1. DAWSON INTERNATIONAL PLC HALF YEAR RESULTS 2009 David Bolton, Chairman Andy Bartmess, CEO Dave Cooper, CFO

2. DAWSON INTERNATIONAL PLC 1 Continuing operations exclude Todd & Duncan and Home Furnishings - Branded 2 Introduction  Key messages  Half year results  Full year outlook  Pensions

3. DAWSON INTERNATIONAL PLC 1 Continuing operations exclude Todd & Duncan and Home Furnishings - Branded 3 KEY MESSAGES  Results in line with expectations  Revenues from continuing operations 1 £17.5m (2008: £17.6m).  Operating loss from continuing operations 1 £1.9m (2008: £0.4m)  Cash outflow £9.7m (2008: £4.0m)  Net debt £4.0m (2008: £9.7m)  Key objective to reduce exposure to DB pension schemes  Phased exit from Dorma branded business on schedule  Disposal of Todd & Duncan achieved a critical strategic objective and will generate c. £11m cash  Platform of profitable businesses and sound funding

4. DAWSON INTERNATIONAL PLC 4 Half Year Results Profit & Loss OPERATING RESULTS OF CONTINUING BUSINESSES salesProfit (loss) 2009 £000s 2008 £000s 2009 £000s 2008 £000s UK Knitwear2,8594,254(124)443 US Knitwear1,6522,048(1,171)(843) Home Furnishings (PL)12,99811,2872441,665 Central costs--(828)(1,667) Ongoing businesses17,50917,589(1,879)(402) Home Furnishings (Br)6,58210,575(867)(1,348) Reported24,09128,164(2,746)(1,750)

5. DAWSON INTERNATIONAL PLC 5 Half Year Results Profit & Loss  Both knitwear businesses reported lower turnover and profits Last year was a record year for both businesses, customers well/over stocked Both are seasonally biased to the second half, particularly the US business. Order books indicate that sales for the full year will be well down on last year’s levels.  Home Furnishings (Private Label) sales up 15% but operating profit well down. 25% strengthening of the USD increased sourced product cost which had to be absorbed.  Net central costs halved to £0.8m £0.3m King Deer proceeds, £0.3m reduction in professional fees (pensions), £0.2m FX.  Home Furnishings (Branded) sales down £4m, losses reduced by £0.5m Phased exit from concession stores on track  Exceptional charge of £0.1m incurred by UK Knitwear (redundancies)  Interest cost halved due to lower average borrowings  Tax charge of £0.6m incurred by US Knitwear business Profits of $6.5m only partly offset by capped losses brought forward.  Discontinued business reviewed on following slide

6. DAWSON INTERNATIONAL PLC 6 Half Year Results Todd & Duncan disposal £million 2009 6 months 2008 Year 2007 Year 2006 Year 2005 Year 2004 Year Turnover12.421.519.920.024.623.1 Operating profit (loss)(0.3)0.5(0.7)(0.6)1.60.6 Interest (10% ACE)(0.9)(1.6)(1.9)(2.0)(1.8)(1.5) Exceptional charges--(0.2)- (0.3) PBT(1.2)(1.1)(2.8)(2.6)(0.4)(1.2) Average capital employed18.816.319.020.218.117.3 Capital expenditure0.3-0.20.62.0

7. DAWSON INTERNATIONAL PLC 7 Half Year Results Todd & Duncan disposal  Transaction completed on 28 th August 2009  Reasons for the disposal: Business consistently loss making after financing charges Many strategic challenges, including excess worldwide capacity, need to relocate, downsize and re-equip.  Financial consequences of the sale: Business, fixed assets and stocks sold, debtors and creditors retained. £6.1 million initial sale proceeds for the business, fixed assets and stocks (to be adjusted based on agreed completion account balances) Four year trading agreements between Todd & Duncan/Barrie and Forte/Zhongyin c. £5.5 million working capital to be realised, funding capacity on stocks and debtors lost. Loss on disposal of £5.0m (£4.2m book loss on assets sold and £0.8m costs)  Operating losses of £0.3m in the (normally profitable) first half and will incur further losses in July/August.  Reported loss on discontinued operations £5.3m, £5.0m loss on disposal and £0.3m first half operating losses.

8. DAWSON INTERNATIONAL PLC 8 Half Year Results Summary Balance Sheet £000s20092008 Fixed assets -Continuing -Todd & Duncan 1,083 1,353 2,015 2,401 Working Capital -UK Knitwear -US Knitwear -Home Furnishings (Private Label) -Home Furnishings (Branded) -Todd & Duncan -Central 349 1,835 3,794 3,754 15,965 (911) 1,725 4,341 4,180 5,957 14,224 (1,431) Provisions -Loss on sale of Todd & Duncan -Dorma closure costs -Other (4,842) (989) (1,471) - (1,515) Retirement benefit obligations(6,306)(4,701) Tax1,3741,404 Net debt(3,963)(9,678) Net assets11,02518,922

9. DAWSON INTERNATIONAL PLC 9 Half Year Results Summary Balance Sheet  Fixed assets reduce from £4.4m to £2.4m due to sale of Dorma Brand and Todd & Duncan impairment charge of £1m in 2008.  Working capital reduces £4.2m from £29.0m to £24.8m £3.9m reduction at the Knitwear businesses reflecting lower activity this year £2.2m reduction at Home Furnishings (Branded) as we exit that business £1.7m increase at Todd & Duncan due to higher stocks  Provisions established for loss on sale of T&D and for Dorma closure costs.  Retirement Benefit obligations discussed on slide 15  No significant change in the tax balance which relates mainly to £1.5m deferred tax asset in respect of US Knitwear  Net debt/Cash flow discussed on slide 11  Net assets reduced by £7.9m 2 nd half profit 2008£2.1m 1 st half loss 2009£(9.0)m Actuarial loss on DB schemes£(2.5)m Exchange£1.4m Share based payments adjustment£0.1m

