On February 14, 2012 the Company's Board of Directors granted its approval, followed by the Company's shareholders' approval in a meeting convened on April 4 2012, and also approved the Company, to enter a service agreement with Mr. Mike Gao through Asia Socks Inc. Company and/or through any other company owned by Mr. Gao. In accordance with the agreement Mr. Gao will provide the Company, through Asia Socks, tracing services in connection with raw materials and products and/or subcontractors and supervision and consultation services that include the provision of suppliers credit to the Company for a period of three years. The Company expects that the execution of this agreement will result in further decrease of the Company's procurement costs especially in the procurement of raw materials and auxiliary materials and, in addition to the said, will increase competition among suppliers. The company hereby announces that it commenced negotiations with a private company incorporated in China that is an unrelated party to the Company, for the purpose of setting up a long term joint venture between the parties for the purpose of producing apparel in "seamless" technology (hereinafter: the Venture).
It is emphasized that there is no certainty that the negotiations between the parties will result in a binding agreement and/or any other cooperation between the parties. The Company will continue to report, as required by law, to the extent that a binding agreement is signed between the parties or to the extent that the negotiations between the parties terminates.
Tefron reports strong improvement in operating and net profit in the second quarter and first half of 2012 and first positive quarterly cash flow in #
Tefron
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