Press Release- For release August 1st, 2006

Annin & Co., the world’s oldest and largest manufacturer of U.S. flags, through its wholly owned subsidiary Star Fields, LLC has entered into an agreement to acquire all of the operating assets and business of D&P Embroidery, a major supplier of embroidered star fields to the domestic U.S. flag making industry. Annin & Co.’s new subsidiary will continue to operate the D&P facility in Cobbs Creek, Virginia and will retain Thomas Downs and David Downs as President and Executive Vice President, respectively, to manage the embroidery operation.

Through this acquisition, Annin & Co. will secure an uninterrupted flow of domestically produced star fields. This ensures that Annin’s customers will continue to receive American flags made with only the finest US- made components in compliance with the FMAA standards.

Additional details about this transaction will be announced shortly. All questions in the interim should be directed to Lindley Scarlett, Executive Vice-President Sales and Marketing of Annin & Co.