Veltex To Enter Designer Clothing

City of Industry, Calif.-based Veltex
Corp. reports it plans to expand into the designer clothing industry under the trade name
VeltexWest with the goal of introducing a men’s line during New York’s 2007 fashion week. The
textile and apparel manufacturer, distributor and importer will market VeltexWest products under
its existing licensing brands such as Veltex Apparel®.

The move is a “natural step in the evolution of Veltex,” said Javeed Matin, CEO. “Our
investment will permit us to become a major player in the retail supply business in addition to the
promotional products industry,” he said.

Veltex recently acquired the retail supply division of a major Canadian textile company.
That division, operating under the Veltex-Canada name, will become Veltex’s US and Canadian retail
supply business. Two of the four divisions that comprise Veltex are Veltex Apparel and Veltex
Explorer Inc., which service the Canadian and US promotional products industries, respectively. The
company’s Velvet Textile Mills division produces consumer and industrial fabrics, and its KCA
Garment Industries division manufactures apparel.

June 13, 2006