UPDATED APRIL 2005 TRADE SECURITYCustoms-Trade Partnership Against TerrorismCONTRACTOR MEMORANDUM OF UNDERSTANDING Kellwood Company has been certified as a participant in the Customs-Trade Partnership Against Terrorism (C-TPAT), a program developed by U.S. Bureau of Customs & Border Security (CBP), designed to minimize security risks of international trade through cooperative efforts by governments, importers, agents, carriers and factories. In September 2002, Kellwood notified its major suppliers of our participation in C-TPAT and our intention to reach through our entire supply chain to include all of our vendors in this program. Many of our suppliers filled out initial questionnaires, based on the C-TPAT Foreign Manufacturer Security Recommendations, to measure their security procedures compared to the recommendations provided by CBP. In addition, since August 2003, we have had our third party monitors complete C-TPAT evaluations as part of our normal social compliance audits. Based on the findings of the factory questionnaires and our compliance audits, we have determined that most of our supplier factories have at least some of the Customs recommended security procedures in place, but in most cases there are still some elements missing.
