Parkdale Expects To Reopen Former Wellstone Plant By Year End

Gastonia, N.C.-based sales yarn spinner Parkdale Mills Inc. has announced it will begin operations
by the end of this year at a plant in Gaffney, S.C., formerly owned by Wellstone Mills. This
announcement follows the news that Parkdale had signed a lease/purchase agreement with Wellstone
for four of its spinning plants
(See ”
Acquires Wellstone Plants
,” March 23, 2010)
. Parkdale will invest $45 million to furnish
the plant, which is located in Cherokee County, S.C., with new equipment and also upgrade existing
machinery. Up to 145 jobs at the plant that were lost when Wellstone closed will be recovered.

“For our new operations, we were looking for a building that would suit our current needs and
allow us room to grow,” said Lee Thomas, vice president of services, Parkdale Mills. “We found that
flexibility in the former Wellstone building. Cherokee County not only offered us an excellent
building, but also has a positive business climate. We look forward to making our facility
operational there in the coming months. We appreciate all the support we have received from state
and local officials in making this plan a reality.”

“Parkdale Mills has operated in South Carolina for decades, and this announcement reflects
the company’s continued commitment to our state,” said Joe Taylor, secretary of commerce. “The
decision to set up operations in the former Wellstone building offers another great example of an
adaptive reuse that will allow Parkdale Mills to get its operations up and running quickly and in
turn mean new job opportunities for the community sooner. … This announcement is also a reminder
that our state’s business-friendly climate plays a critical role in attracting new investments and
jobs, and perhaps most importantly in helping our existing businesses grow.”

June 15, 2010