Cone Denim Jiaxing Invests In Sultex Weaving Machines

China-based Cone Denim (Jiaxing) Ltd. has selected P7300HP weaving machines from Switzerland-based
Sultex Ltd. for a new state-of-the-art denim plant in Jiaxing, Zhejiang, China. The company, a
joint venture of the US-based International Textile Group and Hong Kong-based Novel Holding Ltd.,
will install 140 of the projectile machines in its new plant during the second half of 2006. When
fully operational, Cone Denim Jiaxing — featuring technology from spinning to finishing — will have
the capacity to produce 27 million meters of premium denim per year.

(Left to right): Keechung Chao, Cone Denim Jiaxing CEO; Alexander Landau, Sultex Ltd.
general manager Asia/Pacific; and Marcus Bradsher, Cone Denim Jiaxing COO, after signing a contract
for Cone’s denim activities in China

“We have committed to our customers that during early 2007, we will be producing
in China the highest quality fabrics for which Cone Denim has been known for over a century,” said
Keechung Chao, CEO, Cone Denim Jiaxing. “We have been operating the Sulzer projectile weaving
machine at other locations for many years and have always been satisfied by its performance and
reliability. We know the quality of the machine itself, as well as the unique fabric quality
produced with it. In addition, we have worked with Sultex as a manufacturer and supplier of weaving
machines for a long time and we appreciate Sultex’s technical service capabilities and

January/February 2006