AWI Introduces MerinoCool™, MerinoFresh™

Australian Wool Innovation Ltd.  (AWI) — the research, development and marketing organization
of Australia’s wool industry — has launched MerinoCool™, a new lightweight, woven fabric suitable
for year-round apparel. Constructed from a new generation of fine Australian Merino fibers that are
spun into yarns and woven into a fabric weighing less than 165 grams per square meter, MerinoCool™
fabrics allow the wearer to stay cool or warm, depending on the environmental conditions and
wearing situation. According to AWI, the fabric also has a fineness, softness and hand, as well as
good drape properties. The company is targeting MerinoCool™ to the smart casual market in Italy,
France, Japan, Korea, India and China.

AWI also has introduced MerinoFresh™, a technology that permits woven apparel made from
Merino wool to be refreshed or cleaned after wear using a domestic shower. The user simply hangs
the garment on an appropriate hanger, and rinses it in the shower for three to four minutes using
clean, warm water. The process removes smog, dirt, common water-based stains, smoke and odors.
Water-based stains that are more ingrained can generally be removed with a mild detergent solution.
Following rinsing, garments can be drip-dried over a period of three to four hours at room
temperature. Generally, when garments are handled as recommended, no ironing is needed following

“A MerinoFresh garment not only looks smart all day, it also saves on trips to the dry
cleaner, reducing costs and very importantly, impact on the environment,” said Craig Welsh, CEO,

Manufacturing involves the following process: first, the base fabric is stabilized to
eliminate shrinkage; then the garment is sewn and made-up using special techniques; and lastly, the
garment seams, creases, trims and accessories are permanently set. According to AWI, MerinoFresh is
the world’s first rinse-and-clean shower suit technology. The company is introducing it to
companies in China, India, Korea and Europe.

October 1, 2008