Karl Mayer (China) Celebrates First Anniversary In New Plant

Karl Mayer (China) Ltd. — a China-based producer of warp knitting and warp preparation machines,
and a subsidiary of Germany-based Karl Mayer Textilmaschinenfabrik GmbH — recently celebrated its
first anniversary in a new high-tech factory. During its first year of production, the facility
manufactured some 400 warp knitting and warp preparation machines. Karl Mayer (China) reports it
experienced a drop in orders in the second half of 2008, but that a steady increase in orders has
been noted so far in 2009.

Karl Mayer (China) continues to invest in education for its employees at its own training
center. Approximately 70 staff members have participated in textile specialist training over the
past year.

The company hopes that with a world-class production facility, efficient products and a
well-trained workforce, it is in a good position to prosper as the market recovers.

October 21, 2009