----

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|  New York                                                            |   |   |   |  11-2165495                    |
|---------------------------------------------------------------------------|--------|--------|--------|-------------------------------------|
|  (State or other jurisdiction of incorporation or organization) |   |   |   | (I.R.S. EmployerIdentification No.) |

| P.O. Box 19109 -7201 West Friendly Avenue Greensboro, NC |   |   |   |  27419      |
|----------------------------------------------------------|--------|--------|--------|------------------|
|  (Address of principal executive offices)           |   |   |   |  (Zip Code) |

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|                                     |                                                                                                                                  | Page   |
|------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| Part I.  Financial Information |
|                                     |                                                                                                                                  |   |
| Item 1.                                  | Financial Statements:                                                                                                                 |   |
|                                     |                                                                                                                                  |   |
|                                     | Condensed Consolidated Balance Sheets as of September 25, 2011 and June 26, 2011                                                      | 3      |
|                                     |                                                                                                                                  |   |
|                                     | Condensed Consolidated Statements of Operations for the Three Months Ended September 25, 2011 and September 26, 2010                  | 4      |
|                                     |                                                                                                                                  |   |
|                                     | Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended September 25, 2011 and September 26, 2010 | 5      |
|                                     |                                                                                                                                  |   |
|                                     | Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended September 25, 2011              | 6      |
|                                     |                                                                                                                                  |   |
|                                     | Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 25, 2011 and September 26, 2010                  | 7      |
|                                     |                                                                                                                                  |   |
|                                     | Notes to Condensed Consolidated Financial Statements                                                                                  | 8      |
|                                     |                                                                                                                                  |   |
| Item 2.                                  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                           | 32     |
|                                     |                                                                                                                                  |   |
| Item 3.                                  | Quantitative and Qualitative Disclosures about Market Risk                                                                            | 44     |
|                                     |                                                                                                                                  |   |
| Item 4.                                  | Controls and Procedures                                                                                                               | 46     |
|                                     |                                                                                                                                  |   |
| Part II.  Other Information    |
|                                     |                                                                                                                                  |   |
| Item 1.                                  | Legal Proceedings                                                                                                                     | 46     |
|                                     |                                                                                                                                  |   |
| Item 1A.                                 | Risk Factors                                                                                                                          | 46     |
|                                     |                                                                                                                                  |   |
| Item 2.                                  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                           | 46     |
|                                     |                                                                                                                                  |   |
| Item 3.                                  | Defaults Upon Senior Securities                                                                                                       | 46     |
|                                     |                                                                                                                                  |   |
| Item 4.                                  | [Removed and Reserved.]                                                                                                               | 46     |
|                                     |                                                                                                                                  |   |
| Item 5.                                  | Other Information                                                                                                                     | 46     |
|                                     |                                                                                                                                  |   |
| Item 6.                                  | Exhibits                                                                                                                              | 47     |

----

|                                                                                                  |   | September 25, 2011 |    |   | June 26, 2011 |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|---------------|--------|
| ASSETS                                                                                                |   |               |    |   |          |   |
| Cash and cash equivalents                                                                             |   | $                  | 19,821  |   |          | $      | 27,490 |   |
| Receivables, net                                                                                      |   |               | 95,778  |   |          |   | 100,175 |   |
| Inventories                                                                                           |   |               | 135,976 |   |          |   | 134,883 |   |
| Income taxes receivable                                                                               |   |               | 769     |   |          |   | 578 |   |
| Deferred income taxes                                                                                 |   |               | 4,390   |   |          |   | 5,712 |   |
| Other current assets                                                                                  |   |               | 4,841   |   |          |   | 5,231 |   |
| Total current assets                                                                                  |   |               | 261,575 |   |          |   | 274,069 |   |
|                                                                                                  |   |               |    |   |          |   |   |   |
| Property, plant and equipment, net                                                                    |   |               | 141,797 |   |          |   | 151,027 |   |
| Intangible assets, net                                                                                |   |               | 11,027  |   |          |   | 11,612 |   |
| Investments in unconsolidated affiliates                                                              |   |               | 92,340  |   |          |   | 91,258 |   |
| Other non-current assets                                                                              |   |               | 8,606   |   |          |   | 9,410 |   |
| Total assets                                                                                          |   | $                  | 515,345 |   |          | $      | 537,376 |   |
|                                                                                                  |   |               |    |   |          |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                            |   |               |    |   |          |   |   |   |
| Accounts payable                                                                                      |   | $                  | 46,036  |   |          | $      | 42,842 |   |
| Accrued expenses                                                                                      |   |               | 16,008  |   |          |   | 17,495 |   |
| Income taxes payable                                                                                  |   |               | 767     |   |          |   | 421 |   |
| Current portion of long-term debt                                                                     |   |               | 348     |   |          |   | 342 |   |
| Total current liabilities                                                                             |   |               | 63,159  |   |          |   | 61,100 |   |
| Long-term debt                                                                                        |   |               | 163,622 |   |          |   | 168,322 |   |
| Other long-term liabilities                                                                           |   |               | 3,947   |   |          |   | 4,007 |   |
| Deferred income taxes                                                                                 |   |               | 2,453   |   |          |   | 4,292 |   |
| Total liabilities                                                                                     |   |               | 233,181 |   |          |   | 237,721 |   |
| Commitments and contingencies                                                                         |   |               |    |   |          |   |   |   |
|                                                                                                  |   |               |    |   |          |   |   |   |
| Common stock, $0.10 par (500,000,000 shares authorized, 20,086,094 and 20,080,253 shares outstanding) |   |               | 2,009   |   |          |   | 2,008 |   |
| Capital in excess of par value                                                                        |   |               | 33,015  |   |          |   | 32,599 |   |
| Retained earnings                                                                                     |   |               | 241,558 |   |          |   | 241,272 |   |
| Accumulated other comprehensive income                                                                |   |               | 5,582   |   |          |   | 23,776 |   |
| Total shareholders’ equity                                                                      |   |               | 282,164 |   |          |   | 299,655 |   |
| Total liabilities and shareholders’ equity                                                      |   | $                  | 515,345 |   |          | $      | 537,376 |   |

----

|                                            |   | For the Three Months Ended |    |
|-------------------------------------------------|--------|----------------------------|---------|
|                                            |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Net sales                                       |   | $                          | 171,013 |   |   | $ | 175,092 |   |
| Cost of sales                                   |   |                       | 159,183 |   |   |   | 153,546 |   |
| Gross profit                                    |   |                       | 11,830  |   |   |   | 21,546 |   |
| Restructuring charges                           |   |                       | — |   |   |   | 363 |   |
| Selling, general and administrative expenses    |   |                       | 10,371  |   |   |   | 11,510 |   |
| Provision (benefit) for bad debts               |   |                       | 205     |   |   |   | (41 | ) |
| Other operating (income) expense, net           |   |                       | (41     | ) |   |   | 243 |   |
| Operating income                                |   |                       | 1,295   |   |   |   | 9,471 |   |
|                                            |   |                       |    |   |   |   |   |   |
| Interest income                                 |   |                       | (647    | ) |   |   | (743 | ) |
| Interest expense                                |   |                       | 4,380   |   |   |   | 5,269 |   |
| Loss on extinguishment of debt                  |   |                       | 462     |   |   |   | 1,144 |   |
| Equity in earnings of unconsolidated affiliates |   |                       | (3,459  | ) |   |   | (8,951 | ) |
| Income before income taxes                      |   |                       | 559     |   |   |   | 12,752 |   |
| Provision for income taxes                      |   |                       | 273     |   |   |   | 2,517 |   |
| Net income                                      |   | $                          | 286     |   |   | $ | 10,235 |   |
|                                            |   |                       |    |   |   |   |   |   |
| Net income per common share:                    |   |                       |    |   |   |   |   |   |
| Basic                                           |   | $                          | 0.01    |   |   | $ | 0.51 |   |
|                                            |   |                       |    |   |   |   |   |   |
| Diluted                                         |   | $                          | 0.01    |   |   | $ | 0.50 |   |

----

|                                                                     |   | For the Three Months Ended |    |
|--------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                     |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Net income                                                               |   | $                          | 286     |   |   | $ | 10,235 |   |
| Other comprehensive income (loss) before tax:                            |   |                       |    |   |   |   |   |   |
| Foreign currency adjustments                                             |   |                       | (17,225 | ) |   |   | 6,707 |   |
| Loss on cash flow hedge                                                  |   |                       | (969    | ) |   |   | — |   |
| Other comprehensive income (loss), before tax                            |   |                       | (18,194 | ) |   |   | 6,707 |   |
|                                                                     |   |                       |    |   |   |   |   |   |
| Income tax expense related to items of other comprehensive income (loss) |   |                       | — |   |   |   | — |   |
| Other comprehensive income (loss), net of tax                            |   |                       | (18,194 | ) |   |   | 6,707 |   |
| Comprehensive income (loss)                                              |   | $                          | (17,908 | ) |   | $ | 16,942 |   |

----

|                       |   | Shares Outstanding |    |   | Common Stock |   |    | Capital in Excess of Par Value (1) |   |   | Retained Earnings |   |   | Accumulated Other ComprehensiveIncome |    |   | Total Shareholders’ Equity |   |
|----------------------------|--------|--------------------|---------|--------|--------------|--------|---------|------------------------------------|--------|--------|-------------------|--------|--------|---------------------------------------|---------|--------|----------------------------------|--------|
| Balance June 26, 2011      |   |               | 20,080  |   |         | $      | 2,008   |                               |   | $      | 32,599            |   |   |                                  | 241,272 |   |                             |   | 23,776 |   |   |   | 299,655 |   |
| Options exercised          |   |               | 6       |   |         |   | 1       |                               |   |   | 48                |   |   |                                  | — |   |                             |   | — |   |   |   | 49 |   |
| Stock-based compensation   |   |               | — |   |         |   | — |                               |   |   | 368               |   |   |                                  | — |   |                             |   | — |   |   |   | 368 |   |
| Other comprehensive loss   |   |               | — |   |         |   | — |                               |   |   | —           |   |   |                                  | — |   |                             |   | (18,194 | ) |   |   | (18,194 | ) |
| Net income                 |   |               | — |   |         |   | — |                               |   |   | —           |   |   |                                  | 286     |   |                             |   | — |   |   |   | 286 |   |
| Balance September 25, 2011 |   |               | 20,086  |   |         | $      | 2,009   |                               |   | $      | 33,015            |   |   | $                                     | 241,558 |   |                             | $      | 5,582 |   |   | $ | 282,164 |   |

