Cotton Incorporated 2008 Annual Report

The Accounting Department continues to support the Cotton Incorporated mission through its dual role of providing information and analyses to both internal and external customers, and ensuring the formulation and enforcement of Company policies that safeguard Company assets.

The department undertook a major project in 2008 to map out potential risks that could be present in the capturing of financial data and what controls are available to keep those risks from becoming a reality. The department is testing each of these controls to ensure they are being performed. The goal of this project is to ensure that company assets are being properly safeguarded and that sound financial information is provided on a monthly and annual basis to all of our management team for their decision making.

The department has also undertaken an initiative to perform reviews of the invoices received for research contracts. This is meant to ensure that contract parties are properly adhering to agreements and are being good stewards of the company’s budgeted funds. In the upcoming year this project will be expanded to include our primary advertising agencies.

As we go into 2009, the department will strive to look for new ways to better serve its internal and external customers with their reporting and forecasting needs. Additionally, it will continue to encourage open communication with all parties to foster better understanding and fulfillment of needs.

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Treasury & Investment Services

Treasury & Investment Services oversee some of Cotton Incorporated’s key benefit plans to ensure efficiency and compliance with federal regulations. A review of policies, procedures and controls regarding cash and foreign activities has also taken place this year. Some increased measures have been undertaken to further protect the integrity of those systems.

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Information Technology

Information Technology (IT) functions as a service and support system within Cotton Incorporated. It is responsible for the implementation, operation and maintenance of corporate information systems utilized for the multiple projects to benefit the cotton industry and fulfill the company’s mission. IT strives to implement proven and cost-effective technologies that provide employees, clients, and consumers with reliable and accurate systems to enhance Cotton Incorporated’s ability to increase the demand for cotton, as well as compete successfully in the global marketplace. IT accomplishes its service and support goals through team work, individual development, and technical innovation.

In 2008, IT focused on implementing a converged network solution providing voice, data, and video services for the Shanghai and Hong Kong offices. The new network represents state-of-the-art technology enabling simpler management of systems while offering users faster and more reliable access to corporate information and communication.

Helping to reduce internal travel costs, Cotton Incorporated utilizes Video Conferencing between corporate locations to enhance communication and information exchange between internal meeting participants. In an effort to further help reduce travel costs and promote rapid information exchange with the industry, Cotton Incorporated will be extending Video Conferencing solutions to outside participants starting the first quarter of 2009. To make this effort possible, IT implemented a service-based solution eliminating the need for capital equipment purchases while still providing secure, reliable, and quality Video Conferencing connections.

Application development is a function many departments and employees of Cotton Incorporated rely on IT to fulfill. Several new proprietary and business applications were developed to carry out research program requirements and tracking. The pipeline application manages information related to the status of research projects flowing through Cotton Incorporated’s Research facility. The Dyeing and Finishing application manages all projects run through the lab providing users with real-time status and project updates. In addition, many new reports were developed for new and existing database applications via SQL reporting services to aid in tracking and reporting of metric based information.

Cotton Incorporated uses the Internet to communicate its message to the industry, as well as to consumers. IT helps facilitate the use of this technology by working with the Company’s Research, Marketing, and Advertising Departments to design, produce, and host Cotton Incorporated’s corporate and consumer Web sites. In this capacity in 2008, IT continued its maintenance of www.cottoninc.com, including daily updates of the most current global market and research information, as well as highlights of new textile technologies. The department also developed a new Cotton Sustainability section for the site, which keeps the industry and interested consumers aware of ongoing environmental gains being made in the cotton industry.

In 2008, the department supervised the redesign of the consumer Web site, www.TheFabricOfOurLives.com. This site is updated seasonally with the latest fashions and styles in cotton products from bedding to blue jeans, expert fabric care tips, purchasing advice, and home decorating ideas. The redesign enhanced navigation, organization and overall aesthetics to maintain the interest of the site’s core visitors and to aid in attracting new ones.

The IT Department was also actively involved with the development of a new site in 2008, www.CottonCampus.org. This fun-filled educational site is aimed at children, parents and educators, and provides educational resources about the cotton industry. An interactive game show, designed for Cotton Incorporated by DDB, “Do You Know Green?” was added to TheFabricOfOurLives.com and MysteryFabric.com Web sites. In all, these additions increase the knowledge base available to the users of our Web sites and increase brand awareness of cotton.

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