Veltex's New Business Model Results In Restructuring

Following a year spent reviewing Veltex Corp.’s operations, assets, liabilities, markets and opportunities and resultant sale of its manufacturing operations last December, the Board of Directors of the City of Industry, Calif.-based apparel designer and manufacturer has decided to place greater emphasis on importation and distribution in the US and Canadian markets. Veltex also will reduce its product line and focus more on such popular items as T-shirt, fleece and denim apparel.

The company expects this new business model will enable it to respond in a timelier manner to fashion changes, reduce delivery times, provide better customer service and gain new customers. It also hopes to achieve increased online sales through its new, redesigned website, www.veltex.com, scheduled to go live later this month.

“This has been a long and arduous process, and at times frustrating and painful,” said Javeed Matin, CEO. “But it was essential to make these hard assessments and adjustments to ensure that Veltex could compete profitably in a global economy which is becoming increasingly changing and demanding. We are predicting revenues of $10 million to $15 million in 2008 and expect to achieve customary industry level of profitability.”

As a result of its new direction, Veltex hopes to add new members to its Board of Directors and to its advisory board. It also anticipates hiring additional sales representatives.

March 4, 2008