PGI To Expand Capacity In Argentina

Polymer Group Inc. (PGI), North
Charleston, S.C., has announced plans to more than double the production capacity of its
joint-venture facility, Dominion Nonwovens Sudamericana S.A. (DNS), in Buenos Aires, Argentina, to
better serve its customers for hygiene products in the Common Market of the South (Mercosur)
trading region.

Installation of the state-of-the-art wide-width, multibeam spunbond line — which will have
an annual production capacity of more than 15,000 tonnes — will begin during the second half of
2006, and the company expects to begin commercial production on the line in late 2007.

The new line will produce high-quality, fine-denier top sheet and other materials for diaper
applications. DNS also will combine the new line’s capacity with its coating capabilities to
produce value-added goods such as cloth-like backsheet.

“The developing regions of the world, like Argentina, hold significant potential for PGI as
we continue to execute on our strategy of growth by offering the right product in the right places
around the world,” said James L. Schaeffer, CEO, PGI. “Our joint venture in Argentina is recognized
as a world-class producer of engineered materials, and this line will enable us to continue to
provide the highest-quality products available in the markets to customers where they need them.”

DNS began operations in Buenos Aires in 1997, installing a multibeam spunmelt line to
provide hygiene and industrial products in Mercosur markets. In 2003, it added an extrusion line to
expand its production capabilities.

June 20, 2006