Tefron announces resignation of Board member

23 Jun '09

1 min read

Tefron Ltd, a leading producer of seamless intimate apparel and engineered-for-performance (EFPTM) active wear, announced the resignation of Mr. Micha Korman from the Board of Directors of the Company effective immediately. Mr. Korman served as a director of the Company since October 2002.

Mr. Korman has raised claims regarding the conduct of the management of the Company and the communication between management and the Board of Directors of the Company. On May 28, 2009, the Board of Directors appointed a special committee to examine Mr. Korman's allegations.

The special committee is composed of five directors (including all members of the Company's audit committee, except for Mr. Korman) and the Company's outside legal counsel. The special committee has not yet completed its work. Nevertheless, following an examination by the special committee, the committee has concluded with respect to certain of Mr. Korman's allegations that there is no need to change the conduct of the Company, and this conclusion was also approved by Mr. Korman.

The Company estimates that the special committee will conclude its work within two months, and the Company will issue a press release on the findings of the special committee, if any.

Tefron Ltd

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