The Merino Company Acquires Specialist Spinning Company NUYARN

MELBOURNE, Australia — February 28, 2013 — The Merino Company (TMC) has
acquired renowned spinning facility NUYARN®, strengthening its fabric and garment offerings to the
outdoor, fashion, performance socks and seamless markets.

Since its beginnings some 14 years ago in Christchurch, New Zealand, NUYARN® has been
regarded as the spinning technology that reinvented worldwide expectations for innovative fabrics
and apparel.

The acquisition of NUYARN® and its worldwide patents enables TMC to produce highly
specialised circular knitted fabrics, fully fashioned and seamless garments. TMC aims to further
develop the technology and commercialise a raft of new fabrics and apparel, making significant
improvements to merino and merino blends.

“TMC has been manufacturing with NUYARN® yarns for approximately eight years but had been
confined to Australasia until 2012,” said TMC’s CEO Andy Wynne. “The acquisition of NUYARN® will
see TMC capture greater market share through real innovation and performance.”

NUYARN® has been relocated from Christchurch to TMC’s textile facility in Levin, Levana
Textiles. Key NUYARN® technicians will join the team in Levin and will oversee training of new
staff, production, innovation and expansion.

Wynn said, “TMC has acquired enough machinery to increase the output of NUYARN® by some
54,000kg per month. This expansion program will take three years and create 40 additional jobs in

TMC’s fabrics made using NUYARN® technology will boast enhanced comfort and impressive
performance criteria independently certified by AG Research, the leading Wool Research Organisation
of New Zealand (WRONZ) including:

• Durability without added weight: Bulk 38.9% higher

• Improved stretch and recovery: Burst strength 16% greater

• Quick dry:up to 5 times faster

• Warmth Retention: 25% higher

• Air Resistance: 62% higher

• Relative Water Vapour Resistance: 51% higher

• Blister free socks

The combination of NUYARN®’s specialised spinning technology with TMC’s reputation for
quality and innovation will provide a strong and unique competitive edge and expanded product
offering to their customers.

Posted on March 5, 2013

Source: The Merino Company