(left-to-right)

Mr. Adriano Rodella
President of Pompea

Mr. Sandro De Bernardin
Ambassador of Italy in Israel

Mr. Michael Levi
Chairman of NILIT


(left-to-right)

Mr. Michael Levi
Chairman of NILIT

Mr. Adriano Rodella
President of Pompea

Migdal Ha'emek, Israel - January 12th, 2006 - Pompea S.p.A., a leading Italian hosiery, lingerie & activewear manufacturer and NILIT^® Ltd., a leading Nylon 6.6 producer, today announced the initiation of the new state-of-the-art POY production line, through a strong and close partnership between the two, called PNF. The new line is based on advanced POY nylon fibers, which NILIT^® will produce at its main production facility in Migdal Ha'emek, Israel. Long term relations between the two Companies are based on the special companionship between Adriano Rodella (President of Pompea) and Michael Levi (Chairman of NILIT), both on a personal and business level. This new cooperation represents the materialization of a vision shared by both partners in the long, successful relationship between Pompea and NILIT.

"NILIT^® has been one of Pompea's major yarn suppliers since its establishment. Our positive experience with NILIT^® , their stability, and their commitment to quality, led us to enter this partnership and to form an operational plan to retain our position as a market leader," explained Mr. Rodella, President of Pompea S.p.A.

NILIT's Chairman, Mr. Michael Levi, says that "by leveraging NILIT's current resources and the cooperative efforts across a number of the Company's departments, we have been able to expand and develop, despite fierce competition in this industry sector. NILIT^® continues to maintain its overriding commitment to its customers in quality, service, R&D, and to inspired innovations for the World of Seamless." Levi went on to praise a number of NILIT's production personnel in readying the company's POY plant for the increased output. The majority of construction work on the plant was carried out by NILIT^® personnel.
NILIT's operation of the new line commenced in January 2006 and will increase its POY output by 15%.