----

|                                                                                  |   | For the Three Months Ended |    |
|---------------------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                                  |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Cash and cash equivalents at beginning of year                                        |   | $                          | 27,490  |   |   | $ | 42,691 |   |
| Operating activities:                                                                 |   |                       |    |   |   |   |   |   |
| Net income                                                                            |   |                       | 286     |   |   |   | 10,235 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:     |   |                       |    |   |   |   |   |   |
| Equity in earnings of unconsolidated affiliates                                       |   |                       | (3,459  | ) |   |   | (8,951 | ) |
| Dividends received from unconsolidated affiliates                                     |   |                       | 2,005   |   |   |   | 2,532 |   |
| Depreciation and amortization                                                         |   |                       | 6,782   |   |   |   | 6,743 |   |
| Net loss (gain) on sale of assets                                                     |   |                       | 64      |   |   |   | (65 | ) |
| Loss on extinguishment of debt                                                        |   |                       | 462     |   |   |   | 1,144 |   |
| Non-cash compensation expense                                                         |   |                       | 243     |   |   |   | 347 |   |
| Deferred income taxes                                                                 |   |                       | (718    | ) |   |   | 225 |   |
| Other                                                                                 |   |                       | (1      | ) |   |   | 7 |   |
| Changes in assets and liabilities, excluding effects of foreign currency adjustments: |   |                       |    |   |   |   |   |   |
| Receivables                                                                           |   |                       | 403     |   |   |   | (2,751 | ) |
| Inventories                                                                           |   |                       | (7,386  | ) |   |   | (7,620 | ) |
| Other current assets and income taxes receivable                                      |   |                       | (129    | ) |   |   | 107 |   |
| Accounts payable and accrued expenses                                                 |   |                       | 2,622   |   |   |   | 1,284 |   |
| Income taxes payable                                                                  |   |                       | 647     |   |   |   | 774 |   |
| Net cash provided by operating activities                                             |   |                       | 1,821   |   |   |   | 4,011 |   |
| Investing activities:                                                                 |   |                       |    |   |   |   |   |   |
| Capital expenditures                                                                  |   |                       | (1,122  | ) |   |   | (5,495 | ) |
| Investments in unconsolidated affiliates                                              |   |                       | (360    | ) |   |   | (225 | ) |
| Proceeds from sale of assets                                                          |   |                       | 173     |   |   |   | 180 |   |
| Net cash used in investing activities                                                 |   |                       | (1,309  | ) |   |   | (5,540 | ) |
| Financing activities:                                                                 |   |                       |    |   |   |   |   |   |
| Payments of notes payable                                                             |   |                       | (10,288 | ) |   |   | (15,863 | ) |
| Payments on revolving credit facility                                                 |   |                       | (53,500 | ) |   |   | (40,525 | ) |
| Proceeds from borrowings on revolving credit facility                                 |   |                       | 58,800  |   |   |   | 40,525 |   |
| Proceeds from stock option exercises                                                  |   |                       | 49      |   |   |   | — |   |
| Debt financing fees                                                                   |   |                       | — |   |   |   | (821 | ) |
| Net cash used in financing activities                                                 |   |                       | (4,939  | ) |   |   | (16,684 | ) |
|                                                                                  |   |                       |    |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                          |   |                       | (3,242  | ) |   |   | 1,796 |   |
| Net decrease in cash and cash equivalents                                             |   |                       | (7,669  | ) |   |   | (16,417 | ) |
| Cash and cash equivalents at end of period                                            |   | $                          | 19,821  |   |   | $ | 26,274 |   |

----

|                                 |   | September 25, 2011 |   |   | June 26, 2011 |   |
|--------------------------------------|--------|--------------------|--------|--------|---------------|--------|
| Customer receivables                 |   | $                  | 96,212 |   |          | $      | 100,893 |   |
| Allowance for uncollectible accounts |   |               | (1,199 | )      |          |   | (1,147 | ) |
| Reserves for yarn quality claims     |   |               | (1,167 | )      |          |   | (1,101 | ) |
| Net customer receivables             |   |               | 93,846 |   |          |   | 98,645 |   |
| Related parties receivables          |   |               | 599    |   |          |   | 512 |   |
| Other receivables                    |   |               | 1,333  |   |          |   | 1,018 |   |
| Total receivables, net               |   | $                  | 95,778 |   |          | $      | 100,175 |   |

----

|                          |   | Allowance for Uncollectible Accounts |   |   | Reserves for Yarn Quality Claims |   |
|-------------------------------|--------|--------------------------------------|--------|--------|----------------------------------|--------|
| Balance at June 26, 2011      |   | $                                    | (1,147 | )      |                             | $      | (1,101 | ) |
| Charged to costs and expenses |   |                                 | (205   | )      |                             |   | (367 | ) |
| Charged to other accounts     |   |                                 | 80     |   |                             |   | 170 |   |
| Deductions                    |   |                                 | 73     |   |                             |   | 131 |   |
| Balance at September 25, 2011 |   | $                                    | (1,199 | )      |                             | $      | (1,167 | ) |

|               |   | September 25, 2011 |    |   | June 26, 2011 |   |
|--------------------|--------|--------------------|---------|--------|---------------|--------|
| Raw materials      |   | $                  | 50,134  |   |          | $      | 52,387 |   |
| Supplies           |   |               | 5,695   |   |          |   | 6,016 |   |
| Work in process    |   |               | 6,330   |   |          |   | 7,000 |   |
| Finished goods     |   |               | 77,788  |   |          |   | 74,399 |   |
| Gross inventories  |   |               | 139,947 |   |          |   | 139,802 |   |
| Inventory reserves |   |               | (3,971  | )      |          |   | (4,919 | ) |
| Total inventories  |   |               | 135,976 |   |          | $      | 134,883 |   |

|                         |   | September 25, 2011 |   |   | June 26, 2011 |   |
|------------------------------|--------|--------------------|--------|--------|---------------|--------|
| Value added taxes receivable |   | $                  | 2,123  |   |          | $      | 2,971 |   |
| Prepaid expenses             |   |               | 1,320  |   |          |   | 1,282 |   |
| Vendor deposits              |   |               | 1,204  |   |          |   | 921 |   |
| Other expenses               |   |               | 194    |   |          |   | 57 |   |
| Total other current assets   |   | $                  | 4,841  |   |          | $      | 5,231 |   |

----

|                                                 |   | September 25, 2011 |     |   | June 26, 2011 |   |
|------------------------------------------------------|--------|--------------------|----------|--------|---------------|--------|
| Land                                                 |   | $                  | 3,275    |   |          | $      | 3,454 |   |
| Land improvements                                    |   |               | 11,400   |   |          |   | 11,400 |   |
| Buildings and improvements                           |   |               | 147,335  |   |          |   | 151,484 |   |
| Assets under capital lease                           |   |               | 9,520    |   |          |   | 9,520 |   |
| Machinery and equipment                              |   |               | 540,183  |   |          |   | 545,279 |   |
| Computers, software and office equipment             |   |               | 17,770   |   |          |   | 19,585 |   |
| Construction in progress                             |   |               | 2,280    |   |          |   | 4,583 |   |
| Transportation equipment                             |   |               | 4,850    |   |          |   | 5,162 |   |
| Gross property, plant and equipment                  |   |               | 736,613  |   |          |   | 750,467 |   |
| Less: accumulated depreciation                       |   |               | (586,031 | )      |          |   | (590,878 | ) |
| Less: accumulated amortization – capital lease |   |               | (8,785   | )      |          |   | (8,562 | ) |
| Property, plant and equipment, net                   |   | $                  | 141,797  |   |          | $      | 151,027 |   |

|                                             |   | For the Three Months Ended |    |
|--------------------------------------------------|--------|----------------------------|---------|
|                                             |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Depreciation expense                             |   | $                          | 5,905   |   |   | $ | 5,752 |   |
| Internal software development costs amortization |   |                       | 71      |   |   |   | 99 |   |
| Repair and maintenance expenses                  |   |                       | 4,328   |   |   |   | 4,432 |   |
| Capitalized interest                             |   |                       | — |   |   |   | — |   |

|                                    |   | September 25, 2011 |   |   | June 26, 2011 |   |
|-----------------------------------------|--------|--------------------|--------|--------|---------------|--------|
| Internal software development costs     |   | $                  | 1,900  |   |          | $      | 1,900 |   |
| Accumulated amortization                |   |               | (1,639 | )      |          |   | (1,568 | ) |
| Net internal software development costs |   | $                  | 261    |   |          | $      | 332 |   |

|                                              |   | September 25, 2011 |    |   | June 26, 2011 |   |
|---------------------------------------------------|--------|--------------------|---------|--------|---------------|--------|
| Customer list                                     |   | $                  | 22,000  |   |          | $      | 22,000 |   |
| Non-compete agreements                            |   |               | 4,000   |   |          |   | 4,000 |   |
| Total intangible assets, gross                    |   |               | 26,000  |   |          |   | 26,000 |   |
|                                              |   |               |    |   |          |   |   |   |
| Accumulated amortization - customer list          |   |               | (12,640 | )      |          |   | (12,134 | ) |
| Accumulated amortization - non-compete agreements |   |               | (2,333  | )      |          |   | (2,254 | ) |
| Total accumulated amortization                    |   |               | (14,973 | )      |          |   | (14,388 | ) |
| Intangible assets, net                            |   | $                  | 11,027  |   |          | $      | 11,612 |   |

----

|                                         |   | For the Three Months Ended |   |
|----------------------------------------------|--------|----------------------------|--------|
|                                         |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Customer list amortization expense           |   | $                          | 506    |   |   | $ | 543 |   |
| Non-compete amortization expense             |   |                       | 79     |   |   |   | 95 |   |
|    Total amortization expense |   | $                          | 585    |   |   | $ | 638 |   |

|                                            |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | 2015  |   |   | 2016   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------|--------|--------|--------|--------|
| Customer list                                   |   | $      | 2,022  |   |   | $      | 1,837  |   |   | $      | 1,481 |   |   | $      | 1,215  |   |   | $ | 969 |   |
| Non-compete agreements                          |   |   | 317    |   |   |   | 317    |   |   |   | 317   |   |   |   | 317    |   |   |   | 317 |   |
|    Total intangible amortization |   | $      | 2,339  |   |   | $      | 2,154  |   |   | $      | 1,798 |   |   | $      | 1,532  |   |   | $ | 1,286 |   |

|                           |   | September 25, 2011 |   |   | June 26, 2011 |   |
|--------------------------------|--------|--------------------|--------|--------|---------------|--------|
| Long-term deposits             |   | $                  | 5,310  |   |          | $      | 5,709 |   |
| Debt financing fees            |   |               | 2,849  |   |          |   | 3,245 |   |
| Other                          |   |               | 447    |   |          |   | 456 |   |
| Total other non-current assets |   | $                  | 8,606  |   |          | $      | 9,410 |   |

|                             |   | September 25, 2011 |   |   | June 26, 2011 |   |
|----------------------------------|--------|--------------------|--------|--------|---------------|--------|
| Payroll and fringe benefit costs |   | $                  | 5,748  |   |          | $      | 11,119 |   |
| Utilities                        |   |               | 2,467  |   |          |   | 2,237 |   |
| Interest                         |   |               | 5,283  |   |          |   | 1,900 |   |
| Property taxes                   |   |               | 1,327  |   |          |   | 885 |   |
| Retiree medical liability        |   |               | 178    |   |          |   | 202 |   |
| Other                            |   |               | 1,005  |   |          |   | 1,152 |   |
| Total accrued expenses           |   | $                  | 16,008 |   |          | $      | 17,495 |   |

|                           |   | For the Three Months Ended |   |
|--------------------------------|--------|----------------------------|--------|
|                           |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Matching contribution expenses |   | $                          | 558    |   |   | $ | 630 |   |

