MASSENA, N.Y., May 12, 2006 (PRIMEZONE) -- Michelex Corp. (Pink Sheets:MLXO) "Michelex" (or the "Company"), a plastic manufacturing company and an audio record production group, announced today that it was successful in carrying out the first part of the agreement with Wells Fargo Business Credit and has paid them $1,025,000.00. Michelex is on schedule to complete the second part of the agreement to satisfy the remaining debt in the sum of $1,400,000.00 to Wells Fargo Business Credit before the August 31, 2006 deadline. Michelex anticipates finalizing this payment much before the deadline. This will result in a net gain for Michelex in the sum of $633,684.18.
Michelex also announced that on April 28, 2006, it has completed the sale of its building in Salt Lake City which has reduced its debt by $2,400,000.00 after sales expenses. Michelex will continue to have use of the building for the next three years. This will significantly reduce its operating costs in Salt Lake City.
Michelex has signed an agreement to purchase a manufacturing line that produces the 5.2mm ultra slim cd jewel box. Once this new line is fully operational, it projects an increase in revenues of approximately $300,000.00 per month. This product line, which was imported in the past, will strengthen Michelex's position as a manufacturer of optical media packaging products made in the USA. The "Made in USA" will be a big selling tool for Michelex in its new retail website projected to go on line within the next few months.
Thomas Gramuglia, CEO of Michelex stated that "We feel the Michelex share price is under valued. Michelex will be returning to the OTCBB much sooner than anticipated. We are waiting for the Accounting and Audited Financials to be completed."
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.