Nilit To Expand Operations In Israel And China, Reaches Agreement With German Labor Union

MIGDAL HA’EMEK, Israel — May 31, 2011 — NILIT®, a global manufacturer and leader in the production
of nylon 6.6, today announced an important expansion plan covering its plants in Israel and China,
enabling it to significantly increase production at these key sites. The company also announced
that its German subsidiary, NILIT Germany GmbH, has signed an agreement with the Works Council and
a key Labor Union, enabling the company to continue efficient production at its plant in
Oestringen, Germany.

Labor agreement in Germany

As a result the agreement with the Works Council and Germany’s Industrial Union for
Mining, Chemical and Energy, NILIT Germany, will be able to continue with efficient production of
nylon 6.6 POY and FDY yarns at its plant in Oestringen, Germany, without disruption to production
or delivery to customers.

“This agreement lays the groundwork for ongoing cooperation, benefitting our employees and
enabling us to continue serving our customers with the highest levels of quality and service,” said
Mr. Arie Gottlieb, General Manager of NILIT. “We thank the Works Council and Industrial Union for
Mining, Chemical and Energy for their positive and constructive cooperation, a key factor in
reaching this mutually acceptable agreement.”

Expansion to NILIT production facilities in China and Israel

NILIT has taken some key strategic decisions to expand nylon fiber production at other key
sites, in Israel and China.

NILIT Ltd., located at NILIT’s global headquarters in Migdal Ha’emek, Israel, will add new
POY (partially oriented yarn) and FDY (fully drawn yarn) production lines to its existing
production facilities.

In China, NILIT Nylon Technologies (Suzhou) Co., Ltd will make further strategic investments,
adding a new spinning plant and expanding the company’s texturing capacity.

“Our planned expansions in Israel and China reflect the growing demand for the high-quality
nylon 6.6 products that NILIT is already known for,” commented Mr. Gottlieb.

Michael Levi, Chairman of NILIT added, “we look forward to bringing the new capabilities and
expanded capacity online and to continually improving our service to our worldwide customer base.”

In parallel NILIT also announced the opening of a sales and service office in Sao Paolo,
Brazil to better service our customers throughout South America and in Brazil in particular.

Posted on June 15, 2011

Source: Nilit Ltd.