RadiciSpandex Corporation To Reduce Operations

GASTONIA, N.C. — October 15, 2011 — Gastonia, NC based RadiciSpandex Corporation has announced a
reduction in operations at its two facilities.

The company manufactures spandex yarn at its facility in Tuscaloosa, AL and provides
finishing and distribution at its distribution center in Gastonia, NC. The company has given 60
days WARN notice to its employees in Alabama and has advised employees in Gastonia of the
likelihood of reductions in personnel over the next several months. The exact length of the
reduction in operations is unknown at this time so the company is notifying its employees and
providing the WARN notice The actual timing of the operation reduction at both facilities will
depend on business conditions and other business planning now underway.

“The spandex market has been difficult the past several months with an oversupply of spandex
in the global market driving prices down at the same time raw material prices have increased over
25%” said CEO Marty Moran. “These conditions look to continue for the foreseeable future and
RadiciSpandex has made the decision to reduce operations to control the losses the company is
suffering. The company intends to work with its employees, customers, and suppliers for an orderly
reduction of operations while the company pursues alternative modes of business operations. The
company is following market conditions to determine if US production can be restarted.”

Posted on October 18, 2011

Source: RadiciSpandex Corp.