----

|                              |   | September 25, 2011 |    |   | June 26, 2011 |   |
|-----------------------------------|--------|--------------------|---------|--------|---------------|--------|
| Notes payable                     |   | $                  | 123,722 |   |          | $      | 133,722 |   |
| Revolving credit facility         |   |               | 39,900  |   |          |   | 34,600 |   |
| Capital lease obligation          |   |               | 348     |   |          |   | 342 |   |
| Total debt                        |   |               | 163,970 |   |          |   | 168,664 |   |
| Current portion of long-term debt |   |               | (348    | )      |          |   | (342 | ) |
| Total long-term debt              |   | $                  | 163,622 |   |          | $      | 168,322 |   |

| Date                  |   | PrincipalAmount |   | Redemption Price |     | Premium (Discount) |   | Costs andOther Fees |   | Loss / (Gain) |
|-----------------------|--------|-----------------|--------|------------------|----------|--------------------|--------|---------------------|--------|---------------|
| August 5, 2011        |   | $               | 10,000 |             | 102.875% |               | $      | 288                 |   | $             | 174 |   | $ | 462 |
| Total – FY 2012 |   | $               | 10,000 |             |     |               | $      | 288                 |   | $             | 174 |   | $ | 462 |
|                  |   |            |   |             |     |               |   |                |   |          |   |   |   |   |
| June 30, 2010         |   | $               | 15,000 |             | 105.75%  |               | $      | 862                 |   | $             | 282 |   | $ | 1,144 |
| February 16, 2011     |   |            | 30,000 |             | 105.75%  |               |   | 1,725               |   |          | 468 |   |   | 2,193 |
| Total – FY 2011 |   | $               | 45,000 |             |     |               | $      | 2,587               |   | $             | 750 |   | $ | 3,337 |
|                  |   |            |   |             |     |               |   |                |   |          |   |   |   |   |
| September 15, 2009    |   | $               | 500    |             | 86.75%   |               | $      | (66)                |   | $             | 12 |   | $ | (54) |
| Total – FY 2010 |   | $               | 500    |             |     |               | $      | (66)                |   | $             | 12 |   | $ | (54) |
|                  |   |            |   |             |     |               |   |                |   |          |   |   |   |   |
| April 3, 2009         |   | $               | 8,778  |             | 100.00%  |               | $      | —             |   | $             | 226 |   | $ | 226 |
| June 3, 2009          |   |            | 2,000  |             | 73.75%   |               |   | (525)               |   |          | 48 |   |   | (477) |
| Total – FY 2009 |   | $               | 10,778 |             |     |               | $      | (525)               |   | $             | 274 |   | $ | (251) |

----

|   | 2012 |   |   | 2013 |    |   | 2014   |   |    | 2015   |   |   | 2016    |   |   | Thereafter |   |   | Total  |   |
|--------|------|--------|--------|------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|------------|--------|--------|--------|--------|
| $      | 348  |   |   | $    | — |   |   | $      | 123,722 |   |   | $      | — |   |   | $          | 39,900 |   |   | $      | — |   |   | $ | 163,970 |   |

|             |   | For the Three Months Ended |   |
|------------------|--------|----------------------------|--------|
|             |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Interest expense |   | $                          | 221    |   |   | $ | 254 |   |

|                                      |   | September 25, 2011 |   |   | June 26, 2011 |   |
|-------------------------------------------|--------|--------------------|--------|--------|---------------|--------|
| Deferred compensation plan                |   | $                  | 1,741  |   |          | $      | 1,866 |   |
| Retiree medical liability                 |   |               | 696    |   |          |   | 696 |   |
| Derivative instruments                    |   |               | 486    |   |          |   | 408 |   |
| Long-term portion of income taxes payable |   |               | 868    |   |          |   | 868 |   |
| Non-income related taxes                  |   |               | 156    |   |          |   | 169 |   |
| Total other long-term liabilities         |   | $                  | 3,947  |   |          | $      | 4,007 |   |

----

----

|                                                |   | September 25, 2011 |   |   | June 26, 2011 |   |
|-----------------------------------------------------|--------|--------------------|--------|--------|---------------|--------|
| Foreign currency translation adjustments            |   | $                  | 6,267  |   |          | $      | 26,621 |   |
| Loss on effective portion of derivative instruments |   |               | (2,023 | )      |          |   | (1,054 | ) |
| Foreign currency gain (loss) on intercompany loan   |   |               | 1,338  |   |          |   | (1,791 | ) |
| Accumulated other comprehensive income              |   | $                  | 5,582  |   |          | $      | 23,776 |   |

----

|                                                                         |   | For the Three Months Ended |   |
|------------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                         |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Basic EPS:                                                                   |   |                       |   |   |   |   |
| Net income                                                                   |   | $                          | 286    |   |   | $ | 10,235 |   |
| Weighted average common shares outstanding                                   |   |                       | 20,086 |   |   |   | 20,057 |   |
| Basic EPS                                                                    |   | $                          | 0.01   |   |   | $ | 0.51 |   |
|                                                                         |   |                       |   |   |   |   |   |   |
| Diluted EPS:                                                                 |   |                       |   |   |   |   |   |   |
| Net income                                                                   |   | $                          | 286    |   |   | $ | 10,235 |   |
| Weighted average common shares outstanding                                   |   |                       | 20,086 |   |   |   | 20,057 |   |
| Net potential common share equivalents – stock options and RSU’s |   |                       | 345    |   |   |   | 322 |   |
| Weighted average common shares outstanding                                   |   |                       | 20,431 |   |   |   | 20,379 |   |
| Diluted EPS                                                                  |   | $                          | 0.01   |   |   | $ | 0.50 |   |
|                                                                         |   |                       |   |   |   |   |   |   |
| Excluded from the calculation of common share equivalents:                   |   |                       |   |   |   |   |   |   |
| Anti-dilutive common share equivalents                                       |   |                       | 406    |   |   |   | 231 |   |
|                                                                         |   |                       |   |   |   |   |   |   |
| Excluded from the calculation of diluted shares:                             |   |                       |   |   |   |   |   |   |
| Unvested options that vest upon achievement of certain market conditions     |   |                       | 577    |   |   |   | 583 |   |

----

| As of September 25, 2011:  |   |   | Notional Amount |   |   | USD Equivalent |   | Balance Sheet Location |   | Fair value                  |   |
|----------------------------|--------|--------|-----------------|--------|--------|----------------|--------|------------------------|--------|-----------------------------|--------|
| Foreign exchange contracts | MXN    |   | $               | 3,100  |   |           | $      | 253                    |   | Other current assets        |   | $ | 28 |   |
| Interest rate swaps        | USD    |   | $               | 35,000 |   |           | $      | 35,000                 |   | Other long-term liabilities |   | $ | (486 | ) |

| As of June 26, 2011:       |   |   | Notional Amount |   |   | USD Equivalent |   | Balance Sheet Location |   | Fair value                  |   |
|----------------------------|--------|--------|-----------------|--------|--------|----------------|--------|------------------------|--------|-----------------------------|--------|
| Foreign exchange contracts | MXN    |   | $          | 9,200  |   |           | $      | 770                    |   | Accrued expenses            |   | $ | (2 | ) |
| Interest rate swaps        | USD    |   | $               | 25,000 |   |           | $      | 25,000                 |   | Other long-term liabilities |   | $ | (408 | ) |

|                                       |                             |   | For the Three Months Ended |    |
|--------------------------------------------|----------------------------------|--------|----------------------------|---------|
|                                       |                             |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Derivatives not designated as hedges:      | Classification                   |   |                       |    |   |   |   |
| Foreign exchange contracts – MXN/USD | Other operating (income) expense |   | $                          | (29     | ) |   | $ | 18 |   |
| Foreign exchange contracts – EU/USD  | Other operating (income) expense |   |                       | — |   |   |   | (238 | ) |
| Total (gain) loss recognized in income     |                             |   | $                          | (29     | ) |   | $ | (220 | ) |

| As of September 25, 2011:                         |   | Level 1 |    |   | Level 2 |   |   | Level 3 |   |
|---------------------------------------------------|--------|---------|---------|--------|---------|--------|--------|---------|--------|
| Assets at fair value:                             |   |    |    |   |    |   |   |    |   |
| Derivatives related to foreign exchange contracts |   | $       | — |   |    | $      | 28     |    |   | $ | — |   |
| Total assets at fair value                        |   | $       | — |   |    | $      | 28     |    |   | $ | — |   |
|                                              |   |    |    |   |    |   |   |    |   |   |   |   |
| Liabilities at fair value:                        |   |    |    |   |    |   |   |    |   |   |   |   |
| Derivatives related to interest rate swaps        |   |    | — |   |    |   | (486   | )       |   |   | — |   |
| Total liabilities at fair value                   |   | $       | — |   |    | $      | (486   | )       |   | $ | — |   |

----

| As of June 26, 2011:                              |   | Level 1 |    |   | Level 2 |   |   | Level 3 |   |
|---------------------------------------------------|--------|---------|---------|--------|---------|--------|--------|---------|--------|
| Liabilities at fair value:                        |   |    |    |   |    |   |   |    |   |
| Derivatives related to foreign exchange contracts |   |    | — |   |    |   | (2     | )       |   |   | — |   |
| Derivatives related to interest rate swaps        |   |    | — |   |    |   | (408   | )       |   |   | — |   |
| Total liabilities at fair value                   |   | $       | — |   |    | $      | (410   | )       |   | $ | — |   |

|                                    |   | September 25, 2011 |    |   | June 26, 2011 |   |
|-----------------------------------------|--------|--------------------|---------|--------|---------------|--------|
| 2014 notes – estimated fair value |   | $                  | 127,267 |   |          | $      | 138,402 |   |
| 2014 notes – carrying amount      |   |               | 123,722 |   |          |   | 133,722 |   |

|                                        |   | For the Three Months Ended |   |
|---------------------------------------------|--------|----------------------------|--------|
|                                        |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Net (gain) loss on sale of assets           |   | $                          | 64     |   |   | $ | (65 | ) |
| Foreign currency transaction (gains) losses |   |                       | (21    | ) |   |   | 364 |   |
| Other, net                                  |   |                       | (84    | ) |   |   | (56 | ) |
| Other operating (income) expense, net       |   | $                          | (41    | ) |   | $ | 243 |   |

----

| Underlying equity at September 2011                                     |   | $      | 102,786 |   |
|-------------------------------------------------------------------------|--------|--------|---------|--------|
| Initial excess capital contributions                                    |   |   | 53,363  |   |
| Impairment charge recorded in fiscal year 2007                          |   |   | (74,106 | )      |
| Anti-trust lawsuit against PAL in which the Company did not participate |   |   | 2,652   |   |
| EAP adjustments                                                         |   |   | (809    | )      |
| Investment at September 2011                                            |   | $      | 83,886  |   |

----

|        |   | For the Three Months Ended |   |
|-------------|--------|----------------------------|--------|
|        |   | September 25, 2011         |   |   | September 26, 2010 |   |
| UNF         |   | $                          | 5,486  |   |   | $ | 5,953 |   |
| UNF America |   |                       | 3,716  |   |   |   | 4,701 |   |
| Total       |   | $                          | 9,202  |   |   | $ | 10,654 |   |

|                                                  |   | As of September 25, 2011 |    |
|-------------------------------------------------------|--------|--------------------------|---------|
|                                                  |   | PAL                      |    |   | Other |   |   | Total |   |
| Current assets                                        |   | $                        | 372,686 |   |   | $ | 11,566 |   |   | $ | 384,252 |   |
| Noncurrent assets                                     |   |                     | 149,852 |   |   |   | 11,150 |   |   |   | 161,002 |   |
| Current liabilities                                   |   |                     | 86,428  |   |   |   | 4,862 |   |   |   | 91,290 |   |
| Noncurrent liabilities                                |   |                     | 133,800 |   |   |   | — |   |   |   | 133,800 |   |
| Shareholders’ equity and capital accounts       |   |                     | 302,310 |   |   |   | 17,854 |   |   |   | 320,164 |   |
|                                                  |   |                     |    |   |   |   |   |   |   |   |   |   |
| The Company’s portion of undistributed earnings |   |                     | 14,459  |   |   |   | 937 |   |   |   | 15,396 |   |

