CITY OF INDUSTRY, Calif., Jan. 9 /PRNewswire-FirstCall/ -- Veltex Corporation (OTC:VLXC) today announced that the recently authorized share buyback program has reached 471,380 shares. Javeed Matin, CEO stated: "While our focus continues to be the establishment of a self-sustaining North American based corporate entity, we remain dedicated to shareholder value as an important facet of that business. We have demonstrated our resolve in this area by returning almost a half million shares to treasury. The buyback program will go forward as we continue to do our best to reward our loyal shareholders." He continued by saying: "Veltex Corporation's primary business remains the Promotional Products Industry. In order to continue growing our customer base, it is critical that we establish a network of distribution centers through our marketing area so that we may improve efficiencies in both delivery time and cost. Toward that end we had taken action to acquire a warehousing facility in the mid-west to complement our west coast facility in Los Angeles and our Toronto facility covering Canada and the northeastern U.S. During negotiations for the Mt. Zion facility, the gas station had been closed for repairs and we saw an advantage in this circumstance. However, due to delays in obtaining regulatory approvals we have decided to seek other warehousing facilities in the area and have declined to finalize the agreement. We are actively seeking a facility in the southeastern U.S. as well to complete our distribution network." Veltex Corporation remains on-track for our 2006 revenue goal of $70MM with an EPS of $.35. A copy of the complete Q3 financial statement is available on our website at http://www.veltexcorporation.com/. Veltex Corporation headquartered in City of Industry, California, with distribution centers in the USA, Canada and factories in Bangladesh, is a vertical manufacturing and import/export company with five subsidiaries. It designs and manufactures Brand named apparel and Caps for the promotional products industry. Also, it manufactures high quality custom Headwear for Tommy Hilfiger, specialized in Denim shirts, Polo shirt, Twill shirts, Pigment dye enzyme washed extra soft tee shirts, Polar fleece jackets, blankets, Safety Vest, Hooded Fleece and Men's & Ladies Sweaters with all other custom ordered garments. Textile mills specializes in denim, microfilament, velvet, twill, canvas, duck and pinpoints oxford fabrics. Veltex Corporation is committed to providing superior apparel and textile products to the U.S. and Canada at the lowest possible price and with delivery times superior to any in the industry. It is equally committed to always exceeding customer expectations and shareholder value. FORWARD-LOOKING STATEMENTS 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. DATASOURCE: Veltex Corporation CONTACT: Veltex Corporation, +1-909-595-1977 Web site: http://www.veltexcorporation.com/

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