Fong’s Acquires Monforts

Fong’s Industries Co. Ltd. — a Hong Kong-based textile machinery manufacturer that is part of China
Hi-Tech Group Corp. — has acquired A. Monforts Textilmaschinen GmbH & Co. KG. — a Germany-based
supplier of dyeing and finishing equipment — from Monforts’ parent company, L. Possehl Co. &
mbH, Germany. The acquisition also includes Monforts’ subsidiary, Montex-Maschinenfabrik Ges.m.b.H,
and its production site in St. Stefan, Austria; and Monforts’ 50-percent stake in Monforts Fong’s
Textile Machinery Co. Ltd. (Monfongs) — a joint venture established in 1998 by Monforts and Fong’s.
Possehl will hold a 9.9-percent share of Monfongs.

“Monforts and Fong’s fit together perfectly,” said Alex Wan, CEO, Fong’s. “Monforts is the
leader in innovation in textile finishing machinery. It will considerably strengthen our
international competitiveness, which has set course for worldwide leadership and excellence in the
textile machinery business.”

“Today’s announcement intensifies our long-standing cooperation with Fong’s and opens up new
opportunities for Monforts,” said Roland Hampel, managing director, Monforts. “Innovation stands at
the core of our daily work and we look forward to strategically developing new business areas for
our customers with our trusted and successful partners in China.”

Wan and Hampel emphasized technical textiles as a prospective business area on which the
companies will focus. The companies also plan to establish what they describe as the “textile
machine factory of the future” in Zhongshan, China, in the near future.

June 21, 2012

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