----

|                                            |   | As of June 26, 2011 |    |
|-------------------------------------------------|--------|---------------------|---------|
|                                            |   | PAL                 |    |   | Other |   |   | Total |   |
| Current assets                                  |   | $                   | 398,338 |   |   | $ | 13,405 |   |   | $ | 411,743 |   |
| Noncurrent assets                               |   |                | 155,505 |   |   |   | 9,588 |   |   |   | 165,093 |   |
| Current liabilities                             |   |                | 100,284 |   |   |   | 5,588 |   |   |   | 105,872 |   |
| Noncurrent liabilities                          |   |                | 154,054 |   |   |   | — |   |   |   | 154,054 |   |
| Shareholders’ equity and capital accounts |   |                | 299,505 |   |   |   | 17,405 |   |   |   | 316,910 |   |

|                                       |   | For the Three Months Ended September 25, 2011 |    |
|--------------------------------------------|--------|-----------------------------------------------|---------|
|                                       |   | PAL                                           |    |   | Other |   |   | Total |   |
| Net sales                                  |   | $                                             | 346,075 |   |   | $ | 10,267 |   |   | $ | 356,342 |   |
| Gross profit                               |   |                                          | 13,077  |   |   |   | 664 |   |   |   | 13,741 |   |
| Income (loss) from operations              |   |                                          | 11,115  |   |   |   | (201 | ) |   |   | 10,914 |   |
| Net income (loss)                          |   |                                          | 11,325  |   |   |   | (245 | ) |   |   | 11,080 |   |
| Depreciation and amortization              |   |                                          | 9,295   |   |   |   | 56 |   |   |   | 9,351 |   |
|                                       |   |                                          |    |   |   |   |   |   |   |   |   |   |
| Cash received by PAL under EAP program     |   |                                          | 6,171   |   |   |   | — |   |   |   | 6,171 |   |
| Earnings recognized by PAL for EAP program |   |                                          | 5,956   |   |   |   | — |   |   |   | 5,956 |   |
|                                       |   |                                          |    |   |   |   |   |   |   |   |   |   |
| Dividends and cash distributions received  |   |                                          | 2,005   |   |   |   | — |   |   |   | 2,005 |   |

|                                       |   | For the Three Months Ended September 26, 2010 |    |
|--------------------------------------------|--------|-----------------------------------------------|---------|
|                                       |   | PAL                                           |    |   | Other |   |   | Total |   |
| Net sales                                  |   | $                                             | 209,801 |   |   | $ | 11,576 |   |   | $ | 221,377 |   |
| Gross profit                               |   |                                          | 27,092  |   |   |   | 2,007 |   |   |   | 29,099 |   |
| Income from operations                     |   |                                          | 23,910  |   |   |   | 1,262 |   |   |   | 25,172 |   |
| Net income                                 |   |                                          | 25,393  |   |   |   | 986 |   |   |   | 26,379 |   |
| Depreciation and amortization              |   |                                          | 6,523   |   |   |   | 342 |   |   |   | 6,865 |   |
|                                       |   |                                          |    |   |   |   |   |   |   |   |   |   |
| Cash received by PAL under EAP program     |   |                                          | 7,124   |   |   |   | — |   |   |   | 7,124 |   |
| Earnings recognized by PAL for EAP program |   |                                          | 18,376  |   |   |   | — |   |   |   | 18,376 |   |
|                                       |   |                                          |    |   |   |   |   |   |   |   |   |   |
| Dividends and cash distributions received  |   |                                          | 2,532   |   |   |   | — |   |   |   | 2,532 |   |

|                       |   | For the Three Months Ended |    |
|----------------------------|--------|----------------------------|---------|
|                       |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Equipment relocation costs |   | $                          | — |   |   | $ | 363 |   |
| Reinstallation costs       |   |                       | — |   |   |   | — |   |
| Restructuring charges      |   | $                          | — |   |   | $ | 363 |   |

----

|                                                                                       |   | September 25, 2011 |    |   | June 26, 2011 |   |
|--------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|---------------|--------|
| Related Party Receivables:                                                                 |   |               |    |   |          |   |
| Dillon Yarn Corporation                                                                    |   | $                  | 11      |   |          | $      | 6 |   |
| Cupron Medical, Inc.                                                                       |   |               | 95      |   |          |   | — |   |
| American Drawtech Company, Inc.                                                            |   |               | 493     |   |          |   | 506 |   |
|     Total related party receivables (included within Receivables, net) |   | $                  | 599     |   |          | $      | 512 |   |
| Related Party Payables:                                                                    |   |               |    |   |          |   |   |   |
| Dillon Yarn Corporation                                                                    |   | $                  | 221     |   |          | $      | 276 |   |
| American Drawtech Company, Inc.                                                            |   |               | — |   |          |   | 11 |   |
| Salem Leasing Corporation                                                                  |   |               | 245     |   |          |   | 280 |   |
|     Total related party payables (included within Accounts payable)    |   | $                  | 466     |   |          | $      | 567 |   |

----

|                      |                                |   | For the Three Months Ended |   |
|---------------------------|-------------------------------------|--------|----------------------------|--------|
| Affiliated Entity         | Transaction Type                    |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Dillon Yarn Corporation   | Costs under Sales Service Agreement |   | $                          | 250    |   |   | $ | 325 |   |
| Dillon Yarn Corporation   | Sales                               |   |                       | 22     |   |   |   | 5 |   |
| Dillon Yarn Corporation   | Yarn Purchases                      |   |                       | 871    |   |   |   | 593 |   |
| American Drawtech Company | Sales                               |   |                       | 1,201  |   |   |   | 538 |   |
| American Drawtech Company | Yarn Purchases                      |   |                       | 22     |   |   |   | 28 |   |
| Salem Leasing Corporation | Transportation Equipment Costs      |   |                       | 753    |   |   |   | 784 |   |
| Cupron Medical, Inc.      | Sales                               |   |                       | 96     |   |   |   | — |   |

|   | · | The polyester segment manufactures recycled Chip, POY, textured, dyed, twisted and beamed yarns with sales to other yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, automotive upholstery, hosiery, home furnishings, industrial and other end-use markets.  The polyester segment consists of manufacturing operations in the U.S. and El Salvador. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The nylon segment manufactures textured nylon and covered spandex yarns with sales to knitters and weavers that produce fabric for the apparel, hosiery, sock and other end-use markets.  The nylon segment consists of manufacturing operations in the U.S. and Colombia. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The international segment’s products include textured polyester and various types of resale yarns. The international segment sells its yarns to knitters and weavers that produce fabric for the apparel, automotive upholstery, home furnishings, industrial and other end-use markets primarily in the South American and Asian regions.  The segment includes manufacturing and sales offices in Brazil and a sales office in China. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | For the Three Months Ended September 25, 2011 |    |
|---------------------------------------|--------|-----------------------------------------------|---------|
|                                  |   | Polyester                                     |    |   | Nylon |   |   | International |   |   | Total |   |
| Net sales to external customers       |   | $                                             | 92,528  |   |   | $ | 40,961 |   |   | $ | 37,524 |   |   | $ | 171,013 |   |
| Intersegment sales                    |   |                                          | 453     |   |   |   | 8 |   |   |   | — |   |   |   | 461 |   |
| Segment adjusted profit               |   |                                          | 2,426   |   |   |   | 3,024 |   |   |   | 2,564 |   |   |   | 8,014 |   |
| Segment operating profit (loss)       |   |                                          | (2,373  | ) |   |   | 2,241 |   |   |   | 1,591 |   |   |   | 1,459 |   |
| Segment depreciation and amortization |   |                                          | 4,799   |   |   |   | 783 |   |   |   | 973 |   |   |   | 6,555 |   |
| Segment assets                        |   |                                          | 224,740 |   |   |   | 82,276 |   |   |   | 98,783 |   |   |   | 405,799 |   |
| Capital expenditures                  |   |                                          | 189     |   |   |   | 71 |   |   |   | 805 |   |   |   | 1,065 |   |

|                                  |   | For the Three Months Ended September 26, 2010 |    |
|---------------------------------------|--------|-----------------------------------------------|---------|
|                                  |   | Polyester                                     |    |   | Nylon |   |   | International |   |   | Total |   |
| Net sales to external customers       |   | $                                             | 85,587  |   |   | $ | 44,173 |   |   | $ | 45,332 |   |   | $ | 175,092 |   |
| Intersegment sales                    |   |                                          | 835     |   |   |   | 489 |   |   |   | 398 |   |   |   | 1,722 |   |
| Segment adjusted profit               |   |                                          | 5,705   |   |   |   | 4,767 |   |   |   | 6,050 |   |   |   | 16,522 |   |
| Segment operating profit              |   |                                          | 612     |   |   |   | 3,913 |   |   |   | 5,148 |   |   |   | 9,673 |   |
| Segment depreciation and amortization |   |                                          | 4,730   |   |   |   | 854 |   |   |   | 902 |   |   |   | 6,486 |   |
| Restructuring charges                 |   |                                          | 363     |   |   |   | — |   |   |   | — |   |   |   | 363 |   |
| Segment assets                        |   |                                          | 207,303 |   |   |   | 86,548 |   |   |   | 118,430 |   |   |   | 412,281 |   |
| Capital expenditures                  |   |                                          | 3,043   |   |   |   | 371 |   |   |   | 1,923 |   |   |   | 5,337 |   |

----

|                                            |   | For the Three Months Ended |   |
|-------------------------------------------------|--------|----------------------------|--------|
|                                            |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Segment operating profit                        |   | $                          | 1,459  |   |   | $ | 9,673 |   |
| (Benefit) provision for bad debts               |   |                       | 205    |   |   |   | (41 | ) |
| Other operating (income) expense, net           |   |                       | (41    | ) |   |   | 243 |   |
| Operating income                                |   |                       | 1,295  |   |   |   | 9,471 |   |
| Interest income                                 |   |                       | (647   | ) |   |   | (743 | ) |
| Interest expense                                |   |                       | 4,380  |   |   |   | 5,269 |   |
| Loss on extinguishment of debt                  |   |                       | 462    |   |   |   | 1,144 |   |
| Equity in earnings of unconsolidated affiliates |   |                       | (3,459 | ) |   |   | (8,951 | ) |
| Income before income taxes                      |   | $                          | 559    |   |   | $ | 12,752 |   |

|                                                      |   | For the Three Months Ended |   |
|-----------------------------------------------------------|--------|----------------------------|--------|
|                                                      |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Segment depreciation and amortization                     |   | $                          | 6,555  |   |   |   | 6,486 |   |
| Depreciation included in other operating (income) expense |   |                       | 6      |   |   |   | 3 |   |
| Amortization included in interest expense                 |   |                       | 221    |   |   |   | 254 |   |
| Consolidated depreciation and amortization                |   | $                          | 6,782  |   |   | $ | 6,743 |   |

|                                     |   | September 25, 2011 |    |   | September 26, 2010 |   |
|------------------------------------------|--------|--------------------|---------|--------|--------------------|--------|
| Segment assets                           |   | $                  | 405,799 |   |               | $      | 412,281 |   |
| Other current corporate assets           |   |               | 4,080   |   |               |   | 2,429 |   |
| Unallocated corporate PP&E           |   |               | 9,854   |   |               |   | 10,248 |   |
| Other non-current assets                 |   |               | 3,272   |   |               |   | 3,870 |   |
| Investments in unconsolidated affiliates |   |               | 92,340  |   |               |   | 80,494 |   |
| Consolidated assets                      |   | $                  | 515,345 |   |               | $      | 509,322 |   |

|                                  | For the Three Months Ended |   |
|---------------------------------------|----------------------------|--------|
|                                  | September 25, 2011         |   | September 26, 2010 |   |
| Interest, net of capitalized interest | $                          |   | 778 |   | $ |   | 380 |   |
| Income taxes, net of refunds          |                       |   | 793 |   |   |   | 1,742 |   |

