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

Elamex Receives Nasdaq Notice Relating to Late Filing of 10-Q Report With SEC EL PASO, Texas, Nov. 28 /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 announced that it has received a notice from Nasdaq Listing Qualifications relating to the late filing of the Company's Form 10-Q report with the Securities and Exchange Commission (SEC) for the third quarter ended October 3, 2003. The Company was notified by Nasdaq that it had not received the Company's Form 10-Q for the period ended October 3, 2003 as required by Marketplace Rule 4310 (c)(14) and that its securities will be delisted from The Nasdaq Stock Market at the opening of business on December 5, 2003 unless the Company requests a hearing in accordance with the Marketplace Rule 4800 Series. The Company will be requesting a hearing that will stay the delisting of the Company's securities pending the Panel's decision. The Company currently anticipates that a hearing will be held within three weeks from the date of the Company's request for such hearing. Elamex filed a Form 12b-25 report ("Notification of Late Filing") with the SEC on November 18, 2003 which noted that the Company 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"). Elamex was subsequently unable to file its 10-Q report within the five-day extension sought in conjunction with the Form 12b-25 filing. "We intend to comply fully with the Nasdaq's requirements and will request a hearing to present our case," said Richard P. Spencer, Chief Executive Officer of Elamex. "Precision has not yet completed its comprehensive review of the inventory and the reconciliation to recorded accounts which may reduce inventory balances and increase cost of goods sold by an amount in the range of $1.5 million to $2.1 million for the third quarter of 2003. Inventory adjustments in this range 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. Therefore, we are taking additional time to conduct an exhaustive review before presenting our conclusive findings. We are hopeful that we will receive a favorable outcome from the Nasdaq Listing Qualifications panel with regard to the continued listing of Elamex shares on the Nasdaq National Market." As a result of Elamex's SEC filing delinquency, Nasdaq will append the fifth character "E" to Elamex's trading symbol. Accordingly, the trading symbol for the Company's securities will be changed from ELAM to ELAME at the opening of business on December 1, 2003. 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. 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. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially. Factors that could cause actual results to differ include, but are not limited to, the following: * As noted above, the Company intends to request a hearing with The NASDAQ Stock Market, Inc. to ask that its common stock continue to be listed for trading until the filing of the Company's Form 10-Q for the quarter ended October 3, 2003. The Company will file the Form 10-Q as soon as is reasonably practicable. The Company is hopeful that the request to allow the Company's common stock to continue to be listed will be granted. However, there is no assurance that the Company will be successful in this regard. Accordingly, the delisting of our common stock could adversely affect the price of a share of common stock and the ability of our stockholders to sell their shares of our common stock. * As a result of the Company's failure to file its Form 10-Q in a timely manner, the Company may be subject to inquiry or investigation by governmental authorities, including the Securities and Exchange Commission. In the event that the Company becomes subject to such an inquiry or investigation, the Company will fully cooperate with such inquiry or investigation. There is a risk that such an inquiry or investigation could result in substantial costs and divert management attention and resources from our business, which could adversely affect our business. * In the past, private securities class action litigation has been brought against companies after events occurred that caused volatility in market prices. Due to the recent announcement of the failure to timely file the Form 10-Q, there is a risk that private securities litigation may be brought against the Company. There is a risk that such litigation could result in substantial costs and divert management attention and resources from our business, which could adversely affect our business. * The Company's stock price may become volatile, in part, due to the announcement of its failure to timely file its Form 10-Q. For further information please contact: Sam Henry, Chief Financial Officer of Elamex, +1-915-298-3071, ; or General Information, Kristen McNally, +1-310-407-6548, , or Investor Information, Brandi Piacente, +1-415-248-3430, , both of Financial Relations Board, for Elamex. DATASOURCE: Elamex S.A. de C.V. CONTACT: Sam Henry, Chief Financial Officer of Elamex, +1-915-298-3071, ; or General Information, Kristen McNally, +1-310-407-6548, , or Investor Information, Brandi Piacente, +1-415-248-3430, , both of Financial Relations Board, for Elamex

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