LOW PEG Ratio Stocks

[Growth And Value]

VLXC to expand through acquisition:

CITY OF INDUSTRY, Calif., May 31 /PRNewswire-FirstCall/ -- Veltex
Corporation, (OTC: VLXC) a vertical manufacturing, import and distribution
company for apparel and accessories, announced today that it had signed a
Letter of Intent to acquire the promotional products division of a 30 plus
year manufacturing company. The company manufactures and distributes high
quality promotional products and also markets a significant line of
established, brand name items.
Veltex is a leading supplier to the Promotional Products Industry and is
well positioned to gain further market share from the over 4,000 distributors
of promotional products in Canada, which represents over a $1 billion
marketing industry. Veltex's worldwide headquarters are located in City of
Industry, California.
URL: http://www.veltexcorp.com/ or http://www.veltexapparel.com/
Javeed Matin, CEO of Veltex Corporation, stated, "We anticipate to
consummate this acquisition in the near future for cash and very little stock,
so potential dilution will be minimal. Furthermore, we expect that this
company would contribute approximately $7,000,000 more to our 2005 revenues
and about $1,000,000 to our bottom line, as well as accelerate overall
international growth, expansion, and profitability. We look forward to another
year of strong performance and record profitability."
Previously, Veltex had projected 2005 revenues of around $55 million with
net earnings of about $11 million or $1.38 per share.
Finn Walstad, CEO of OTCGrowth.com, commented, "I remain firmly convinced
that VLXC, now trading around $1.25, has significant appreciation potential
based on its strong revenue growth and profitability forecasts. This well
managed company is currently trading at a Price/Earnings multiple of only
about one times 2005's projected net earnings per share. The shares obviously
appear extremely undervalued and I would expect a rapid expansion of the PE,
perhaps to at least 10 or higher, as the investment community discovers this
hidden gem."

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.

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.


SOURCE Veltex Corporation
Web Site: http://www.veltexcorp.com