Lands’ End’s brand strength across all apparel
categories, including men’s, women’s and children’s. It is an excellent fit for Sears and our
customers, and will aid us in becoming the preferred shopping destination for families. We can help
accelerate the growth of the Lands’ End direct business through Sears’ extensive customer
relationships.””Today’s transaction allows us to increase the market penetration of the Lands’ End
brand through exclusive retail distribution in approximately 870 Sears stores,” said David F. Dyer,
president and chief executive officer of Lands’ End. “Strategically, we view retail distribution of
our products as an important growth opportunity. We were considering the prospect of opening stores
ourselves or seeking a strategic partner, and ultimately decided that our alliance with Sears
offered the most exciting opportunity. Sears is the logical partner for us, considering its
heritage of quality and strong proprietary brands, such as Craftsman and Kenmore. I feel confident
that customers will respond well to another exceptional brand at Sears.”Dyer will continue to lead
the Lands’ End business, reporting to Lacy after the transaction closes. Dyer also will assume
responsibility for Sears’ existing customer-direct business, which includes sears.com, catalogs and
specialty merchandise.Lacy said the transaction does not alter Sears outlook for the year. The
transaction is expected to be slightly dilutive to break-even in 2002 and 2003 and significantly
accretive in 2004. “Considering the minimal impact to 2002 earnings, we continue to expect 2002
full year comparable earnings per share, including Lands’ End, to increase approximately 17 percent
from the prior year amount of $4.22,” Lacy said. Sears does not expect to record a special charge
for the Lands’ End transaction.About Our CompaniesLands’ End is a direct merchant of traditionally
styled, classic casual clothing offered to customers around the world through regular mailings of
its monthly and specialty catalogs and via the Internet at landsend.com. In 2001, Lands’ End annual
revenue was approximately $1.6 billionSears, Roebuck and Co. is a broadline retailer with
significant service and credit businesses. In 2001, the company’s annual revenue was more than $41
billion. The company offers its wide range of apparel, home and automotive products and services to
families in the U.S. through Sears stores nationwide, including approximately 870 full-line stores.
Sears also offers a variety of merchandise and services through its Web site, sears.com.Sears,
Roebuck and Company Cautionary Statement Regarding Forward-Looking InformationCertain statements
made in this news release, including statements under the heading “Sears Reaffirms 2002 Guidance”
and other statements using the terms “expected,” “will,” “plans” and other words of similar
meaning, are “forward-looking statements” based on assumptions about the future, which are subject
to risks and uncertainties, such as competitive conditions in retail; changes in consumer
confidence and spending; interest rates, delinquency and charge-off trends in the credit card
receivables portfolio; the successful execution of and customer reactions to the company’s
strategic initiatives, including the full-line store strategy and the proposed acquisition of
Lands’ End; Sears’ ability to integrate and operate Lands’ End successfully; anticipated cash flow;
general economic conditions and normal business uncertainty. Sears cautions that these statements
are not guarantees of future performance. Actual results may differ materially. In addition, Sears
typically earns a disproportionate share of its operating income in the fourth quarter due to
seasonal buying patterns, which are difficult to forecast with certainty. The company intends the
forward-looking statement in this release to speak only as of the time of this release and does not
undertake to update or revise this projection as more information becomes available.Lands’ End
Cautionary Statement Regarding Forward-Looking InformationStatements in this release that are not
historical, including, without limitation, statements regarding our plans, expectations,
assumptions, and estimations for this transaction or for fiscal 2003 revenues, gross profit margin,
and earnings, as well as anticipated sales trends and future development of our business strategy,
are considered forward-looking and speak only as of today’s date. As such, these statements are
subject to a number of risks and uncertainties. Future results may be materially different from
those expressed or implied by these statements due to a number of factors. Currently, we believe
that the principal factors that could create uncertainty about our future results are the
following: customer response to our merchandise offerings, circulation changes and other
initiatives; the mix of our sales between full price and liquidation merchandise; overall consumer
confidence and general economic conditions, both domestic and foreign; effects of weather on
customer purchasing behavior; effects of shifting patterns of e-commerce versus catalog purchases;
costs associated with printing and mailing catalogs and fulfilling orders; dependence on consumer
seasonal buying patterns; fluctuations in foreign currency exchange rates; and changes that may
have different effects on the various sectors in which we operate (e.g., rather than individual
consumers, the Business Outfitters division, included in the specialty segment, sells to numerous
corporations, and certain of these sales are for their corporate promotional activities). Our
future results could, of course, be affected by other factors as well. Also, this transaction is
not yet completed and is subject to a two-thirds minimum tender condition. More information about