----

|   | · | Parent company, the issuer of the guaranteed obligations; |
|--------|--------|-----------------------------------------------------------|

|   | · | Guarantor subsidiaries, on a combined basis, as specified in the Indenture; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | Non-guarantor subsidiaries, on a combined basis; |
|--------|--------|--------------------------------------------------|

|   | · | Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions, (b) eliminate intercompany profit in inventory, (c) eliminate investments in its subsidiaries and (d) record consolidating entries; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Parent company, on a consolidated basis. |
|--------|--------|------------------------------------------|

----

| Balance Sheet Information as of September 25, 2011: |
|-----------------------------------------------------|

|                                             |   | Parent |    |   | Guarantor Subsidiaries |   |     | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |     |
|--------------------------------------------------|--------|--------|---------|--------|------------------------|--------|----------|----------------------------|--------|--------|--------------|--------|--------|--------------|----------|
| ASSETS                                           |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Cash and cash equivalents                        |   | $      | 2,029   |   |                   | $      | (1,883   | )                          |   | $      | 19,675       |   |   | $            | —  |   |   | $ | 19,821 |   |
| Receivables                                      |   |   | — |   |                   |   | 69,213   |                       |   |   | 26,565       |   |   |         | —  |   |   |   | 95,778 |   |
| Intercompany accounts receivable                 |   |   | 125,409 |   |                   |   | (118,485 | )                          |   |   | 946          |   |   |         | (7,870   | ) |   |   | — |   |
| Inventories                                      |   |   | — |   |                   |   | 96,063   |                       |   |   | 39,913       |   |   |         | —  |   |   |   | 135,976 |   |
| Income taxes receivable                          |   |   | 575     |   |                   |   | —  |                       |   |   | 194          |   |   |         | —  |   |   |   | 769 |   |
| Deferred income taxes                            |   |   | 2,296   |   |                   |   | —  |                       |   |   | 2,094        |   |   |         | —  |   |   |   | 4,390 |   |
| Other current assets                             |   |   | 99      |   |                   |   | 990      |                       |   |   | 3,752        |   |   |         | —  |   |   |   | 4,841 |   |
| Total current assets                             |   |   | 130,408 |   |                   |   | 45,898   |                       |   |   | 93,139       |   |   |         | (7,870   | ) |   |   | 261,575 |   |
|                                             |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Property, plant and equipment, net               |   |   | 8,833   |   |                   |   | 109,791  |                       |   |   | 23,173       |   |   |         | —  |   |   |   | 141,797 |   |
| Intangible assets, net                           |   |   | — |   |                   |   | 11,027   |                       |   |   | —      |   |   |         | —  |   |   |   | 11,027 |   |
| Investments in unconsolidated affiliates         |   |   | — |   |                   |   | 83,886   |                       |   |   | 8,454        |   |   |         | —  |   |   |   | 92,340 |   |
| Investments in consolidated subsidiaries         |   |   | 431,698 |   |                   |   | —  |                       |   |   | —      |   |   |         | (431,698 | ) |   |   | — |   |
| Intercompany notes receivable                    |   |   | — |   |                   |   | —  |                       |   |   | 19,706       |   |   |         | (19,706  | ) |   |   | — |   |
| Other non-current assets                         |   |   | 3,224   |   |                   |   | 3,048    |                       |   |   | 2,334        |   |   |         | —  |   |   |   | 8,606 |   |
| Total assets                                     |   | $      | 574,163 |   |                   | $      | 253,650  |                       |   | $      | 146,806      |   |   | $            | (459,274 | ) |   | $ | 515,345 |   |
|                                             |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY       |   |
| Accounts payable                                 |   | $      | 84      |   |                   | $      | 40,107   |                       |   | $      | 5,845        |   |   | $            | —  |   |   | $ | 46,036 |   |
| Intercompany accounts payable                    |   |   | 120,085 |   |                   |   | (119,676 | )                          |   |   | 7,456        |   |   |         | (7,865   | ) |   |   | — |   |
| Accrued expenses                                 |   |   | 5,426   |   |                   |   | 7,855    |                       |   |   | 2,727        |   |   |         | —  |   |   |   | 16,008 |   |
| Income taxes payable                             |   |   | — |   |                   |   | —  |                       |   |   | 767          |   |   |         | —  |   |   |   | 767 |   |
| Current portion of long-term debt                |   |   | — |   |                   |   | 348      |                       |   |   | —      |   |   |         | —  |   |   |   | 348 |   |
| Total current liabilities                        |   |   | 125,595 |   |                   |   | (71,366  | )                          |   |   | 16,795       |   |   |         | (7,865   | ) |   |   | 63,159 |   |
|                                             |   |   |    |   |                   |   |     |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Long-term debt                                   |   |   | 163,622 |   |                   |   | —  |                       |   |   | —      |   |   |         | —  |   |   |   | 163,622 |   |
| Intercompany notes payable                       |   |   | — |   |                   |   | —  |                       |   |   | 19,706       |   |   |         | (19,706  | ) |   |   | — |   |
| Other long-term liabilities                      |   |   | 486     |   |                   |   | 2,437    |                       |   |   | 1,024        |   |   |         | —  |   |   |   | 3,947 |   |
| Deferred income taxes                            |   |   | 2,296   |   |                   |   | —  |                       |   |   | 157          |   |   |         | —  |   |   |   | 2,453 |   |
| Total liabilities                                |   |   | 291,999 |   |                   |   | (68,929  | )                          |   |   | 37,682       |   |   |         | (27,571  | ) |   |   | 233,181 |   |
| Shareholders’/ invested equity             |   |   | 282,164 |   |                   |   | 322,579  |                       |   |   | 109,124      |   |   |         | (431,703 | ) |   |   | 282,164 |   |
| Total liabilities and shareholders’ equity |   | $      | 574,163 |   |                   |   | 253,650  |                       |   |   | 146,806      |   |   |         | (459,274 | ) |   | $ | 515,345 |   |

----

|                                             |   | Parent |    |   | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |     |
|--------------------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|----------|
| ASSETS                                           |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Cash and cash equivalents                        |   | $      | 1,656   |   |                   | $      | 323     |                       |   | $      | 25,511       |   |   | $            | —  |   |   | $ | 27,490 |   |
| Receivables                                      |   |   | — |   |                   |   | 69,800  |                       |   |   | 30,375       |   |   |         | —  |   |   |   | 100,175 |   |
| Intercompany accounts receivable                 |   |   | 3       |   |                   |   | 6,755   |                       |   |   | 500          |   |   |         | (7,258   | ) |   |   | — |   |
| Inventories                                      |   |   | — |   |                   |   | 84,193  |                       |   |   | 50,690       |   |   |         | —  |   |   |   | 134,883 |   |
| Income taxes receivable                          |   |   | 419     |   |                   |   | — |                       |   |   | 159          |   |   |         | —  |   |   |   | 578 |   |
| Deferred income taxes                            |   |   | 3,482   |   |                   |   | — |                       |   |   | 2,230        |   |   |         | —  |   |   |   | 5,712 |   |
| Other current assets                             |   |   | 122     |   |                   |   | 588     |                       |   |   | 4,521        |   |   |         | —  |   |   |   | 5,231 |   |
| Total current assets                             |   |   | 5,682   |   |                   |   | 161,659 |                       |   |   | 113,986      |   |   |         | (7,258   | ) |   |   | 274,069 |   |
|                                             |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Property, plant and equipment, net               |   |   | 8,889   |   |                   |   | 114,510 |                       |   |   | 27,628       |   |   |         | —  |   |   |   | 151,027 |   |
| Intangible assets, net                           |   |   | — |   |                   |   | 11,612  |                       |   |   | —      |   |   |         | —  |   |   |   | 11,612 |   |
| Investments in unconsolidated affiliates         |   |   | — |   |                   |   | 82,955  |                       |   |   | 8,303        |   |   |         | —  |   |   |   | 91,258 |   |
| Investments in consolidated subsidiaries         |   |   | 456,288 |   |                   |   | — |                       |   |   | —      |   |   |         | (456,288 | ) |   |   | — |   |
| Intercompany notes receivable                    |   |   | — |   |                   |   | — |                       |   |   | 16,545       |   |   |         | (16,545  | ) |   |   | — |   |
| Other non-current assets                         |   |   | 3,619   |   |                   |   | 3,048   |                       |   |   | 2,743        |   |   |         | —  |   |   |   | 9,410 |   |
| Total assets                                     |   | $      | 474,478 |   |                   | $      | 373,784 |                       |   | $      | 169,205      |   |   | $            | (480,091 | ) |   | $ | 537,376 |   |
|                                             |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY       |   |
| Accounts payable                                 |   | $      | 164     |   |                   | $      | 35,207  |                       |   | $      | 7,471        |   |   | $            | —  |   |   | $ | 42,842 |   |
| Intercompany accounts payable                    |   |   | 409     |   |                   |   | — |                       |   |   | 6,849        |   |   |         | (7,258   | ) |   |   | — |   |
| Accrued expenses                                 |   |   | 2,037   |   |                   |   | 11,717  |                       |   |   | 3,741        |   |   |         | —  |   |   |   | 17,495 |   |
| Income taxes payable                             |   |   | — |   |                   |   | — |                       |   |   | 421          |   |   |         | —  |   |   |   | 421 |   |
| Current portion of long-term debt                |   |   | — |   |                   |   | 342     |                       |   |   | —      |   |   |         | —  |   |   |   | 342 |   |
| Total current liabilities                        |   |   | 2,610   |   |                   |   | 47,266  |                       |   |   | 18,482       |   |   |         | (7,258   | ) |   |   | 61,100 |   |
|                                             |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |     |   |   |   |   |   |
| Long-term debt                                   |   |   | 168,322 |   |                   |   | — |                       |   |   | —      |   |   |         | —  |   |   |   | 168,322 |   |
| Intercompany notes payable                       |   |   | — |   |                   |   | — |                       |   |   | 16,545       |   |   |         | (16,545  | ) |   |   | — |   |
| Other long-term liabilities                      |   |   | 409     |   |                   |   | 2,562   |                       |   |   | 1,036        |   |   |         | —  |   |   |   | 4,007 |   |
| Deferred income taxes                            |   |   | 3,482   |   |                   |   | — |                       |   |   | 810          |   |   |         | —  |   |   |   | 4,292 |   |
| Total liabilities                                |   |   | 174,823 |   |                   |   | 49,828  |                       |   |   | 36,873       |   |   |         | (23,803  | ) |   |   | 237,721 |   |
| Shareholders’/ invested equity             |   |   | 299,655 |   |                   |   | 323,956 |                       |   |   | 132,332      |   |   |         | (456,288 | ) |   |   | 299,655 |   |
| Total liabilities and shareholders’ equity |   | $      | 474,478 |   |                   | $      | 373,784 |                       |   | $      | 169,205      |   |   | $            | (480,091 | ) |   | $ | 537,376 |   |

