ITG Downsizes White Oak Plant, Idles Nicaragua Operations

Greensboro, N.C.-based International Textile Group (ITG) has reduced capacity at its White Oak
Plant, which manufactures denim for ITG’s Cone Denim division. The company cited a decrease in
current demand in announcing the layoffs, which affected 100 employees. The news follows Cone
Denim’s announcement last December that it would shut down the White Oak Plant’s yarn operation and
reduce weaving capacity, laying off some 150 people. The White Oak facility now employs
approximately 300 people and continues to service the premium jeans market in the United States and

ITG also announced it will idle operations at its Cone Denim Nicaragua (CDN) facility for an
extended time as a result of weakness in the global economy and reductions in the Central American
supply chain. CDN is a fully vertical manufacturing facility near Managua, Nicaragua, that opened
in April 2008. The plant employs some 850 people to process raw cotton fiber into finished denim

“We continue to believe that the Central American supply chain is a viable supply chain mid-
to longer-term, and we are continuing to work with the Nicaraguan government and others in the
supply chain to develop future opportunities,” said Delores Sides, director of corporate
communications and human relations, ITG.

In other company news, ITG’s Burlington Worldwide uniform business recently received a
contract from the US Department of Defense to manufacture uniform fabric.

April 28, 2009