Elamex's Reports 48 Percent Gain in Second Quarter Revenues

26 July 2000

    EL PASO, Texas - Elamex S.A. de C.V. announced today its results for the 
quarter ended June 30, 2000.  Sales increased 48% to $47.6 million from $32.2 
million in the second quarter of the previous year.  Net income for the quarter 
increased to $19.9 million, as compared with $801 thousand for the second 
quarter of the previous year.  Income per share for the quarter was $2.90 as 
compared with $0.12 for the same quarter of the previous year. Weighted average 
shares outstanding were 6,866,100, for each period.

    For the six months ended June 30, 2000, sales increased 55% to $99 million
from $63.7 million in the same period of the prior year. Net income for the
six-month period was $19.6 million, as compared with $1.3 million for the same
period of the previous year. Income per share was $2.85, as compared with
$0.18 for the same period of the prior year. Weighted average shares
outstanding were 6,866,100, for each period.

    The increase in sales during the first quarter was primarily attributable
to the Company's Louisville, Ky. metal stamping operation, which was acquired
in the second half of the prior year and to growth in sales in our plastics
and metal stamping joint venture.

    The decrease in Operating Results during the second quarter of this year
from the same period last year was:  the result of one time severance,
personnel and management costs directly resulting from the Electronics
Manufacturing Services (EMS) sale; peso denominated salary increases with no
offsetting effect in the exchange rate; and the impact of the currently lower
margins in our metal stamping business.  The increases in operating expenses
were partially offset by a decrease in R & D Expenses related to the Optimag
operation sold in October of last year.

    The increase in net income of $19.1 million from the $801 thousand
recorded in the second quarter of the prior year included a gain of
$20.5 million attributable to the previously announced divestiture of the
Company's EMS, an increase in interest expense resulting primarily from the
financial costs of funding equipment purchases in our Kentucky and joint
venture operations, and a refund of state payroll taxes.

    "One of the challenges in the EMS divestiture was to rapidly close the
transaction, in spite of regulatory processes in two countries.  This process
was successfully completed and we have now directed our focus on growing our
remaining businesses both through direct investments and acquisitions," said
Hector Raynal, Elamex's president and chief executive officer.

    The Company's metal stamping operations continued to experience strong
growth during the quarter.  Two new 1100-ton presses have been installed in
the last six months and are now operational.  We have also completed the
installation and qualification of a new powder paint line and our Kentucky
operation's future outlook remains very positive.  The Company's contract
assembly and shelter services operations added one telecommunications customer
and began production ramps for three customers won in the previous quarter and
we have begun construction on a specialized facility for a new customer that
will begin operations in the first quarter of next year.

    Work continues to progress on the expansion of the Company's plastics and
metal stamping joint venture with General Electric. The new Celaya, Mexico
facility is currently being fitted up and equipment is being installed. The
facility is scheduled to begin production late in the third quarter. The seed
customer for this operation is a large appliance manufacturer.

    Elamex S.A. de C.V. is a 27-year-old manufacturing services provider,
headquartered in Mexico. Its 2 U.S. based and 15 Mexico-based facilities
provide contract assembly; shelter services and custom metal stamped and
plastics components to a variety of industries including: telecommunications,
medical, appliance, automotive, avionics, defense and consumer.

                    ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
                    Consolidated Statements of Operations
          (In Thousands of U. S. Dollars, except per share amounts)
                                 (Unaudited)


                               13 Weeks ended            26 Weeks ended
                             June 30,    July 02,     June 30,     July 02,
                             2000          1999       2000         1999

    Net sales             $ 47,622       $32,195     $ 99,048      $ 63,696

    Cost of sales           44,801        28,735       93,478        57,318

      Gross Profit           2,821         3,460        5,570         6,378


    Operating expenses:
     General and
      administrative         4,254         1,954        6,923         3,874

     Selling                   467           430          992           920

     Research and development   --           454           --         1,003

        Total operating
          expenses           4,721         2,838         7,915        5,797

    Operating (loss)
     income                 (1,900)          622        (2,345)         581


    Other income (expense):
     Interest income            451           215          563           492
     Interest expense          (705)         (129)      (1,663)         (210)
     Other, net                 442           308          981           518

    Gain on sale of
     assets and liabilities
     of EMS Operations      20,536             --        20,536           --
        Total other
         income (expense)   20,724            394        20,417          800

    Income before income
     taxes and
     minority interest      18,824         1,016       18,072         1,381

    Income tax (benefit)
     provision              (1,035)          252       (1,255)          526

    Income before minority
     interest               19,859           764       19,327           855

    Minority interest
     in loss of subsidiaries    35            37          228           401

    Net income            $ 19,894          $801      $19,555        $1,256

    Basic and diluted
     income per common share $2.90         $0.12        $2.85         $0.18

    Weighted average
     shares outstanding  6,866,100     6,866,100    6,866,100     6,866,100


                    ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
                    Consolidated Condensed Balance Sheets
                       (In Thousands of U. S. Dollars)
                                 (Unaudited)

                                                   June 30,      December 31,
                                                     2000            1999
    Assets
    Current assets                                  $ 84,177        $63,884
    Property, plant and equipment, net                44,913         52,875
    Other assets, net                                 10,189         10,465
                                                    $139,279       $127,224

    Liabilities and Stockholders' Equity
    Current liabilities                             $ 34,428        $35,004
    Long-term debt and liabilities                    20,418         27,115
      Total liabilities                               54,846         62,119

    Minority interest                                  1,450          1,677
     Stockholders' equity                             82,983         63,428
                                                    $139,279       $127,224