Elamex Receives Nasdaq Notice Relating to Late Filing of 10-Q Report With SEC

Elamex Receives Nasdaq Notice Relating to Late Filing of 10-Q Report With SEC 


EL PASO, Texas, Nov. 28  /PRNewswire-FirstCall/ -- Elamex S.A. de C.V. , a
diversified manufacturing services company with food, plastics and metals
operations and real estate holdings in Mexico and the United States, today
announced that it has received a notice from Nasdaq Listing Qualifications
relating to the late filing of the Company's Form 10-Q report with the
Securities and Exchange Commission (SEC) for the third quarter ended October 3,
2003.  The Company was notified by Nasdaq that it had not received the Company's
Form 10-Q for the period ended October 3, 2003 as required by Marketplace Rule
4310 (c)(14) and that its securities will be delisted from The Nasdaq Stock
Market at the opening of business on December 5, 2003 unless the Company
requests a hearing in accordance with the Marketplace Rule 4800 Series.  The
Company will be requesting a hearing that will stay the delisting of the
Company's securities pending the Panel's decision.  The Company currently
anticipates that a hearing will be held within three weeks from the date of the
Company's request for such hearing.

Elamex filed a Form 12b-25 report ("Notification of Late Filing") with the SEC
on November 18, 2003 which noted that the Company was unable to file Form 10-Q
without unreasonable effort or expense due an unexpected result in a physical
inventory performed as of October 31, 2003, by the Company's Metal Stamping
segment subsidiary Precision Tool, Die and Machine Company ("Precision"). 
Elamex was subsequently unable to file its 10-Q report within the five-day
extension sought in conjunction with the Form 12b-25 filing.

"We intend to comply fully with the Nasdaq's requirements and will request a
hearing to present our case," said Richard P. Spencer, Chief Executive Officer
of Elamex.  "Precision has not yet completed its comprehensive review of the
inventory and the reconciliation to recorded accounts which may reduce inventory
balances and increase cost of goods sold by an amount in the range of $1.5
million to $2.1 million for the third quarter of 2003.  Inventory adjustments in
this range would raise questions about underlying systems and controls, could
have an adverse impact on Precision bank borrowing arrangements, and could
adversely impact Precision's ability to maintain liquidity.  Therefore, we are
taking additional time to conduct an exhaustive review before presenting our
conclusive findings.  We are hopeful that we will receive a favorable outcome
from the Nasdaq Listing Qualifications panel with regard to the continued
listing of Elamex shares on the Nasdaq National Market."

As a result of Elamex's SEC filing delinquency, Nasdaq will append the fifth
character "E" to Elamex's trading symbol.  Accordingly, the trading symbol for
the Company's securities will be changed from ELAM to ELAME at the opening of
business on December 1, 2003.

About Elamex

Elamex is a Mexican company with manufacturing operations and real estate
holdings in Mexico and the United States. The Company is involved in the
production of food items related to its candy manufacturing and nut packaging
operations, and metal and plastic parts for the appliance and automotive
industries.

This press release includes forward-looking statements that involve risks and
uncertainties, including, but not limited to, risks associated with possible
inventory adjustments.  Information contained herein should be read in
conjunction with the Company's periodic filings with the Securities and Exchange
Commission.  The forward-looking statements are made pursuant to safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Actual
results could differ materially. Factors that could cause actual results to
differ include, but are not limited to, the following:

     *  As noted above, the Company intends to request a hearing with The
        NASDAQ Stock Market, Inc. to ask that its common stock continue to
        be listed for trading until the filing of the Company's Form 10-Q
        for the quarter ended October 3, 2003.  The Company will file the
        Form 10-Q as soon as is reasonably practicable.  The Company is
        hopeful that the request to allow the Company's common stock to
        continue to be listed will be granted.  However, there is no
        assurance that the Company will be successful in this regard.
        Accordingly, the delisting of our common stock could adversely
        affect the price of a share of common stock and the ability of our
        stockholders to sell their shares of our common stock.

     *  As a result of the Company's failure to file its Form 10-Q in a
        timely manner, the Company may be subject to inquiry or
        investigation by governmental authorities, including the Securities
        and Exchange Commission.  In the event that the Company becomes
        subject to such an inquiry or investigation, the Company will fully
        cooperate with such inquiry or investigation.  There is a risk that
        such an inquiry or investigation could result in substantial costs
        and divert management attention and resources from our business,
        which could adversely affect our business.

     *  In the past, private securities class action litigation has been
        brought against companies after events occurred that caused
        volatility in market prices.  Due to the recent announcement of the
        failure to timely file the Form 10-Q, there is a risk that private
        securities litigation may be brought against the Company.  There is
        a risk that such litigation could result in substantial costs and
        divert management attention and resources from our business, which
        could adversely affect our business.

     *  The Company's stock price may become volatile, in part, due to the
        announcement of its failure to timely file its Form 10-Q.



For further information please contact:  Sam Henry, Chief Financial Officer of
Elamex, [phone], ; or General Information, Kristen McNally,
[phone], , or Investor Information, Brandi Piacente, [phone], ,
both of Financial Relations Board, for Elamex. 

DATASOURCE: Elamex S.A. de C.V.



CONTACT:  Sam Henry, Chief Financial Officer of Elamex, [phone],

; or General Information, Kristen McNally,

[phone], , or Investor

Information, Brandi Piacente, [phone],

, both of Financial Relations Board, for

Elamex

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