----

|                                                     |   | Parent |    |   | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|----------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Net sales                                                |   | $      | — |   |                   | $      | 123,920 |                       |   | $      | 47,093       |   |   | $            | — |   |   | $ | 171,013 |   |
| Cost of sales                                            |   |   | — |   |                   |   | 116,210 |                       |   |   | 43,145       |   |   |         | (172    | ) |   |   | 159,183 |   |
| Gross profit                                             |   |   | — |   |                   |   | 7,710   |                       |   |   | 3,948        |   |   |         | 172     |   |   |   | 11,830 |   |
| Equity in subsidiaries                                   |   |   | (36     | )      |                   |   | — |                       |   |   | —      |   |   |         | 36      |   |   |   | — |   |
| Selling, general and administrative expenses             |   |   | — |   |                   |   | 7,784   |                       |   |   | 2,587        |   |   |         | — |   |   |   | 10,371 |   |
| (Benefit) provision for bad debts                        |   |   | — |   |                   |   | 238     |                       |   |   | (33          | )      |   |         | — |   |   |   | 205 |   |
| Other operating (income) expense, net                    |   |   | (4,923  | )      |                   |   | 4,937   |                       |   |   | (63          | )      |   |         | 8       |   |   |   | (41 | ) |
| Operating income (loss)                                  |   |   | 4,959   |   |                   |   | (5,249  | )                          |   |   | 1,457        |   |   |         | 128     |   |   |   | 1,295 |   |
| Interest income                                          |   |   | — |   |                   |   | (62     | )                          |   |   | (745         | )      |   |         | 160     |   |   |   | (647 | ) |
| Interest expense                                         |   |   | 4,363   |   |                   |   | 17      |                       |   |   | 160          |   |   |         | (160    | ) |   |   | 4,380 |   |
| Loss on extinguishment of debt                           |   |   | 462     |   |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | 462 |   |
| Equity in earnings (losses) of unconsolidated affiliates |   |   | — |   |                   |   | (3,827  | )                          |   |   | 67           |   |   |         | 301     |   |   |   | (3,459 | ) |
| Income (loss) before income taxes                        |   |   | 134     |   |                   |   | (1,377  | )                          |   |   | 1,975        |   |   |         | (173    | ) |   |   | 559 |   |
| (Benefit) provision for income taxes                     |   |   | (152    | )      |                   |   | — |                       |   |   | 425          |   |   |         | — |   |   |   | 273 |   |
| Net income (loss)                                        |   | $      | 286     |   |                   | $      | (1,377  | )                          |   | $      | 1,550        |   |   | $            | (173    | ) |   | $ | 286 |   |

|                               |   | Parent |    |   | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Net income (loss)                  |   | $      | 286     |   |                   | $      | (1,377  | )                          |   | $      | 1,550        |   |   | $            | (173    | ) |   | $ | 286 |   |
|                               |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Other comprehensive income (loss): |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Foreign currency adjustments       |   |   | (17,225 | )      |                   |   | — |                       |   |   | (17,225      | )      |   |         | 17,225  |   |   |   | (17,225 | ) |
| Loss on cash flow hedges           |   |   | (78     | )      |                   |   | (891    | )                          |   |   | —      |   |   |         | — |   |   |   | (969 | ) |
| Other comprehensive income         |   |   | (17,303 | )      |                   |   | (891    | )                          |   |   | (17,225      | )      |   |         | 17,225  |   |   |   | (18,194 | ) |
|                               |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Comprehensive income (loss)        |   | $      | (17,017 | )      |                   | $      | (2,268  | )                          |   | $      | (15,675      | )      |   | $            | 17,052  |   |   | $ | (17,908 | ) |

----

|                                                     |   | Parent |    |   | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |          |
|----------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------------|
| Net sales                                                |   | $      | — |   |                   | $      | 122,058 |                       |   | $      | 53,432       |   |   | $            | (398          | ) |   | $ | 175,092 |   |
| Cost of sales                                            |   |   | — |   |                   |   | 107,371 |                       |   |   | 46,648       |   |   |         | (473          | ) |   |   | 153,546 |   |
| Gross profit                                             |   |   | — |   |                   |   | 14,687  |                       |   |   | 6,784        |   |   |         | 75            |   |   |   | 21,546 |   |
| Restructuring charges                                    |   |   | — |   |                   |   | 363     |                       |   |   | —      |   |   |         | —       |   |   |   | 363 |   |
| Equity in subsidiaries                                   |   |   | (11,328 | )      |                   |   | — |                       |   |   | —      |   |   |         | 11,328        |   |   |   | — |   |
| Selling, general and administrative expenses             |   |   | — |   |                   |   | 8,190   |                       |   |   | 3,320        |   |   |         | —       |   |   |   | 11,510 |   |
| (Benefit) provision for bad debts                        |   |   | — |   |                   |   | (292    | )                          |   |   | 251          |   |   |         | —       |   |   |   | (41 | ) |
| Other operating (income) expense, net                    |   |   | (6,404  | )      |                   |   | 5,171   |                       |   |   | 550          |   |   |         | 926           |   |   |   | 243 |   |
| Operating income (loss)                                  |   |   | 17,732  |   |                   |   | 1,255   |                       |   |   | 2,663        |   |   |         | (12,179       | ) |   |   | 9,471 |   |
| Interest income                                          |   |   | — |   |                   |   | (66     | )                          |   |   | (677         | )      |   |         | —       |   |   |   | (743 | ) |
| Interest expense                                         |   |   | 5,156   |   |                   |   | 17      |                       |   |   | 96           |   |   |         | —       |   |   |   | 5,269 |   |
| Loss on extinguishment of debt                           |   |   | 1,144   |   |                   |   | — |                       |   |   | —      |   |   |         | —       |   |   |   | 1,144 |   |
| Equity in earnings (losses) of unconsolidated affiliates |   |   | — |   |                   |   | (8,634  | )                          |   |   | (594         | )      |   |         | 277           |   |   |   | (8,951 | ) |
| Income (loss) before income taxes                        |   |   | 11,432  |   |                   |   | 9,938   |                       |   |   | 3,838        |   |   |         | (12,456       | ) |   |   | 12,752 |   |
| Provision for income taxes                               |   |   | 1,197   |   |                   |   | — |                       |   |   | 1,320        |   |   |         |  — |   |   |   | 2,517 |   |
| Net income (loss)                                        |   | $      | 10,235  |   |                   | $      | 9,938   |                       |   | $      | 2,518        |   |   | $            | (12,456       | ) |   | $ | 10,235 |   |

|                               |   | Parent |    |   | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Net income (loss)                  |   | $      | 10,235  |   |                   | $      | 9,938   |                       |   | $      | 2,518        |   |   | $            | (12,456 | ) |   | $ | 10,235 |   |
|                               |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Other comprehensive income (loss): |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Foreign currency adjustments       |   |   | 6,707   |   |                   |   | — |                       |   |   | 6,707        |   |   |         | (6,707  | ) |   |   | 6,707 |   |
| Loss on cash flow hedges           |   |   | — |   |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | — |   |
| Other comprehensive income (loss)  |   |   | 6,707   |   |                   |   |    |                       |   |   | 6,707        |   |   |         | (6,707  | ) |   |   | 6,707 |   |
|                               |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Comprehensive income (loss)        |   | $      | 16,942  |   |                   | $      | 9,938   |                       |   | $      | 9,225        |   |   | $            | (19,163 | ) |   | $ | 16,942 |   |

----

|                                                         |   | Parent |    |    | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|--------------------------------------------------------------|--------|--------|---------|---------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Operating activities:                                        |   |   |    |    |                   |   |    |                       |   |   |         |   |   |         |    |
| Net cash provided by (used in) operating activities          |   | $      | (2,093  | )  |                   | $      | (1,989  | )                          |   | $      | 5,915        |   |   | $            | (12     | ) |   | $ | 1,821 |   |
|                                                         |   |   |    |    |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Investing activities:                                        |   |   |    |    |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Capital expenditures                                         |   |   | 5       |    |                   |   | (306    | )                          |   |   | (821         | )      |   |         | — |   |   |   | (1,122 | ) |
| Investments in unconsolidated affiliates                     |   |   | — |    |                   |   | — |                       |   |   | (360         | )      |   |         | — |   |   |   | (360 | ) |
| Proceeds from sale of assets                                 |   |   | — |    |                   |   | 89      |                       |   |   | 92           |   |   |         | (8      | ) |   |   | 173 |   |
| Net cash provided by (used in) investing activities          |   |   | 5       |    |                   |   | (217    | )                          |   |   | (1,089       | )      |   |         | (8      | ) |   |   | (1,309 | ) |
|                                                         |   |   |    |    |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Financing activities:                                        |   |   |    |    |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Payments of notes payable                                    |   |   | (10,288 | )       |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | (10,288 | ) |
| Payments on revolving credit facility                        |   |   | (53,500 | )       |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | (53,500 | ) |
| Proceeds from borrowings on revolving credit facility        |   |   | 58,800  |    |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | 58,800 |   |
| Proceeds from stock option exercises                         |   |   | 49      |    |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | 49 |   |
| Cash dividend paid                                           |   |   | 7,400   |    |                   |   | — |                       |   |   | (7,400       | )      |   |         | — |   |   |   | — |   |
| Net cash provided by (used in) by financing activities       |   |   | 2,461   |    |                   |   | — |                       |   |   | (7,400       | )      |   |         | — |   |   |   | (4,939 | ) |
|                                                         |   |   |    |    |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents |   |   | — |    |                   |   | — |                       |   |   | (3,262       | )      |   |         | 20      |   |   |   | (3,242 | ) |
|                                                         |   |   |    |    |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents         |   |   | 373     |    |                   |   | (2,206  | )                          |   |   | (5,836       | )      |   |         | — |   |   |   | (7,669 | ) |
| Cash and cash equivalents at beginning of the year           |   |   | 1,656   |    |                   |   | 323     |                       |   |   | 25,511       |   |   |         | — |   |   |   | 27,490 |   |
| Cash and cash equivalents at end of the period               |   | $      | 2,029   |    |                   | $      | (1,883  | )                          |   | $      | 19,675       |   |   | $            | — |   |   | $ | 19,821 |   |

