Michelex Corp. (Pink Sheets:MLXO)
has reached and signed a settlement agreement with Wells Fargo to end any/all
litigation.
Michelex has agreed to pay Wells Fargo $1,025,000.00 by April 20, 2006. Michelex
also agreed to pay $1,400,000.00 by August 31, 2006 in full settlement of all
debt to Wells Fargo. In turn, Wells Fargo has agreed to forgive $633,684.18 of
debt for any claims Michelex has against Wells Fargo. Thomas Gramuglia feels
that this settlement was necessary in order for the company to return to
"pre-2004" levels and regain its market share.
Michelex is also pleased to announce to further reduce its' debt, it has signed
an agreement to sell its building in Salt Lake City, Utah. In the agreement,
Michelex will continue to rent space so its manufacturing facility will continue
to operate. The first years' rent was included in the sale price. Once the sale
is finalized which is expected on April 21, 2006, the company's debt will be
reduced by $2,500,000.00.
These developments are very positive for the company and will allow the company
to implement its plan to move forward and regain profitability.
ABOUT MICHELEX
Michelex Plastics, founded in 1972, is a manufacturer/importer and distributor
of C-Zero's, Cshells, Norelco Boxes, Jewel Boxes, DVD Boxes and other related
specialty plastic products. The company has manufacturing facilities and
distribution points in New York and Salt Lake City. The company employs people
who are committed to the customers and to the operations of the business.
Michelex offers a full range of products through its divisions to make it a
one-stop shop for its customers.
Michele Audio - Audio duplication services and an exclusive rights holder of a
large catalog of music and spoken word recordings.
Michelex Media Products - Producer, supplier and distributor of paper multimedia
packaging products, also offering complete fulfillment services to its
customers.
Safe Harbor:
This release may contain forward-looking statements within the meaning of the
Private Securities Litigation reform Act of 1995. The risks and uncertainties
that may affect the operations, performance development and results of the
Company's business include but are not limited to fluctuations in financial
results, availability and customer acceptance of our products and services, the
impact of competitive products, services and pricing, general market trends and
conditions, and other risks detailed in the Company's SEC reports.
CONTACT: Michelex Corp.
Thomas Gramuglia
(315) 769-6616
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