MASSENA, N.Y., Aug. 7, 2006 (PRIMEZONE) -- Michelex Corp. (Pink Sheets:MLXO):
"Michelex" (or the "Company") a plastic manufacturing company and an audio record production group announced that it has completed the second and final part of refinancing to eliminate its obligation with Wells Fargo. The Company, through a deal signed with Utica Leaseco, LLC and Ihop Leasing, LLC d/b/a Omega Leasing, LLC, has paid $1,150,000.00 to Wells Fargo. Wells Fargo has agreed to give the Company until December 24, 2006 to pay the remaining $250,000.00 thus resulting in a total savings to the Company of $703,519.67.
The Company also announced that it completed a financing with the NIR Group, LLC, that will provide the company with $1,200,000.00 in additional working capital over the next 120 days. The Company has already received the initial $400,000.00 in funding. This, together with the money from Wells Fargo, will help to ensure the Company's return to its place as a major US supplier in the optical media packaging industry.
Mr. Gramuglia, President and CEO of Michelex Corp. stated that "I would like to thank all the long term shareholders, customers and employees of the Company for their continuous support during this refinancing period."
The Company is in process of working to complete their audited financials by mid-September and the filings of the 2QSB's, the 10KSB and the SB-2's will all be filed simultaneously to get it re-listed on the OTCBB.
The Company reported that production in New York was running smoothly and sales are steadily increasing. It is still in negotiations with Sagoma Plastics with regard to the potential merger of the two companies.
About Michelex
Michelex Plastics -- Founded in 1972, is a manufacturer/importer and distributor of C-Zero's, Cshells, Norelco Boxes, Jewel Boxes, DVD Boxes and other related specialty plastic products. The company has manufacturing facilities and distribution points in New York and Salt Lake City. The company employs people who are committed to the customers and to the operations of the business. Michelex offers a full range of products through its divisions to make it a one-stop shop for its customers.
Michele Audio -- Audio duplication services and an exclusive rights holder of a large catalog of music and spoken word recordings.
Michelex Media Products -- Producer, supplier and distributor of paper multimedia packaging products, also offering complete fulfillment services to its customers.
Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.