----

|                                                         |   | Parent |    |   | Guarantor Subsidiaries |   |    | Non-Guarantor Subsidiaries |   |   | Eliminations |   |   | Consolidated |    |
|--------------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|----------------------------|--------|--------|--------------|--------|--------|--------------|---------|
| Operating activities:                                        |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |
| Net cash provided by (used in) operating activities          |   | $      | 6,921   |   |                   | $      | 1,149   |                       |   | $      | (4,380       | )      |   | $            | 321     |   |   | $ | 4,011 |   |
|                                                         |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Investing activities:                                        |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Capital expenditures                                         |   |   | — |   |                   |   | (3,020  | )                          |   |   | (2,475       | )      |   |         | — |   |   |   | (5,495 | ) |
| Investments in unconsolidated affiliates                     |   |   | — |   |                   |   | — |                       |   |   | (225         | )      |   |         | — |   |   |   | (225 | ) |
| Proceeds from sale of assets                                 |   |   | — |   |                   |   | — |                       |   |   | 180          |   |   |         | — |   |   |   | 180 |   |
| Net cash used in investing activities                        |   |   | — |   |                   |   | (3,020  | )                          |   |   | (2,520       | )      |   |         | — |   |   |   | (5,540 | ) |
|                                                         |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Financing activities:                                        |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Payments of notes payable                                    |   |   | (15,863 | )      |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | (15,863 | ) |
| Payments on revolving credit facility                        |   |   | (40,525 | )      |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | (40,525 | ) |
| Proceeds from borrowings on revolving credit facility        |   |   | 40,525  |   |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | 40,525 |   |
| Debt financing fees                                          |   |   | (821    | )      |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | (821 | ) |
| Net cash used in financing activities                        |   |   | (16,684 | )      |                   |   | — |                       |   |   | —      |   |   |         | — |   |   |   | (16,684 | ) |
|                                                         |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents |   |   | — |   |                   |   | — |                       |   |   | 2,117        |   |   |         | (321    | ) |   |   | 1,796 |   |
|                                                         |   |   |    |   |                   |   |    |                       |   |   |         |   |   |         |    |   |   |   |   |   |
| Net decrease in cash and cash equivalents                    |   |   | (9,763  | )      |                   |   | (1,871  | )                          |   |   | (4,783       | )      |   |         | — |   |   |   | (16,417 | ) |
| Cash and cash equivalents at beginning of the year           |   |   | 9,938   |   |                   |   | 1,832   |                       |   |   | 30,921       |   |   |         | — |   |   |   | 42,691 |   |
| Cash and cash equivalents at end of the period               |   | $      | 175     |   |                   | $      | (39     | )                          |   | $      | 26,138       |   |   | $            | — |   |   | $ | 26,274 |   |

----

|   | ● | the competitive nature of the textile industry and the impact of worldwide competition; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | ● | changes in the trade regulatory environment and governmental policies and legislation; |
|--------|---------|----------------------------------------------------------------------------------------|

|   | ● | the availability, sourcing and pricing of raw materials; |
|--------|---------|----------------------------------------------------------|

|   | ● | general domestic and international economic and industry conditions in markets where the Company competes, such as recession and other economic and political factors over which the Company has no control; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | changes in consumer spending, customer preferences, fashion trends and end-uses; |
|--------|---------|----------------------------------------------------------------------------------|

|   | ● | the ability to reduce production costs; |
|--------|---------|-----------------------------------------|

|   | ● | changes in currency exchange rates, interest and inflation rates; |
|--------|---------|-------------------------------------------------------------------|

|   | ● | the financial condition of the Company’s customers; |
|--------|---------|-----------------------------------------------------------|

|   | ● | the ability to sell excess assets; |
|--------|---------|------------------------------------|

|   | ● | technological advancements and the continued availability of financial resources to fund capital expenditures; |
|--------|---------|----------------------------------------------------------------------------------------------------------------|

|   | ● | the operating performance of joint ventures, alliances and other equity investments; |
|--------|---------|--------------------------------------------------------------------------------------|

|   | ● | the accurate financial reporting of information from equity method investees; |
|--------|---------|-------------------------------------------------------------------------------|

|   | ● | the impact of environmental, health and safety regulations; |
|--------|---------|-------------------------------------------------------------|

|   | ● | the loss of a material customer(s); |
|--------|---------|-------------------------------------|

|   | ● | the ability to protect intellectual property; |
|--------|---------|-----------------------------------------------|

|   | ● | employee relations; |
|--------|---------|---------------------|

|   | ● | volatility of financial and credit markets; |
|--------|---------|---------------------------------------------|

|   | ● | the continuity of the Company’s leadership; |
|--------|---------|---------------------------------------------------|

|   | ● | availability of and access to credit on reasonable terms; and |
|--------|---------|---------------------------------------------------------------|

|   | ● | the success of the Company’s strategic business initiatives. |
|--------|---------|--------------------------------------------------------------------|

----

----

|   | ● | sales volume for the Company and for each of its reportable segments; |
|--------|---------|-----------------------------------------------------------------------|

|   | ● | gross profits and gross margin for the Company and for each of its reportable segments; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | ● | Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) represents net income or loss before net interest expense, income tax expense and depreciation and amortization expense; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Consolidated EBITDA represents EBITDA adjusted to exclude equity in earnings of unconsolidated affiliates; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | ● | Adjusted EBITDA represents Consolidated EBITDA adjusted to exclude restructuring charges, startup costs, non-cash compensation expense net of distributions, loss on extinguishment of debt, and other adjustments.  Other adjustments include gains or losses on sales or disposals of property, plant, or equipment (“PP&E”) and currency and derivative gains or losses.  The Company may, from time to time, change the items included within Adjusted EBITDA; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Segment Adjusted Profit equals segment gross profit, less segment SG&A expenses, plus segment depreciation and amortization; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | For the Three Months Ended |    |
|-------------------------------------------------|--------|----------------------------|---------|
|                                            |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Net income                                      |   | $                          | 286     |   |   | $ | 10,235 |   |
| Provision for income taxes                      |   |                       | 273     |   |   |   | 2,517 |   |
| Interest expense, net                           |   |                       | 3,733   |   |   |   | 4,526 |   |
| Depreciation and amortization expense           |   |                       | 6,561   |   |   |   | 6,489 |   |
| EBITDA                                          |   | $                          | 10,853  |   |   | $ | 23,767 |   |
|                                            |   |                       |    |   |   |   |   |   |
| Equity in earnings of unconsolidated affiliates |   |                       | (3,459  | ) |   |   | (8,951 | ) |
| Consolidated EBITDA                             |   | $                          | 7,394   |   |   | $ | 14,816 |   |
| Restructuring charges                           |   |                       | — |   |   |   | 363 |   |
| Startup costs (1)                          |   |                       | — |   |   |   | 1,463 |   |
| Non-cash compensation, net of distributions     |   |                       | 243     |   |   |   | 347 |   |
| Loss on extinguishment of debt                  |   |                       | 462     |   |   |   | 1,144 |   |
| Other                                           |   |                       | 43      |   |   |   | 299 |   |
| Adjusted EBITDA                                 |   | $                          | 8,142   |   |   | $ | 18,432 |   |

----

|                                                           |   | For the Three Months Ended |    |
|----------------------------------------------------------------|--------|----------------------------|---------|
|                                                           |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Adjusted EBITDA                                                |   | $                          | 8,142   |   |   | $ | 18,432 |   |
| Depreciation included in other operating (income) expense, net |   |                       | (6      | ) |   |   | (3 | ) |
| Startup costs (1)                                         |   |                       | — |   |   |   | (1,463 | ) |
| Non-cash compensation, net of distribution                     |   |                       | (243    | ) |   |   | (347 | ) |
| Provision (benefit) for bad debts                              |   |                       | 205     |   |   |   | (41 | ) |
| Other, net                                                     |   |                       | (84     | ) |   |   | (56 | ) |
| Segment Adjusted Profit                                        |   | $                          | 8,014   |   |   | $ | 16,522 |   |

|                                  |   | For the Three Months Ended |   |
|---------------------------------------|--------|----------------------------|--------|
|                                  |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Polyester Segment Adjusted Profit     |   | $                          | 2,426  |   |   | $ | 5,705 |   |
| Nylon Segment Adjusted Profit         |   |                       | 3,024  |   |   |   | 4,767 |   |
| International Segment Adjusted Profit |   |                       | 2,564  |   |   |   | 6,050 |   |
| Total Segment Adjusted Profit         |   | $                          | 8,014  |   |   | $ | 16,522 |   |

|                            |   | For the Three Months Ended |    |
|---------------------------------|--------|----------------------------|---------|
|                            |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Polyester segment net sales     |   | $                          | 92,528  |   |   | $ | 85,587 |   |
| Nylon segment net sales         |   |                       | 40,961  |   |   |   | 44,173 |   |
| International segment net sales |   |                       | 37,524  |   |   |   | 45,332 |   |
| Subtotal segment net sales      |   | $                          | 171,013 |   |   | $ | 175,092 |   |
|                            |   |                       |    |   |   |   |   |   |
| Consolidated net sales          |   | $                          | 171,013 |   |   | $ | 175,092 |   |

|                               |   | For the Three Months Ended |   |
|------------------------------------|--------|----------------------------|--------|
|                               |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Polyester segment gross profit     |   | $                          | 3,690  |   |   | $ | 7,662 |   |
| Nylon segment gross profit         |   |                       | 4,351  |   |   |   | 6,196 |   |
| International segment gross profit |   |                       | 3,789  |   |   |   | 7,688 |   |
| Subtotal segment gross profit      |   | $                          | 11,830 |   |   | $ | 21,546 |   |
|                               |   |                       |   |   |   |   |   |   |
| Consolidated gross profit          |   | $                          | 11,830 |   |   | $ | 21,546 |   |

|                           |   | For the Three Months Ended |   |
|--------------------------------|--------|----------------------------|--------|
|                           |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Polyester segment SG&A     |   | $                          | 6,063  |   |   | $ | 6,688 |   |
| Nylon segment SG&A         |   |                       | 2,110  |   |   |   | 2,282 |   |
| International segment SG&A |   |                       | 2,198  |   |   |   | 2,540 |   |
| Subtotal segment SG&A      |   | $                          | 10,371 |   |   | $ | 11,510 |   |
|                           |   |                       |   |   |   |   |   |   |
| Consolidated SG&A          |   | $                          | 10,371 |   |   | $ | 11,510 |   |

