Wise Investments

[walkingmoney]

Some more DD on (VLXC) Walk


CITY OF INDUSTRY, Calif., Oct 5, 2004 /PRNewswire-FirstCall via COMTEX/ -- Veltex Corporation (VLXC, Trade) today updates shareholders on corporate developments.

Veltex announced the successful start up of Veltex Apparel, its new United States based distribution company. Veltex Apparel is expected to add considerable sales and increase profit margins in 2005. The Company now controls the entire process for its products from the beginning manufacturing of fabrics, to producing the end products and finally distributing them to its customers. Through this vertical integration the Company eliminates layers of middlemen thereby significantly reducing costs.

The 2005 Veltex catalog is completed and has several products it plans to market to major retailers. Kohl's, Target, JCPenney, Sears, Wal-Mart and Kmart are all retailers the Company plans to pursue business with in 2005. The catalog will soon be available for download at the Company's website.

A large source of new business for Veltex comes from attending trade shows. In 2004, the Company attended shows in Las Vegas, Long Beach, Chicago, New Jersey and Dallas. These shows can bring in over $1 million in sales per show. Next year Veltex plans to at least double the amount of trade shows attended.

Additionally, the Company said the 2003 audit should be completed in the next 45-60 days and the Company plans to post the audit on the Company's website upon completion. Furthermore, Veltex expects to have its 2004 audit done in the first quarter of 2005.

Javeed Matin, Chairman and CEO states, "We are very excited by the current growth that Veltex is experiencing. The trade shows have been a tremendous success for us and we are committed to attending more quality trade shows next year. Our distribution company has huge potential too. We believe the distribution company alone could become a $100 million sales entity over the next few years. Veltex has positioned itself nicely to become a major player in the apparel market and we look forward to our future success."

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.



www.veltexcorporation.com
www.veltexapparel.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 investor relations please contact: Paul Knopick at 949/707-5365, [e-mail]

SOURCE Veltex Corporation


Investor Relations, Paul Knopick, [phone],
[e-mail], for Veltex Corporation

http://www.veltexapparel.com

Copyright (C) 2004 PR Newswire.