these risks and uncertainties may be found in the company’s 8K and 10K filings with the S.E.C.The
company does not undertake to publicly update or revise its forward- looking statements even if
experience or future changes make it clear that any projected results expressed or implied therein
will not be realized.Additional InformationThis announcement is neither an offer to purchase nor a
solicitation of an offer to sell securities of Lands’ End. At the time the offer is commenced,
Sears will file a tender offer statement with the U.S. Securities and Exchange Commission and
Lands’ End will file a solicitation/recommendation statement with respect to the offer. Investors
and Lands’ End stockholders are strongly advised to read the tender offer statement (including an
offer purchase, letter of transmittal and related tender documents) and the related
solicitation/recommendation statement because they will contain important information. These
documents will be available at no charge at the SEC’s Web site at http://www.sec.gov/ and may also
be obtained by calling (800) 732-7780 and selecting option three. Copyright 2002 PR Newswire

PONTE VEDRA, FL Richard P. Strawhorn, Director, Risk Management for Mohawk Industries in Calhoun,
GA, was today elected President of The Textile Education Foundation, Inc. (TEF) at the 59th Annual
Meeting of the Foundation in Ponte Vedra, FL.Strawhorn succeeds J. Tom Watters, Jr., the Chairman
of the Board of Syntec Industries in Rome, as President. Lee S. Bryan, General Manager of Finishing
for Mount Vernon Mills, Inc. in Trion was elected Vice President, and John Cahill, Vice President
of Human Resources for Ten Cate Nicolon, USA in Pendergrass, GA was elected Treasurer.Strawhorn was
born and raised in Abbeville County, South Carolina and graduated from Furman University in
Greenville and subsequently from The Financial Management Program of Stanford University in Palo
Alto, California.He began his career as an Accounts Payable Clerk for the Rocky River Plant of
Bigelow Sanford and went on to become a member of the senior management teams at Bigelow,
Fieldcrest Cannon and the Residential Division of Mohawk Industries. Extremely active in the
community and with his church, Strawhorn serves on the Executive Committee of the Gordon Chamber of
Commerce and is a past Chairman of that organization. He is also a member of the Administrative
Council of the Calhoun United Methodist Church where he has served for several years as Chairman of
the Finance Committee. He is a member of the Board of the North Georgia Chapter of the Institute of
Management Accountants and the Coosa Valley Technical College and serves on the Financial Officers
Council of the Carpet and Rug Institute. He also serves on the Board of GTMA – The Association of
Georgias Textile, Carpet and Consumer Products Manufacturers.Bryan is a member of a family which
has provided distinguished leadership to the industry, to GTMA and to TEF for decades. A native of
Jefferson, he began his career in the industry in 1980 as a manufacturing trainee with Burlington
Industries following his graduation from Purdue University with a degree in Industrial Engineering.
He joined his family-owned Jefferson Mills in 1984 as Finishing Plant Manager and was subsequently
named Vice President of Manufacturing. Jefferson Mills was sold to Texfi Industries in 1991, and
Bryan remained with the company as its Plant Manager until he joined Mount Vernon Mills in
1993.Bryan has been very active in his community having served as President of Armuchee Education
Foundation and the Jefferson Rotary Club, and past board member of the Summerville/Trion Rotary
Club and First Methodist Church of Rome. He currently serves on the External Advisory Board of the
Georgia Tech School of Textile and Fiber Engineering and as a mentor to a current textile student.
In addition, he serves on the Executive Committee of TEF and the Board of GTMA. Cahill is a
graduate of Kings College in Wilkes Barre, Pennsylvania, where he lettered in both football and
golf. His professional career has included stints at Sears RoebuckandCompany and Borden, prior to
joining Ten Cate Nicolon USA in 1990. He has been involved with the Human Resources Committee of
GTMA for several years and currently serves as its Chairman. He is a avid golfer and budding
author, now working on his first book.Three textile executives were elected by the Foundations
membership to serve three-year terms on the board of directors: Hank Millsaps, Vice President of
Human Resources, CollinsandAikman Floorcoverings, Dalton; Larry Porter, General Manager of Greige
Fabrics, Mount Vernon Mills, Alto; and Denise Statham, Director of Marketing, Southern Mills, Inc.,
Union City.In addition, the Foundation elected Harry Batty, Chief Executive Officer of Sylvania
Yarn Systems, Sylvania and Jimmy L. Prater, Group Director, Natural Yarn and Carpet Manufacturing
of Shaw Industries, Dalton to fill unexpired terms on the Board.The Foundation also re-elected Roy
Bowen as Executive Vice President and Suzanne Wilkes as Secretary.Over 175 industry executives,
their spouses and those who supply and support the industry attended the Annual Meeting of TEF,
which was held in conjunction with the 102nd Annual Meeting of GTMA at the Sawgrass Marriott, Ponte
Vedra, Florida.Established in 1943 to help meet the industrys demand for textile engineers, TEF has
expended several million dollars, primarily for assistance to the School of Textile and Fiber
Engineering at Georgia Tech in Atlanta and at the Apparel/Textile Engineering Technology Department
at Southern Polytechnic State University in Marietta. Included have been funds for student
scholarships and recruitment, the Executive-in-Residence, textile machinery and laboratory
equipment, field trips to textile plants and promotion of textile career opportunities.