Shuford Mills Spins Off Yarn Company

Shuford Mills LLC, Hickory, N.C., has  formed Shuford Yarns LLC to take over its yarn
business, which produces and distributes coarse-count cotton and polyester yarns for
home-furnishing and industrial applications. Shuford Mills owns 25 percent, and members of a new
management team that includes Shuford Mills President Allen Barwick own 75 percent of the new
company, which purchased Shuford Mills’ two yarn plants in Dudley Shoals, N.C., and Longview, N.C.

Shuford’s weaving operations have retained the Shuford Mills name and continue to operate a
plant in Hudson, N.C., which manufactures Outdura® outdoor fabrics and industrial fabrics.

“Establishing separate yarn and weaving operations ensures that each company will maintain a
keen focus on its unique manufacturing processes and market opportunities,” said Pope Shuford,
chairman, STM Industries Inc., parent company of Shuford Mills.

Barwick is president and Shuford is a member of the Board of Directors of Shuford Yarns,
which also is based in Hickory.

July/August 2006