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VLVT may move today on news - Thursday January 22, 7:54 am ET


CITY OF INDUSTRY, Calif., Jan. 22 /PRNewswire-FirstCall/ -- Veltex Corporation (OTC: VLVT - News), as part of its expansion of Veltex Apparel, announced today that it has signed a Letter of Intent to purchase KCA Garment Industries of Dhaka, Bangladesh, one of the largest shirt manufacturers in the Dhaka area with revenues in 2003 of $14.1-million and in 2002 of $12.7-million.
KCA Garment Industries has been manufacturing woven shirts and pants since 1988 and has been a customer of Velvet Textile Mills, buying denim, khaki, twills, and pinpoint oxford fabrics for its manufacturing activities. KCA employs approximately 750 people and operates in a 30,000 square foot plant and warehouse facility.

Through this merger, Veltex Apparel expects to substantially reduce the cost of the finished goods it imports for resale to the promotional products and retail apparel industries. The company will also inherit KCA's long- standing customer relationships with distributors and buyers.

Details of the deal are currently being made final with contract signing expected to take place within the next few weeks.

Veltex Corporation is a vertical holding company composed of three divisions: Veltex Apparel, specializing in caps, apparel and apparel accessories for the Promotional Products Industry; Velvet Textile Mills, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, sheeting for consumer and industrial products; and Veltex Transportation, a trucking company.

http://www.veltexcorp.com
http://www.veltexapparel.com
http://www.veltextransportation.com


Safe Harbor forward-looking statements: 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 Reforms 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.




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Source: Veltex Corporation