1. Modern Testing Services (Germany) GmbH Restricted Substances Seminar Achieving RSL Program Objectives September 21, 2006 Dongguan, China

2. Modern Testing Services (Germany) GmbH About MTS Germany Investor of MTS-Group: Mr. Byung Won Park Global EHS service for textiles, toys, shoes, electronic and other articles EHS concepts, research und material analytics Locations: Hongkong, Dongguan, Shanghai, Singapore, India, South Korea Taiwan, Thailand, USA, Turkey, Italy, Germany, UK and others

3. Modern Testing Services (Germany) GmbH RSL Program Objectives Compliance with global chemical substances regulations Avoidance of product safety and liability issues Generally safe products for human and environment Ready for REACh, the new European Chemical Law Optimized production and product quality

4. Modern Testing Services (Germany) GmbH How to achieve RSL objectives? Classical version: RSL conformity by means of systematic analytical control on all levels Trust version RSL conformity based on compliance declarations through the whole global textile supply chain statistical analytical control Integrated und sustainable version RSL-conformity through implementaion of modern product- und raw material approval systems during manufacturing Responsibilty stays 100% within the supply chain

5. Modern Testing Services (Germany) GmbH Pro and Contra Classical version: Independency of supply chain Practically no transparency in the case of failure Raising costs and analytical challenges Running out model Trust version Favourite on the market at the moment But, can we really trust the supply chain? High risk for unneeded substance restrictions (to be on safe side) Innovation Integrated and sustainable version The clear concept future Challenging, needs special know how about textile chemistry Provides maximum of flexibility und transparency

6. Modern Testing Services (Germany) GmbH Development of a toxicologically validated and integrated consumer safety screening system for textile products Textile raw materials Chemical raw materials Theoretical calculation of ecological and toxicological charges to plant environment and consumer environment Charges to air Charges to water Charges to workplace Specific charge factors (intrinsic properties) Charges to consumer via textile product Compare to RSL Prove by classical expensive analytical tools

7. Modern Testing Services (Germany) GmbH Product Development Design Recipe + Process Development Pilot Production Raw Material + Plant Selection Pre Production Run Regular Production Go To Market Easy EHS Screening (Keep full Innovation Power) EHS Development Screening based on Master Recipes / Raw Materials (MSDS, Compliance Declaration, Experience) Detailed Product Approval for all factories and raw materials Final permit Go To Market

8. Modern Testing Services (Germany) GmbH

12. Example: Finishing of PES/PAN-Yarn

13. Modern Testing Services (Germany) GmbH

14. Thank you for your attendance Dr. Dieter Sedlak Managing Director Modern Testing Services (Germany) GmbH 86153 Augsburg, Provinostr. 52 Phone: +49 821 569799610 Mobile: +49 1792152407