Hanesbrands Sells Yarn Operations To Parkdale

Hanesbrands Inc., Winston-Salem, N.C., has announced it will discontinue its own yarn production
and source all yarn from major yarn suppliers. The branded apparel maker plans to sell three yarn
manufacturing operations to Gastonia, N.C.-based sales yarn spinner Parkdale Mills and shutter a
fourth operation.

Hanesbrands stated it is not strategically advantageous to continue to produce its own yarn,
and outsourcing that production will not change material costs for the company. In addition, it
expects to realize $100 million in balance sheet benefits within six months after the sale, which
is expected to be completed this quarter.

Parkdale will acquire the operations of Hanesbrands’ Rabun Gap, Ga., Mountain City, Tenn.,
and Galax, Va., yarn facilities, which altogether employ 780 workers. The plants will continue to
supply yarn to Hanesbrands, as will other Parkdale plants in the United States. Hanesbrands reports
these supplies will satisfy its needs for a significant portion of its Western Hemisphere apparel

Hanesbrands has closed its yarn plant in Sanford, N.C., impacting some 150 employees; and
also its cotton warehouse in Advance, N.C., and its yarn warehouse in Clemmons, N.C. Together, the
warehouses employed 25 workers.

November/December 2009