MASSENA, N.Y., April 12, 2006 (PRIMEZONE) -- Michelex Corp. (Pink Sheets:MLXO) has reached and signed a settlement agreement with Wells Fargo to end any/all litigation.
Michelex has agreed to pay Wells Fargo $1,025,000.00 by April 20, 2006. Michelex also agreed to pay $1,400,000.00 by August 31, 2006 in full settlement of all debt to Wells Fargo. In turn, Wells Fargo has agreed to forgive $633,684.18 of debt for any claims Michelex has against Wells Fargo. Thomas Gramuglia feels that this settlement was necessary in order for the company to return to "pre-2004" levels and regain its market share.
Michelex is also pleased to announce to further reduce its' debt, it has signed an agreement to sell its building in Salt Lake City, Utah. In the agreement, Michelex will continue to rent space so its manufacturing facility will continue to operate. The first years' rent was included in the sale price. Once the sale is finalized which is expected on April 21, 2006, the company's debt will be reduced by $2,500,000.00.
These developments are very positive for the company and will allow the company to implement its plan to move forward and regain profitability.
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.