Tuscarora, CloverTex Merge

Mount Pleasant, N.C.-based Tuscarora Yarns Inc. – a specialty yarn spinner with manufacturing
plants in Mount Pleasant, China Grove and Oakboro, as well as an international office in Gastonia,
N.C. – has merged with Clover, S.C.-based specialty yarn manufacturer CloverTex LLC. The merged
company will operate under the Tuscarora name and plans to maintain all existing facilities.
CloverTex CEO David M. Roberts has joined the executive group at Tuscarora’s corporate offices. The
companies aim to create an efficient, unified business for the production of innovative specialty
colored yarns for the United States, Central and South America, and other worldwide markets.

Tuscarora plans to install new spinning equipment to enhance and broaden its product lines
for specialty yarns.

In particular, seeing a gap in the marketplace with the recent closure of two spinning mills
in North Carolina, the company expects to expand its line of natural specialty yarns produced in a
recently opened facility.

May/June 2009