Pharr Yarns To Expand Operations

With partial support from a $200,000 grant from the One North Carolina Fund – a state incentive
grant program that promotes economic growth in North Carolina – Pharr Yarns Inc., McAdenville,
N.C., has begun construction on a new plant that will house fiber manufacturing lines within the
company’s carpet yarn manufacturing division.

“Pharr Yarns chose to build this facility in McAdenville because of the performance of its
current highly skilled manufacturing workforce and its proximity to our existing operations,” said
J. M. Carstarphen, chairman and CEO. “Our company greatly appreciates the support of the state and
county in providing training support and economic incentives to assist in the launch of this
important project.”

Over the next three years, Pharr plans to invest $30 million and create 75 jobs, which will
include manufacturing and supervisory positions in the new plant.

Operations are expected to begin by the end of this year.

July 2005