Little Falls, NJ - June 7, 2010

COTTON PRICES HAVE BEEN RISING STEADILY SINCE 2006 WITH A SHARP INCREASE IN 2010.

• Cotton prices are up 55% from last year.
• Fuel, transportation, and labor costs continue to rise.
• Demand for cotton has increased globally.

THESE FACTORS HAVE INCREASED COSTS FOR EVERYONE IN THE APPAREL INDUSTRY.

• Mills have increased their prices to apparel distributors.
• Mills are offering fewer promotional discounts on styles.

We firmly believe that these increases will not be the last in 2010. The custom t-shirt and hat markets will absorb these prices in short order due to the fact that this is an industry wide event. Many custom t-shirt printers were not even aware until today that increases were on the horizon. We have been reporting this information since the beginning of the year. The table at the left indicates the cost of raw cotton not the cost of increases in finished goods. Due to this increase we cannot honor any non-contractual pricing. Customers with price protection contracts will be spared under the terms of their agreements until expiration.

We welcome your comments and questions. Contact Us.