ELAM Elamex S.A. DE C.V. (MM)

Elamex Comments on Delay of Third Quarter 2003 Financial Results EL PASO, Texas, Nov. 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, today commented on reasons for the delay of its third quarter 2003 financial results press release and conference call, and the late filing of its Form 10Q report with the Securities and Exchange Commission (SEC) for the period ended October 3, 2003. The Company filed a Form 12b-25 report ("Notification of Late Filing") with the SEC on November 18, 2003. In that report, the Company noted that it was unable to file Form 10-Q without unreasonable effort or expense due an unexpected result in a physical inventory performed as of October 31, 2003, by the Company's Metal Stamping segment subsidiary Precision Tool, Die and Machine Company ("Precision"). Precision management believes that inventory adjustments are required as of the October 3, 2003 reporting date, and that the adjustments will reduce inventory balances and increase cost of goods sold by an amount in the range of $1.5 million to $2.1 million. Precision has not yet completed its review, and no conclusive findings have yet been made available to corporate management. Inventory adjustments in this range of amounts would raise questions about underlying systems and controls, could have an adverse impact on Precision bank borrowing arrangements, and could adversely impact Precision's ability to maintain liquidity. The review of the inventory and the reconciliation to recorded accounts, and concerns about liquidity and internal controls, requires additional time for the determination of the effect these issues may have on the period ended October 3, 2003. Elamex will reschedule its reporting date as soon as the review of third quarter results is complete. The revised date and time of Elamex's third quarter 2003 press release and conference call will be addressed in a forthcoming announcement. About Elamex Elamex 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. This press release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, risks associated with possible inventory adjustments. Information contained herein should be read in conjunction with the Company's periodic filings with the Securities and Exchange Commission. For further information, please contact Sam Henry, Chief Financial Officer of Elamex S.A. de C.V., +1-915-298-3071, ; or Kristen McNally, General Information, +1-310-407-6548, , or Brandi Piacente, Investor Information, +1-415-248-3430, , both of Financial Relations Board. DATASOURCE: Elamex S.A. de C.V. CONTACT: Sam Henry, Chief Financial Officer of Elamex S.A. de C.V., +1-915-298-3071, ; or Kristen McNally, General Information, +1-310-407-6548, , or Brandi Piacente, Investor Information, +1-415-248-3430, , both of Financial Relations Board

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