Veltex Corporation (VLXC)

[Growth And Value]

Yes King I agree the additional shares could very well have been used to purchase KCA Garments, purchase the remaining percentage of Velvet Textile Mills that was not owned by Veltex Corporation as of 12/31/2003, and to convert debt to equity.

In the Anne Tahim audit of 12/31/2002, I noticed Loans payable from Stockholders of $3,195,517.

As of 12/31/2004, I am confident that this debt has been satisfied due to the information briefly posted to the Veltex Investor relations page on the afternoon of Monday, 03/28/2005.

This information also included KCA Garments revenue of 16,400,000 and Velvet Textile Mills revenue of 24,600,000.

Net income was $2,284,750 and $3,728,728 respectfully.