PGI Begins Plant Expansion In Mexico

Charlotte-based Polymer Group Inc. (PGI) has started an approximately $50 million expansion of its
plant in San Luis Potosi, Mexico. The plant will house the new Reifenhäuser Reicofil® 4 line, a
state-of-the-art multi-beam spunmelt line that will produce hygiene and medical fabrics for the
North America market.

“The high-quality, skilled local workforce and support from the government has enabled PGI to
grow and thrive at this plant since we began operations in 1994,” said Rolando Dominguez, PGI’s
vice president and general manager for Latin America. Since the company purchased the plant in 1994
from Bonlam S.A., a subsidiary of Cydsa S.A. de C.V., PGI has made several expansions to the
facility, which have more than quadrupled overall employment. PGI currently employs around 400
people at the plant, but the expansion is expected to generate more than 40 jobs and have a
positive economic impact on the community through supplier relationships.

The new spunmelt line — expected to begin production by mid-2009 — will add approximately
15,000 metric tons of production capacity and will produce high-quality, lightweight, strong
fabrics used in diaper parts such as fine denier back sheets and leg cuffs, as well as fabrics that
give high-barrier protection and comfort for medical garments.

May 27, 2008