In the statement attached, Indo Phil Textile Mills, Inc has developed its communication to stakeholders regarding progress on the GC principles. Under ?The Implementation of GC Initiatives Principles at Indo Phil During 2003? (in our public statement), we mention that our company attained all the standards of SA-8000 to quality for certification by TUV-Germany. The report also includes the fact that Indo Phil Textile Mills, Inc provided financial support to our labor union for organizing an awareness program on Civic Rights and the impact of globalization. We also institutionalized following (no child labor policy; grievance handling mechanisms; safety gadgets and measures; group personal accident insurance plan, medical and dental care) by way of incorporating a Collective Bargaining Agreement with the Labor Union. Additional information is available in our statement.

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We concluded a Collective Bargaining Agreement with the Union without a single man-hour loss. There was no prolonged labor unrest as in previous negotiations. We have had significant improvement in Employee Satisfaction from 72% in 2002 to 80% in 2003. More information is available in our statement.