Elamex Subsidiary Precision Tool, Die and Machine Company Files for Chapter 11 Protection

Elamex Subsidiary Precision Tool, Die and Machine Company Files for Chapter 11
Protection
Elamex Board Authorizes Potential Sale of Precision 


EL PASO, Texas, Dec. 19  /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, announced
that its Metal Stamping segment wholly owned subsidiary Precision Tool, Die and
Machine Company ("Precision") has voluntarily filed for protection under Chapter
11 of the Federal Bankruptcy Code in the U.S. Bankruptcy Court to implement a
restructuring of its debt.

As previously announced, Precision has debt agreements that contain a number of
affirmative and negative covenants, including limitations on additional
borrowings and maintenance of certain financial ratios.  Precision was not in
compliance with certain of these covenants as of and for the quarter ended
October 3, 2003.  Precision is not expected to generate sufficient near term
cash flow to fund its short-term liquidity requirements, including the ability
to repay the indebtedness due to the bank and to be in compliance with the
covenants under the loan agreement.

Elamex President and Chief Executive Officer Richard P. Spencer commented,
"Precision's Chapter 11 filing is necessary to protect the interests of its
creditors while we establish and implement a plan for financial restructuring.
Precision has established a debtor-in-possession (DIP) financing package through
its existing bank, which should enable it to address its short-term cash
requirements for operations as it enters the Chapter 11 proceedings."

For the most recent three and nine months ended October 3, 2003, Precision sales
were $18.7 million and $54.9 million, respectively, or 49% and 46%,
respectively, of Elamex's consolidated net sales for the period.  Precision's
third quarter 2003 net loss was $1.8 million.

In related news, Elamex also announced that its Board of Directors has
authorized the adoption of a plan to sell Precision.  Elamex will initiate a
process to actively market and sell the subsidiary as soon as practicable. Any
sale will be subject to the approval of the U.S. Bankruptcy Court. Management
intends to engage the services of an investment advisor to assist in these
efforts.

About Precision Tool, Die and Machine Company

Precision manufactures and powder paints metal stampings primarily for the U.S.
appliance and automotive industries.  Precision employs over 500 personnel at
three facilities located in Louisville, Kentucky, and generated annual revenue
of $75.3 million in 2002.

About Elamex

Elamex ("the Company") 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.  Elamex's competitive advantage results from its
demonstrated capability to leverage low cost, highly productive labor, strategic
North American locations, recognized quality and proven ability to combine high
technology with labor-intensive manufacturing processes in world- class
facilities.  As a value added provider, Elamex's key business objectives include
superior customer satisfaction, long term supplier relationships and employee
growth and development, with the ultimate goal of continuously building
shareholder value.

Press releases by Elamex may include forward-looking statements that involve
risks and uncertainties, including, but not limited to, risks associated with
the Company's future growth and development.  Information contained herein
should be read in conjunction with the Company's periodic filings with the
Securities and Exchange Commission, including its Form 10-Q filing with the
Securities and Exchange Commission for the period ended October 3, 2003.  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.

There is a risk that the bankruptcy filing by Precision may have an adverse
effect on the Company and its business.  The Company has not guaranteed nor is
it otherwise liable for the indebtedness of Precision. However, the Company's
other customers, suppliers and creditors may be concerned that the bankruptcy
filing by Precision will make the Company a less creditworthy consolidated
entity with whom to conduct business and may discontinue business with the
Company or may restrict the extension of credit. If this occurs, the Company's
business and its financial condition could be adversely affected.

For Further Information:  Sam Henry, Chief Financial Officer of Elamex,
[phone], ; or Tom Hudson, President of Precision, [phone], ; or
General Information, Kristen McNally of Financial Relations Board,
[phone], , for Elamex. 

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



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

; or Tom Hudson, President of Precision, [phone],

; or General Information, Kristen McNally of

Financial Relations Board, [phone],

, for Elamex



Web site:  http://www.elamex.com/ 

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