Tefron Ltd. announced that on September 27, 2012, the company approved a licensing agreement with X-Technology Swiss Research & Development AG (XTS) in which Tefron has been granted exclusive rights to manufacture, market and distribute XTS sportswear brands in North America. According to the agreement, XTS appoints Tefron to be the manufacturer and exclusive distributor of its sportswear and socks in North America and gives Tefron limited license to use its intellectual property to manufacture the products. Tefron assumes responsibility for all sales and distribution operations including advertising, marketing and promotion of products under the trademarks of XTS and will be responsible for managing and training sales representatives and training retailers.

The agreement leaves open the possibility for future manufacture of other XTS products by Tefron.