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VLVT - Veltex Corporation Significantly Raises Sales Guidance for 2004

/FROM PR NEWSWIRE LOS ANGELES 213-626-5500/
TO BUSINESS EDITOR:

Veltex Corporation Significantly Raises Sales Guidance for 2004

CITY OF INDUSTRY, Calif., Sept. 24 /PRNewswire-FirstCall/ -- Veltex
Corporation (OTC: VLVT) today raised its financial guidance for 2004 by 60%
from its previously announced net sales estimate of $25 million to
$40 million. Management is providing net income guidance for the full year
2004 of $6 million or $.03 per share.
The improved guidance is due to the increased demand for the Company's
products and the successful integration of the Company's acquisition, KCA
Garment Industries. The acquisition of KCA has provided Veltex with numerous
synergistic benefits including the ability to capture both the market for
manufacturing high quality fabrics and garments. Additionally, the Company
believes this acquisition positions it to compete for business with
high-volume membership warehouse stores and mass merchandisers like Costco
Wholesale Corp. and Walmart Stores Inc.
Javeed Matin, Chairman and CEO stated, "After two quarters of tremendous
growth in sales and profitability I am excited about the future of Veltex.
Our acquisition of KCA has been a tremendous success. We look forward to
continued growth through organic expansion and accretive acquisitions."
Veltex sales were $21.0 million in the first half of 2004, totaled
$19.99 million in 2003, totaled $13.9 million in 2002, and sales in 2001 were
$8.7 million. Audited financial statements for the Company's 2001 and 2002
results are available at the investor relations section of the Company's
website.

Veltex Corporation is a vertical manufacturing, import and distribution
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 KCA Garment Industries, specializing in the
manufacture of garments.

http://www.veltexcorporation.com

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.

For further information, please contact Paul Knopick of E & E
Communications, [phone], [e-mail], for Veltex
Corporation.

SOURCE Veltex Corporation

/CONTACT: Paul Knopick of E & E Communications, [phone],
[e-mail], for Veltex Corporation/Web site:
http://www.veltexcorporation.com /

Sep-24-2004 14:53 GMT
Symbols:
US;VLVT
Source PRN PR Newswire
Categories:
F NWI/FAS NWI/OTC NWI/REA NWI/TEX NWR/CA NWS/ERP MST/I/CLO MST/I/MKT
MST/I/RTB MST/I/TEX MST/L/EN MST/R/US/CA MST/S/ERP TGT/PRN