Tefron In Discussions To Set Up JV In Egypt

Israel-based Tefron Ltd. — a manufacturer of seamless intimate apparel, activewear and swimwear —
has announced it is in advanced negotiations with several third parties to establish a joint
venture (JV) for the manufacture of Tefron apparel in Egypt.

Tefron would own 50 percent of the JV, Tefron Egypt, and three other partners would own the
remainder. Tefron would transfer equipment worth approximately US$1 million, and other partners
would invest approximately US$1 million in cash to be used for investments and working capital to
begin Tefron Egypt’s activities. Tefron Egypt also would acquire additional services from Tefron.

June 17, 2009