BAG Joins Forces With Martin Trust To Create BAA

Bannari Amman Group (BAG) — an India-based industrial conglomerate engaged in a wide range of
manufacturing, trading, distribution and financing activities — has launched a joint-venture
apparel production platform with a group headed by Martin Trust — owner and CEO of United
States-based Samtex (USA) Inc., a holding company involved in textile and apparel production. The
new company, known as Bannari Amman Apparel Ltd. (BAA), is based near Chennai, India.

BAA plans to build a world-class apparel manufacturing facility in India and offer “Design to
Delivery” solutions in women’s intimates and men’s underwear for global specialty brands and
retailers such as Victoria’s Secret. The company says it is the first apparel producer in India to
implement the Toyota Production System — a lean-manufacturing system — to provide customers with
flexibility as well as quality, delivery and competitive pricing consistency.

It also has launched new concepts such as a stand-up modular manufacturing system with a
single piece flow and double shift operation.

“India needs global talent and innovation to take it to the next level of performance and
compete effectively with China, which produces about one-third of all garments for the US market,”
said Trust, who joined BAG Chairman S. V. Balasubramaniam for a ribbon-cutting ceremony at the
plant. Trust is the first major US joint-venture investor in the Indian garment industry, according
to BAA.

The 172,000-square-foot manufacturing plant, expected to employ 4,500 people by 2012,
includes a medical center, childcare facility and cafeteria; and features eco-friendly systems such
as rainwater harvesting and a zero-discharge wastewater recycling system.

The company also enforces a policy against hiring workers under the age of 18.

Summer 2008