BREAKING NEWS

Little Falls, NJ - September 30, 2008

Gildan, Hanes, Anvil, Jerzees, Bella and Outer Banks have all announced across the board price increases effective September 29, 2008. According to Blue Heron Industries, Inc. CEO Kevin F. Kelly, end users of these products will begin to feel the effects of these increases immediately. Consumers should anticipate prices that are five to fifteen percent higher than orders placed last month. The wholesale apparel market has been in a deflationary cycle since 1995.

Kelly said, "We are not suprised that the wholsale apparel market is adjusting itself to the current economic conditions both here and abroad. In fact, as an industry, I think we have been spared any significant difficulty when compared to what is being felt in the broader based US ecomony in recent months".

Fuel and rising off-shore labor cost are cited by Gildan, Hanes, Anvil, Jerzees, Bella and Outer Banks as the basis for the current increases. The heavy transportation cost associated with moving bulk fabrics from knitting plants, to dye facitities, and ultimately to the assembly line began to show up in wholesale apparel cost at the same time crude oil began surging over $100.00 per barrel last winter. Fuel costs related to the direct manufacture of apparel is significatly higher than a year ago.

Kelly added, " We fully expect to see every wholesale apparel manufacture post price increases within 30 days. Consumers will feel these increases from any vendor from whom they purchase decorated apparel. We have been able to protect many of our larger customers with informed advise and we will continue to do so. At this point I think most informed consumers understand what is happening".

© 2008 Blue Heron Industries, Inc.