Value Microcaps Motherboard

[Rawnoc]

Veltex Apparel Opens Distribution and Marketing Arm in Canada to Gain Market Share of a $1 Billion Industry From Over 4,000 Distributors of Promotional Product Companies
Monday April 11, 8:00 am ET


CITY OF INDUSTRY, Calif., April 11 /PRNewswire-FirstCall/ -- Veltex Corporation, (OTC: VLXC - News) a vertical manufacturing, import and distribution company for apparel and accessories, announced today that it has completed setting up operations in Canada. Veltex has set up a satellite office based in London, Ontario Canada to take advantage of the growing business relationships in the Canadian marketplace. Veltex Apparel is positioned well to gain market share from the over 4,000 distributors of promotional products in Canada which represents over a $1 billion marketing industry.
Veltex Corp. clearly has enormous appreciation potential based on its realistic revenues and net profits projections. It is very rare to discover a company whose stock is so undervalued and yet has everything in place for a dynamic near-term upward move to significantly higher prices. Veltex is a well managed company, with a strong vertical infrastructure in place that expects to generate revenues in excess of $55 million in 2005 with net profits of over $11 million or approximately $1.38+/- net earnings per share (EPS) A 35% increase from 2004.


-- 2005 Projected Revenue $55mm
-- 2005 Projected Profit $11mm
-- 2005 Projected Net Earnings $1.38 per share a 35% increase from 2004

Jordan Ross, Vice President Sales and Marketing of Veltex Corp., commented, "We are very excited to have entered the Canadian market. We expect that this move will produce strong revenues and profitability for Veltex. Furthermore, we are looking forward to joining the Promotional Products Association of Canada. This will provide us with many opportunities to meet our new distributors at trade shows throughout Canada. This is a huge step towards making Veltex a world class apparel company."

Vice President of Canadian Division, Veltex Apparel, James Burke, expects to hire up to 5 sales representatives. The new sales representatives will primarily focus on expanding Veltex's presence and making the company a major player in the promotional products industry throughout Canada. Mr. Burke commented, "Since the Canadian government has allowed any apparel imports from Bangladesh to be duty free, Veltex will enjoy about a 20% savings which will be applied to our bottom line."

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 and distribution of merchandise; 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.veltexcorp.com/ http://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.




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Source: Veltex Corporation