NEW YORK—J. Barry Leonard, CEO and president of Welspun USA, Inc. has confirmed the closing of its
Kojo Hospitality division.

However, Welspun Hospitality will continue as before supplying hotels with sheets, towels and rugs
and some decorative bedding items, he said. When asked what changed Welspun’s mind about owning
Kojo, Leonard’s only comment was that it did not fit the company’s core strategy as a volume supplier of
sheets and towels to the hotel industry.

It is understood that the Kojo San Diego headquarters has also been closed.

Kojo was acquired from its owners Koni Kim and Joe Robertson about 14 months ago. Their future plans
are not known at this time.