UPDATE: Veltex Corporation Issues "No Comment" on Stock Activity

   Veltex Corporation (PINKSHEETS: VLXC) announced that as a result of unusual stock activity in the company's common shares, it will issue the following statement:

Veltex maintains that it is not aware of any corporate developments that might explain the stock activity, and it is the company's policy not to comment on unusual activity or rumors.

On Wednesday, March 23, the company's stock closed higher to close at $1.99 per share on more than 27,000 shares.

Veltex is pursuing numerous pieces of major litigation with various counts in both Federal and State courts. That litigation is progressing. The company will update, from time to time, the advancement of that litigation.

Details and copies of the litigation and other parallel suits can be found on the corporation's website at www.Veltex.com.

Safe Harbor Statement

Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors.

Veltex Corporation 123 West Madison Street Suite 1500 Chicago, IL 60602 312-235-4014