10. DAWSON INTERNATIONAL PLC 10 Half Year Results Summary Cash Flow £000s 2009 H1 2008 H2TOTAL EBITDA(2,826)2,337(489) Working capital(3,430)7,9674,537 Provisions(1,430)61(1,369) Pension contributions(175)(887)(1,062) Capital expenditure(317)(175)(492) Interest(256)(314)(570) Tax(565)(210)(775) Sale of Todd & Duncan/Dorma Brand(176)4,5234,347 Exchange(476)2,0641,588 Change in net debt(9,651)15,3665,715 Opening Net debt5,688(9,678) Closing net debt(3,963)5,688(3,963)

11. DAWSON INTERNATIONAL PLC 11 Half Year Results Summary Cash Flow  Cash flows are highly seasonal Loss making 1 st half, profitable 2 nd half Build working capital 1 st half, release working capital second half. This will become less pronounced with the sale of Todd & Duncan  £5.7m funds generated over 12 month period Net proceeds of Dorma brand sale c. £3 million. Reduction of working capital £4.5m.  Pension deficit contributions reduced from £887k (all paid in 2 nd half in 2008) to £350k p.a.  2 nd half 2009 will benefit from the disposal of Todd & Duncan

12. DAWSON INTERNATIONAL PLC 12 Full Year Outlook Revenues £ million H1 Actual H2 Broker’s Forecast 2009 Year Estimate 2008 H2 2008 YEAR +/- H2 +/- Year UK Knitwear2.94.17.05.810.0(1.7)(3.0) US Knitwear1.624.426.032.034.0(7.6)(8.0) Home Furnishings (PL)13.012.525.511.923.10.62.4 Central------- Ongoing17.541.058.549.767.1(8.7)(8.6) Home Furnishings (Br)6.64.911.59.620.2(4.7)(8.7) Reported24.145.970.059.387.3(13.4)(17.3) UK Knitwear factory loaded through to year end with lower value business taken to maintain production US Knitwear sales reduction reflects order book position at end June. Home Furnishings (Private Label) increase consistent with first half performance Home Furnishings (Branded) reduction reflects phased exit from the business

13. DAWSON INTERNATIONAL PLC 13 Full Year Outlook Operating Profit /(Loss) £ million H1 Actual H2 Broker’s Forecast 2009 Year Estimate 2008 H2 2008 YEAR +/- H2 +/- Year UK Knitwear(0.1)0.30.21.11.5(0.8)(1.3) US Knitwear(1.2)2.91.74.43.6(1.5)(1.9) Home Furnishings (PL)0.20.40.61.22.8(0.8)(2.2) Central(0.8)(1.3)(2.1)(3.4)(5.0)2.12.9 Ongoing(1.9)2.30.43.32.9(1.0)(2.5) Home Furnishings (Br)(0.9)(0.6)(1.5)(1.1)(2.4)0.50.9 Reported(2.8)1.7(1.1)2.20.5(0.5)(1.4) UK Knitwear profit reduction reflects low margin business accepted to maintain production US Knitwear profit reduction a function of their lower sales Home Furnishings (Private Label) shows some margin recovery from weaker USD with higher second half profit on lower sales. H1 central costs benefited from King Deer receipt of $0.5m. A further payment of $1.0m is due at the end of December but is not assumed in the forecast. Home Furnishings (Branded) losses decline as the business is exited.

14. DAWSON INTERNATIONAL PLC 14 Pensions UKUSTOTAL Scheme membership Active Deferred Pensioner 155 (i) 1,849 1,503 - 149 849 155 (i) 1,998 2,352 Total3,5079984,505 IAS19 valuation (December 2008) Assets Liabilities £m 93.7 (98.2) £m 4.7 (6.9) £m 98.4 (105.1) Deficit(4.5)(2.2)(6.7) (i) Includes 84 members at Todd & Duncan who became deferred members on the sale of the business

15. DAWSON INTERNATIONAL PLC 15 Pensions  The IAS 19 deficit has fluctuated between £30m and £5m in the past 5 years.  There is a disconnect between the IAS19 valuation and the actuarial valuation which forms the basis of any recovery plan.  The 2009 triennial actuarial valuation is in progress and is likely to result in a significant increase in the deficit because of asset values at the valuation date (April) revised mortality assumptions guidance from the Regulator in assessing the covenant of the Company  Associated costs (professional fees and PPF levy) are high  Key objectives are therefore To manage down the size of the schemes by offering e.g. enhanced transfer values, cash commutations, early retirement options. To agree a recovery plan and schedule of contributions with the Trustee and Regulator based on the principle of affordability but recognising the need to invest in and grow the Company and provide shareholders with a return on their investment.

16. DAWSON INTERNATIONAL PLC 1 Continuing operations exclude Todd & Duncan and Home Furnishings - Branded 16 Summary  H1 2009 results disappointing Operating loss from Todd & Duncan in normally profitable period Losses from Todd & Duncan disposal and Home Furnishings (Branded) exit Knitwear businesses experienced significant reduction in demand due to economic conditions USD exchange rate impacted Home Furnishings (Private Label) margins  Continuing operations 1 expected to be in operating profit for the year despite economic conditions However insufficient to offset losses from T&D and Home Furnishings (Branded)  Completion of the Todd & Duncan sale was a critical achievement Leaves Dawson with a strong core of businesses with a history of excellent returns Platform for future growth  Managing the pension scheme deficits is a key objective Reducing the overall size of the schemes Agreeing an affordable recovery plan/schedule of contributions Minimising associated costs