NILIT announces the planned closing of its fiber manufacturing operations in Oestringen, Germany. We anticipate that production will be stopped during the second quarter of 2012. Since the acquisition of Invista's business in Europe, including the plant in Oestringen, Germany, tremendous strides were made in improving the quality and cost structure of the business. We are proud of the work done by all the dedicated employees at the site.

The timing of the closure of manufacturing in Oestringen is the result of a decision by the site's owner, who also provides NILIT with critical services and utilities, to exit the site completely. However, during the past year, NILIT has continued to make significant investments in different areas of the world, all of which will come on stream during the first half of 2012. The investment is an integral part of NILIT's strategy and commitment to the market for nylon 66 fibers. These investments include an important expansion of the capacity in Israel and a new spinning plant in China. Both investments are based on the latest state-of-the-art technology and equipment and will help assure uninterrupted supply of all products with the highest level of service and quality to our customers worldwide.

For clarification: the above decision does not affect the existing exclusive legal agreement for CORDURA® , TACTEL® and SUPPLEX® - registered trademarks of INVISTA - used under license to NILIT for nylon products.These products will continue to be sold regularly by the NILIT Group.