Tefron Ltd. is committed to maintaining an atmosphere of open communication and trust between employees and management. Furthermore, as a public company, the integrity of our financial information is paramount. Our financial information guides the decisions of the Board of Directors and is relied upon by our shareholders and the financial markets. For these reasons, we must maintain a workplace where employees who reasonably believe that they are aware of questionable accounting, internal accounting controls, or auditing matters, or the reporting of fraudulent financial information to our shareholders, the government or the financial markets or other conduct in violation of our legal duties can raise those concerns free of any harassment, discrimination or retaliation. Therefore, we encourage those employees to report those concerns as set forth below.

1. Reporting and Investigation
If you have reason to believe that you have become aware of questionable accounting, internal accounting controls, or auditing matters, or the reporting of fraudulent financial information to our shareholders, the government or the financial markets or any other violation of applicable law, you must immediately report it. Examples of reportable actions include, but are not limited to, any indication of fraud, misappropriation of company resources, substantial variation in our financial reporting methodology from prior practice or from generally accepted accounting principles, disclosures in reports filed with the U.S. Securities and Exchange Commission and other public disclosures that are not full, fair, accurate, timely and understandable, conduct that is not honest and ethical, conflicts of interest, potential violations of governmental rules and regulations, and the falsification, concealment or inappropriate destruction of corporate or financial records.