Marzoli, Trützschler Enter Agreement

Marzoli S.p.A., an Italy-based
manufacturer of spinning machinery, and Trützschler GmbH & Co. KG, a Germany-based producer of
spinning preparation machinery, have entered into an agreement for the development and production
of lap winders and combing machines. Marzoli will build the new combing machines, while Trützschler
will handle sales and customer service.

Trützschler expects to commence delivery of the machines early next year.

July/August 2007