Far Eastern Signs Master License Agreement for Ingeo Fibers.

Business Editors

TAIPEI, Taiwan--(BUSINESS WIRE)--March 20, 2003

Marking a major milestone in the commercialization of Ingeo(TM) fibers, Far Eastern Textiles Ltd., one of the world's largest fiber and textile producers, signed a master licensing agreement to produce and sell the new branded fiber.

The signing makes Far Eastern the first company in the world to be fully accredited to make Ingeo fiber, a new fiber and lifestyle-belief brand concept based on a breakthrough technology that allows man-made fibers to be derived from 100 percent annually renewable resources. Far Eastern plans to make and sell Ingeo fibers to the global textile industry. In addition to use in apparel, the Taiwan-based company plans to extend Ingeo fiber to all fields of spinning and nonwoven applications like fancy yarn, fiberfill, hygiene, binder and other types of fibers.

"We are honored and privileged to be the first company to become fully licensed to make and sell Ingeo fibers around the world," said Douglas Hsu, chairman and CEO, Far Eastern Group. "We consider Ingeo fibers one of the ultimate solutions for humankind's long-term search for sustainable, renewable, economical and environmentally friendly products."

According to Tim Eynon, general manager fibers, Cargill Dow, the signing of the first master licensing agreement is a clear indication of the rapid momentum Ingeo fibers is picking up in the global marketplace.

"From Taipei to Hong Kong, Paris, Milan, New York, Tokyo and the other major textile cities around the world, Ingeo has been embraced as a new lifestyle brand concept. It stands for more than a new fiber technology, but for truly choosing to make a positive difference in the future of our world," said Eynon. "Far Eastern has shown tremendous vision, leadership and technological know-how to earn the prestigious honor of being the first fully accredited and licensed producer of Ingeo fibers."

The licensing of the fiber producer paves the way for downstream fiber sales that will ultimately result in Ingeo fibers becoming a globally recognized consumer brand. Under the terms of the agreement, Far Eastern will make a specified range of fiber products and grades that will be certified and branded as Ingeo fibers. Far Eastern will then be able to sell the branded fiber to accredited downstream partners.

"Far Eastern's heritage is as a visionary company that leads the textile industry," said Eynon. "When the company puts its name and commitment behind something, the rest of the industry follows. But, the significance of this licensing agreement is about more than accrediting Ingeo fibers and making it available to downstream partners," he continued. "The signing signifies that we are accomplishing what we said at our global brand launch approximately one month ago -- Ingeo fiber is a commercial reality. We are putting in motion a major shift in the way the textile industry does business and are ushering in a new, more sustainable way of doing business in which humanity, nature and technology work in balance."

About the Companies

Far Eastern Textile LTD. (FETL), founded by Mr. Y. Z. Hsu in 1942 in Shanghai, is Taiwan's largest and most vertically integrated textile company. After half a century's continuous renovations, expansions, mergers and acquisitions, FETL not only ranks among the top 30 textile manufacturers worldwide, but also is the flagship company of the US $22.3 billion-asset Far Eastern Group, one of the largest industrial conglomerates in Taiwan. With revenues of $6.3 billion (US) and a work force of 30,000 plus in 2002, the Group holds diversified businesses including the world's top five polyester fiber producer, a 8 million M/T cement company, Taiwan's only 41 retail outlet chain and a 2.2 million DWT shipping fleet.

With full operations of fiber, textile (spinning/weaving/dyeing/finishing) and apparel divisions, as well as a complete product line of polyester fiber, filament, chips and PET bottles, yarn & piece goods, and knitted & woven goods, FETL registered total revenues of $923 million (US) in 2002. With annual exports of $491 million (US) to more than fifty countries worldwide.

Ingeo fiber is a new brand concept based on the principles of sustainability - economic viability, social responsibility and environmental soundness. It represents the world's first man-made fiber derived from 100 percent annually renewable resources. The process to make Ingeo fiber is based on the fermentation of simple plant sugars to create a proprietary polymer that can then be spun into a fiber. Ingeo fiber is ideally suited for a range of textile products and applications where it competes with traditional fibers on a price and performance basis. For more information on Ingeo fiber, please visit our Web site at www.ingeofibers.com.

(TM) Ingeo and the Ingeo logo are trademarks of Cargill Dow LLC. Copyright (C) 2003 Cargill Dow LLC