----

|                                                           |   | For the Three Months Ended |   |
|----------------------------------------------------------------|--------|----------------------------|--------|
|                                                           |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Polyester segment depreciation and amortization                |   | $                          | 4,799  |   |   | $ | 4,730 |   |
| Nylon segment depreciation and amortization                    |   |                       | 783    |   |   |   | 854 |   |
| International segment depreciation and amortization            |   |                       | 973    |   |   |   | 902 |   |
| Subtotal segment depreciation and amortization                 |   | $                          | 6,555  |   |   | $ | 6,486 |   |
| Depreciation included in other operating (income) expense, net |   |                       | 6      |   |   |   | 3 |   |
| Amortization included in interest expense                      |   |                       | 221    |   |   |   | 254 |   |
| Consolidated depreciation and amortization                     |   | $                          | 6,782  |   |   | $ | 6,743 |   |

|                                         |   | For the Three Months Ended |    |               |
|----------------------------------------------|--------|----------------------------|---------|--------------------|
|                                         |   | September 25, 2011         |    | September 26, 2010 |   |   |
|                                         |   |                       |    |               | % to Net Sales |   |   |   |   | % to Net Sales |   | % Change |
| Net sales                                    |   | $                          | 171,013 |               | 100.0 |   | $ | 175,092 |   | 100.0 |   | (2.3) |
| Cost of sales                                |   |                       | 159,183 |               | 93.1 |   |   | 153,546 |   | 87.7 |   | 3.7 |
| Gross profit                                 |   |                       | 11,830  |               | 6.9 |   |   | 21,546 |   | 12.3 |   | (45.1) |
| Restructuring charges                        |   |                       | — |               | — |   |   | 363 |   | 0.2 |   | (100.0) |
| Selling, general and administrative expenses |   |                       | 10,371  |               | 6.0 |   |   | 11,510 |   | 6.6 |   | (9.9) |
| Provision (benefit) for bad debts            |   |                       | 205     |               | 0.1 |   |   | (41) |   | — |   | 600.0 |
| Other operating (income) expense, net        |   |                       | (41)    |               | — |   |   | 243 |   | 0.1 |   | (116.9) |
|     Operating income     |   |                       | 1,295   |               | 0.8 |   |   | 9,471 |   | 5.4 |   | (86.3) |
| Interest expense, net                        |   |                       | 3,733   |               | 2.2 |   |   | 4,526 |   | 2.6 |   | (17.5) |
| Earnings from unconsolidated affiliates      |   |                       | (3,459) |               | (2.0) |   |   | (8,951) |   | (5.1) |   | (61.4) |
| Other non-operating (income) expense, net    |   |                       | 462     |               | 0.3 |   |   | 1,144 |   | 0.6 |   | (59.6) |
| Income before income taxes                   |   |                       | 559     |               | 0.3 |   |   | 12,752 |   | 7.3 |   | (95.6) |
| Provision for income taxes                   |   |                       | 273     |               | 0.1 |   |   | 2,517 |   | 1.4 |   | (89.2) |
|     Net income           |   | $                          | 286     |               | 0.2 |   | $ | 10,235 |   | 5.9 |   | (97.2) |

----

|          |   | For the Three Months Ended |   |               |
|---------------|--------|----------------------------|--------|--------------------|
|          |   | September 25, 2011         |   | September 26, 2010 |   |   |
|          |   |                       |   |               | % to Net Sales |   |   |   |   | % to Net Sales |   | % Change |
| Net sales     |   | $                          | 92,528 |               | 100.0 |   | $ | 85,587 |   | 100.0 |   | 8.1 |
| Cost of sales |   |                       | 88,838 |               | 96.0 |   |   | 77,925 |   | 91.0 |   | 14.0 |
| Gross profit  |   | $                          | 3,690  |               | 4.0 |   | $ | 7,662 |   | 9.0 |   | (51.8) |

----

|          |   | For the Three Months Ended |   |               |
|---------------|--------|----------------------------|--------|--------------------|
|          |   | September 25, 2011         |   | September 26, 2010 |   |   |
|          |   |                       |   |               | % to Net Sales |   |   |   |   | % to Net Sales |   | % Change |
| Net sales     |   | $                          | 40,961 |               | 100.0 |   | $ | 44,173 |   | 100.0 |   | (7.3) |
| Cost of sales |   |                       | 36,610 |               | 89.4 |   |   | 37,977 |   | 86.0 |   | (3.6) |
| Gross profit  |   | $                          | 4,351  |               | 10.6 |   | $ | 6,196 |   | 14.0 |   | (29.8) |

|          |   | For the Three Months Ended |   |               |
|---------------|--------|----------------------------|--------|--------------------|
|          |   | September 25, 2011         |   | September 26, 2010 |   |   |
|          |   |                       |   |               | % to Net Sales |   |   |   |   | % to Net Sales |   | % Change |
| Net sales     |   | $                          | 37,524 |               | 100.0 |   | $ | 45,332 |   | 100.0 |   | (17.2) |
| Cost of sales |   |                       | 33,735 |               | 89.9 |   |   | 37,644 |   | 83.0 |   | (10.4) |
| Gross profit  |   | $                          | 3,789  |               | 10.1 |   | $ | 7,688 |   | 17.0 |   | (50.7) |

----

|                                        |   | For the Three Months Ended |   |
|---------------------------------------------|--------|----------------------------|--------|
|                                        |   | September 25, 2011         |   |   | September 26, 2010 |   |
| Net (gain) loss on sale of assets           |   | $                          | 64     |   |   | $ | (65 | ) |
| Foreign currency transaction (gains) losses |   |                       | (21    | ) |   |   | 364 |   |
| Other, net                                  |   |                       | (84    | ) |   |   | (56 | ) |
| Other operating (income) expense, net       |   | $                          | (41    | ) |   | $ | 243 |   |

----

----

|                                           |   | U.S.   |    |   | Brazil |   |    | All Others |   |   | Total   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|------------|--------|--------|---------|--------|
| Working capital                                |   | $      | 115,389 |   |   | $      | 57,452  |       |   | $      | 25,575  |   |   | $ | 198,416 |   |
| Long-term debt, including current portion      |   | $      | 163,970 |   |   | $      | — |       |   | $      | — |   |   | $ | 163,970 |   |
|                                           |   |   |    |   |   |   |    |       |   |   |    |   |   |   |   |   |
| Cash and cash equivalents                      |   | $      | 146     |   |   | $      | 11,184  |       |   | $      | 8,491   |   |   | $ | 19,821 |   |
| Borrowings available revolving credit facility |   |   | 54,598  |   |   |   | — |       |   |   | — |   |   |   | 54,598 |   |
| Liquidity                                      |   | $      | 54,744  |   |   | $      | 11,184  |       |   | $      | 8,491   |   |   | $ | 74,419 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | For the Three Months Ended |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | September 25, 2011         |    |   | September 26, 2010 |   |
| Plus cash receipts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                       |    |   |   |   |
| Receipts from customers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                          | 171,615 |   |   | $ | 172,063 |   |
| Dividends from unconsolidated affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                       | 2,005   |   |   |   | 2,532 |   |
| Other receipts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       | 551     |   |   |   | 895 |   |
| Less cash payments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                       |    |   |   |   |   |   |
| Payments to suppliers and other operating cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                       | 136,031 |   |   |   | 133,555 |   |
| Payments for salaries, wages, and benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                       | 34,748  |   |   |   | 35,138 |   |
| Payments for restructuring and severance                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                       | — |   |   |   | 664 |   |
| Payments for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                       | 778     |   |   |   | 380 |   |
| Payments for taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                       | 793     |   |   |   | 1,742 |   |
| Net cash provided by operations                                                                              |   | $                          | 1,821   |   |   | $ | 4,011 |   |

----

|                              |   | September 25, 2011 |    |   | June 26, 2011 |   |
|-----------------------------------|--------|--------------------|---------|--------|---------------|--------|
| Notes payable                     |   | $                  | 123,722 |   |          | $      | 133,722 |   |
| Revolving credit facility         |   |               | 39,900  |   |          |   | 34,600 |   |
| Capital lease obligation          |   |               | 348     |   |          |   | 342 |   |
| Total debt                        |   |               | 163,970 |   |          |   | 168,664 |   |
| Current portion of long-term debt |   |               | (348    | )      |          |   | (342 | ) |
| Total long-term debt              |   | $                  | 163,622 |   |          | $      | 168,322 |   |

----

----

|                                |   | Expected Maturity Date on a Fiscal Year Basis |    |
|-------------------------------------|--------|-----------------------------------------------|---------|
|                                |   | 2012                                          |    |   | 2013 |   |   | 2014 |   |   | 2015 |   |   | 2016 |   |   | Fair Value |   |
| Long-term debt:                     |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2014 notes payable                  |   | $                                             | — |   |   | $ | — |   |   | $ | 123,722 |   |   | $ | — |   |   | $ | — |   |   | $ | 127,267 |   |
| Fixed interest rate                 |   |                                          | 11.5    | % |   |   | 11.5 | % |   |   | 11.5 | % |   |   | — |   |   |   | — |   |   |   |   |   |
|                                |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revolving credit facility           |   | $                                             | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 39,900 |   |   | $ | 39,900 |   |
| Variable interest rate(2.0-2.75% +) |   | LIBOR                                         |    |   | LIBOR |   |   | LIBOR |   |   | LIBOR |   |   | LIBOR |   |   |   |   |   |
|                                |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate derivatives:          |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Variable to fixed                   |   | $                                             | — |   |   | $ | 25,000 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | (422 | ) |
| Average pay rate(2.0-2.75% +)       |   |                                          | 1.39    | % |   |   | 1.39 | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   |   |   |
|                                |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Variable to fixed                   |   | $                                             | — |   |   | $ | 10,000 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | (64 | ) |
| Average pay rate(2.0-2.75% +)       |   |                                          | 0.75    | % |   |   | 0.75 | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   |   |   |

----

| Period                  |   | Total Number of Shares Purchased |    |   | Average Price Paid per Share |   |    | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares that may Yet Be Purchased Under the Plans or Programs |   |
|-------------------------|--------|---------------------------------------|---------|--------|-----------------------------------|--------|---------|---------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------|--------|
|                    |   |                                  |    |   |                              |   |    |                                                                                  |   |   |                                                                                |   |
| 6/27/11 – 7/26/11 |   |                                  | — |   |                              |   | — |                                                                                  |   |   | —                                                                             |   |   |   | 2,269,080 |   |
| 7/27/11 – 8/26/11 |   |                                  | — |   |                              |   | — |                                                                                  |   |   | —                                                                             |   |   |   | 2,269,080 |   |
| 8/27/11 – 9/25/11 |   |                                  | — |   |                              |   | — |                                                                                  |   |   | —                                                                             |   |   |   | 2,269,080 |   |
| Total                   |   |                                  | — |   |                              |   | — |                                                                                  |   |   | —                                                                             |   |   |   |   |   |

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| Exhibit Number |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1           |   | Form of Restricted Stock Unit Agreement for Employees for restricted stock units granted under the 2008 Unifi, Inc. Long-Term Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1           |   | Chief Executive Officer’s certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31.2           |   | Chief Financial Officer’s certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.1           |   | Chief Executive Officer’s certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.2           |   | Chief Financial Officer’s certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 101            |   | The following materials from Unifi, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended September 25, 2011, formatted in eXtensbile Business Reporting Language (“XBRL”): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Changes in Shareholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to the Condensed Consolidated Financial Statements (tagged as blocks of text)* |
| *              |   | Exhibit will be filed within 30 days of the filing of the Form 10-Q, as permitted by Regulation S-T Item 405(a)(2).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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|                                                                                     |           UNIFI, INC.                                             (Registrant) |                                                                     |
|------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                                     |                                                                                                                                                                                                                                                                                                                                                              |                                                                     |   |
|                                                                                     |                                                                                                                                                                                                                                                                                                                                                              |                                                                     |   |
|                                                                                     |                                                                                                                                                                                                                                                                                                                                                              |                                                                     |   |
| Date:    November 4, 2011         |                                                                                                                                                                                                                                                                                                                                                              | /s/ RONALD L. SMITH                                                 |   |
|                                                                                     |                                                                                                                                                                                                                                                                                                                                                              | Ronald L. Smith                                                          |   |
|                                                                                     |                                                                                                                                                                                                                                                                                                                                                              | Vice President and Chief Financial Officer                               |   |
|                                                                                     |                                                                                                                                                                                                                                                                                                                                                              | (Principal Financial Officer and Duly Authorized Officer) |   |

| Date:    November 4, 2011         |   | /s/ JAMES M. OTTERBERG                                |   |
|-------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                |   | James M. Otterberg                                         |   |
|                                                                                |   | Chief Accounting Officer                              |   |
|                                                                                |   | (Principal Accounting Officer and Duly Authorized Officer) |   |