John Eapen VP Environmental, Health & Safety American & Efird, Inc.

1. AAFA SCLCC / ECC Presentation John Eapen VP Environmental, Health & Safety American & Efird, Inc. Chairman, AAFA Environmental Task Force April 27, 2007 Environmental Sustainability

2. AAFA Environmental Sustainability Topics • Environmental Task Force (AAFA). • AAFA’s Restricted Substance List (RSL). • REACH. • AAFA’s Environmental Seminar. • AAFA’s Best Environmental Practices

3. AAFA Environmental Task Force • Setup as a Subcommittee of Social Responsibility Committee Three Years Ago. • Currently Has 30 Members. • Staff Liaison: Stephen Lamar, Executive VP, AAFA. • Committee Meets Twice Each Year. • Holds 1-2 Environmental Seminars Each Year. • Working on Several Environmental Sustainability Issues.

4. AAFA Restricted Substances List • Environmental Task Force (ETF) of Social Responsibility Committee Has Been Meeting Since 2004 To Identify and Work on Industry Concerns. • ETF Has Conducted Environmental Seminars in which RSLs Were Extensively Discussed: • June 2005 – “What’s in Your Wardrobe”; Drew More than 100 Participants. • September 2006 – Held in Conjunction with Major Retail Brands in Dongguan, China; Drew More than 400 World Wide Participants. • Since 2006, ETF Has Been Exploring Feasibility of AAFA Creating Own Industry Level RSL for Textiles, Apparel, and Footwear.

5. AAFA Why an AAFA RSL? • Chemical Management of Substances in Products Is a Key Environmental Practice. • Members Desire “Industry-Wide” Approach. • Retail Customers Want Increased Requirements. • National and International Regulatory Regimes: REACH & CA Prop 65. • Would Reduce Liabilities and Expensive Product Recalls (Europe). • Public Awareness of Issue from NGOs. • Consumer Interest in “Green Clothing”.

6. AAFA Status • RSL Task Force Met January 2007 at A&E to Draft RSL. • Members: A&E, Nike, Levi Strauss & Co., Hanes Brands, Kahn Lucas Lancaster, Bureau Veritas, Oeko Tex, SGS, and Intertek. • RSL Covers Substances Whose Presence in Textiles, Clothing, and Footwear Are Restricted by Government Regulation or Law. • RSL Identifies Key Restrictive Global Controls or Prohibitions on Substances with Respect to Textiles, Clothing, and Footwear. • Identifies Any Applicable Test Method. • Currently, Over 150 Chemicals on List. • RSL Does Not Identify Substances: • Used in Manufacturing Processes or Found at Manufacturing Facilities. • Subject to Voluntary Standards. • RSL Has Been Reviewed by Peer Review Committee.

7. AAFA Next Steps • June 2007: • Publication of RSL. • RSL Will Be Made Available on AAFA Web Site – Free to Members and Non Members To Encourage Use and Dissemination. • Supplemental Materials for RSL Will Be Made Available by Subscription. • RSL Seminar in NY City: • Provide Training on RSL, Including Practical Tips on How To Comply with List and How To It. • RSL Task Force Will Begin Work on Phase 2 To Identify Chemicals and Substances Whose Restrictions Are Subject to Best Practices, Standards, or Voluntary Guidelines. • Late 2007/Early 2008: RSL Task Force Will Meet To Begin First Annual Review of RSL.

8. AAFA REACH • Registration, Evaluation, and Authorization of Chemicals. • Coordinated European Response to Limits of Existing Approaches. • Ensure Greater Supply Chain Sharing of Information and Risk Management Measures. • Pre-Registration Between June 1, 2008 and November 30, 2008.

9. AAFA Best Environmental Practices • AAFA Environmental Seminar June 27 in NY City. • AAFA’s Best Environmental Practices: • Best Practices from Member Companies. • Make Available to all Members.