CITY OF INDUSTRY, Calif., March 8 /PRNewswire-FirstCall/ -- Veltex Corporation (OTC:VLXC) today announced that it has finalized and signed contracts with the Municipal Government of Wuxi City, Jiangsu, China. This will allow Veltex to begin operations as a major retail and wholesale operation in the city's International Textile and Fashion Mega-Mall or "ITFM." The ITFM complex covers more than 1.30 Million square meters, and is the world's largest textile and clothing trade center. ITFM, located at the intersection of Taihu Avenue and Huning (Shanghai-Nanjing) Expressway in the New District of Wuxi City, is one of the 2007-2008 major construction projects of the Wuxi Municipal Government. Javeed Matin, Chairman and CEO stated, "We are excited to announce this major move for Veltex allowing the company to expand upon the 'Veltex Brand' worldwide. I am very pleased to announce the successful culmination of more than one year of negotiations resulting in an excellent long-term contract. I am highly confident that this project will be immediately accretive to our bottom line in 2007. Veltex and its products will sit center stage in the fastest growing consumer marketplace in the world. This is just the beginning of a long and profitable relationship between' Veltex and the People's Republic of China." Veltex recently announced earnings of more than $70 million or .25 per share and assets exceeding $53 million. Stephen G. Macklem, Chairman of the Committee to Enhance Shareholder Value, will travel with Mr. Matin to Shanghai China at the end of the month. The Grand Opening of ITFM is scheduled for March 28th, 2007. China National Television will cover the opening of the Mega Mall and Veltex will be interviewed on camera. Veltex will also be meeting with investment bankers and government officials of the Shanghai Stock Exchange during its visit. The Company is aggressively exploring the option of the dual listing of its common shares on that exchange. About the ITFM As an important part of the 4.0 million square meters International Textile and Clothing Industrial Park created by the Wuxi Municipal Government, ITFM covers an area of 0.65 million square meters with 1.3 million square meters of floor space. The Clothing and Accessories Trade Area totals 0.58 million square meters, the Textile Trade Area is 0.39 million square meters and the Central Business Area is 0.38 million square meters. Nearly ten thousand enterprises engaged in textile and clothing can be held in the center. ITFM is expected to be the world's largest textile and clothing distribution center and the world's largest brand name clothing and accessories franchise chain center. ITFM will be the gathering place and home of the textile, fabrics, clothing accessory, industrial textile, textile machines and related products from all of China and large foreign textile industrial bases, such as Bangladesh. The mall will be assembling all types of clothing from East China, South China and North China and the international fashion brands from Japan, South Korea, Italy, France and so on. The ITFM will be shaping the global textile and clothing industrial production line with the most complete categories, the most abundant varieties, the most fashionable styles and the best various price-levels. Moreover, it will become the international trade platform with the highest purchasing efficiency and the lowest purchasing cost for the global textile and clothing industry, and it will provide the global purchasers with a one-stop-shopping experience. Interested parties can visit Veltex's website at http://www.veltexcorporation.com/ for more information on the Company. ABOUT VELTEX CORPORATION Veltex Corporation, headquartered in City of Industry, California, with distribution centers in the U.S., Canada, China 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 textiles primarily for use by manufacturers of automobile interiors, upholstery for furniture manufacturers, and ready to wear garments. It 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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