Tefron Signs Licensing Agreement To Manufacture And Distribute High Performance European Sportswear In North America

MISGAV, Israel — October 3, 2012 — Tefron announced today that on September 27, 2012, the Company
approved a licensing agreement with X-Technology Swiss Research & Development AG (“XTS”) in
which Tefron has been granted exclusive rights to manufacture, market and distribute XTS sportswear
brands in North America. XTS, which is highly respected for its R&D services to select
industries, revolutionized the field of functional sports clothing in Europe during the past 15
years with its innovative, award-winning brands X-BIONIC and X-SOCKS.

According to the agreement, XTS appoints Tefron to be the manufacturer and exclusive
distributor of its sportswear and socks in North America and gives Tefron limited license to use
its intellectual property to manufacture the products. Tefron assumes responsibility for all sales
and distribution operations including advertising, marketing and promotion of products under the
trademarks of XTS and will be responsible for managing and training sales representatives and
training retailers. The agreement leaves open the possibility for future manufacture of other XTS
products by Tefron.

Commenting on the agreement, Tefron CEO Amit Meridor, said: “We are very pleased that XTS has
chosen Tefron to build its remarkable brand of technologically advanced, high-performance
sportswear in North America. This agreement is a breakthrough achievement for Tefron based on our
success, particularly in the past two years, in establishing efficient world-class manufacturing
capabilities and a reputation for strong global marketing and distribution.”

Mr. Meridor also pointed out that the agreement enables Tefron to considerably advance its
position in the sportswear industry going forward. “First,” said Mr. Meridor, “Tefron will be
expanding its range of athletic wear into areas of increasing global popularity including
bicycling, skiing, running, and trekking, and we will be manufacturing and distributing in these
sports segments for both the professional and amateur markets. Second, I believe there are
important synergies between the knowledge XTS has developed and Tefron’s extensive technological
base which, through our work in this agreement, will give Tefron major advantages over other
companies in our sector in developing new and even more advanced technologies.”

XTS CEO, Professor Bodo W. Lambertz said, “Like XTS, we find Tefron to be among the most
technologically advanced companies in the apparel industry. We, therefore, chose Tefron because
they have the sophistication in their manufacturing to produce our unique sportswear products and
because they have established a reputation for innovative athletic wear that we believe will best
serve to develop the North American market for our X-BIONIC and X-SOCKS brands. It is my personal
belief that only the companies capable of developing unique and complex technologies in our sector,
such as XTS and Tefron, will be able to create for themselves a significant competitive advantage
in the long run.”

Posted on October 8, 2012

Source: Tefron/PRNewswire