Hyosung Inc.Textile Performance Unit

Environmental Stewardship

July, 2008

OZONE-HOLEAbove the Antarctic, there is three times larger Ozone-hole than the USA

CHEMICAL IMPACTMarine animals are contaminated with a lot of chemical substances such as dioxin, PCB and mercury

THE EXTINCTIONtwo-third species will be disappeared in the world at the end of the 21st century

Rapid industrialization has brought serious environmental disruption to the Earth

ENVIRONMENTAL DISRUPTION

Greenhouse gas and waste water are the two main causes of environmental disruption

GLOBAL WARMINGSea-ice in the arctic has shrunk by 14% over last two year

Hyosung Environmental Stewardship Principles

Reuse and minimize release of waste to the environment

Improve utilization of resources including energy and materials

Drive accountability for our environmental vision

Hyosung Textile Products

Reduce environmental impact in manufacturing

Develop offerings that meet consumer andindustry desire for:

»Reduced CO2 emissions»Reduced waste generation»Reduced use of resources=recycled

▪ Reduce 162 tons of CO2 emissions per year

▪ It is equal to the amount of CO2 emissions by 84 cars for a year

■ LOW HEAT - SETTABLE creora®

creora® eco reduces effluent, energy consumption and CO2 emissions

creora® eco

HOW?

. setting temp 15℃ lower than normal spandex/elastane

The burning of 54,062ℓ oilsproduces 162 tons of CO2

162 tons of CO2 are equal to the amount of CO2 emissions from 84 cars per year

Reduced waste generation: engineered fibers

Performance engineered into cross section of fiber- eliminate finishes

Aerocool® Polyester & Nylon

Others: aerosilver®- eliminates antimicrobial finishes, creora® black & black polyester- eliminate dye wasteFirex® polyester-eliminates flame retardant finishes

Recycled nylon & polyester

Recycled Nylon

3

5

1 2

9

6

7 8

4

Post consumer waste is collected and treated in proper way to remove the impurities.

After being chopped into smaller size, the collected wastes goes through the continuous process of recycling.

The recycled nylon chip is made from recaptured caprolactam. MIPAN regenTM is extruded and made into textiles.

MIPAN® Regen™ Process comparison

Virgin nylon

Crude oil well head

Crude oil refinery

Naphtha

Benzene

Caprolactam

Polymerization

Extrusion

Post-consumer waste

Pre-consumer waste

MIPAN® regenTM

Caprolactam

Polymerization

Extrusion

De-polymerization

• Reduces energy consumption • Reduces waste to landfill• Conserves petroleum resources

• Fabric processing & quality is consistent with virgin nylon.

Uses Post-Consumer Waste such as used fishing net, rope as well as our own pre-consumer waste.

Raw material

Chemical recycling Chemically RecycledDe-polymerizes post-consumer nylon waste into Caprolactam, which is the raw material of nylon.

No limitation in yarn spinning and fabric manufacturing ; The same 1st quality as Hyosung’s virgin nylon.

GR mark In process of “Good Recycled” Mark Certification by “Korean Agency for Technology and Standards”, which is a sub-office of “Ministry of Commerce, Industry and Energy”.

MIPAN® Regen™ benefits

recycled Polyester

Eco Mark Certification

BenefitsMade from 100% recycled materialsConserves petroleum resourcesSignificant reduce of Co² emissionsReduces waste to landfillIdentical quality as virgin polyester

Recycled Polyester

Certified by Japan Environment Association (JEA)