Valdese Weavers
Purchases Joan Fabrics Business Units

Valdese, N.C.-based Valdese Weavers, a developer, producer and marketer of textile products used in
the contract and residential markets, has acquired the Guild 360 Contract and Circa/Doblin business
units of Tyngsboro, Mass.-based Joan Fabrics. A manufacturer of woven jacquard and velour fabrics
for similar markets in North America, Joan Fabrics recently filed for Chapter 11 reorganization.
The transaction, subject to the approval of the Bankruptcy Court, is expected to close this month.

Valdese expects Circa/Doblin to operate as a separate Valese Weavers business unit under its
current management team. The Guild 360 Contract unit will merge into Valdese Weavers Contract.

“We plan to fully leverage the assets of Circa/Doblin with our vertical operations at Valdese
Weavers to enhance Circa/Doblin’s ability to supply fashion-forward products with an absolute
commitment to quality and service,” said Michael Shelton, president and CEO, Valdese Weavers. “For
Guild 360, our expectation is to solidify the service aspect of this business, and thereby
re-establish the credibility of these products in the marketplace.”

July 3, 2007