Veltex Corporation (VLXC)

[Mastman]

Press Release Source: Veltex Corporation


Veltex Corporation Continues Strong Earnings for 2006, Veltex-Canada Moves to Larger Facility
Wednesday June 28, 11:14 am ET


CITY OF INDUSTRY, Calif., June 28 /PRNewswire-FirstCall/ -- Veltex Corporation (OTC: VLXC - News) today announced: Due to accelerating demand for its products and in a move to improve efficiencies Veltex-Canada and Veltex-Explorer have merged as Veltex-Canada and relocated to a new, larger and more modern facility.
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Javeed Matin, CEO of Veltex Corporation stated: "We are very encouraged with the results of our first quarter as we continue to grow our business at a rapid pace. Our immediate goal has been to accumulate sufficient product in our warehouses to satisfy the rising demand for our products as new licensing agreements come on-line. Our expectations are based upon commitments from our new retail clients who have been extremely encouraging in this regard as well as the response we are receiving from our promotional product distributors throughout Canada. To that end we have moved our Veltex-Canada operation to a new 30,000 sq ft warehouse located at 146 Sparks Ave. North York, ON M2H 2S4. Our new facility will insure our ability to supply our retail and promotional products clients in a more efficient manner, assuring them and us a reliable and profitable future. The new warehouse is presently open. Our sales staff is standing by to assist all of our Canadian customers at 416-494-1991."

He continued by saying, "We expect revenue in the promotional products division alone to exceed $6,000,000 this year and grow to more than $10,000,000 with our new facility over the next 12 months." Projections in the retail supply arm will be forthcoming as they are developed.

The shares outstanding remain at 16,541,309.

Veltex Corporation is a vertical manufacturing import and distribution company composed of four divisions: Veltex Apparel, specializing in caps, apparel and apparel accessories for the Promotional Products Industry and distribution of merchandise in the U.S. market; Veltex-Canada a retail supply and promotional products company with more than sixteen major retail clients and over 8,000 promotional products distributors; Velvet Textile Mills, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, and sheeting for consumer and industrial products; and KCA Garment Industries, specializing in the manufacture of garments.

Safe Harbor: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of market prices, product demand, market competition, risks inherent in the Company's international operations, and the Company's ability to replace and expand.

URL: http://www.veltexcorp.com/ or http://www.veltexapparel.com/ or http://www.explorergear.com




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Source: Veltex Corporation