Elamex Leases Sixth of Seven Manufacturing Facilities in Mexico

EL PASO, Texas, July 31 -- Elamex S.A. de C.V. , a diversified manufacturing services company with food services, plastics and metals operations and real estate holdings in Mexico and the United States, today announced that it has leased its 80,000 square foot manufacturing facility located in Nuevo Laredo, Tamaulipas, Mexico. The five-year lease agreement, which takes effect September 1, 2003, will generate annual rental income of approximately $300,000 for Elamex.

Elamex owns and operates a total of seven facilities in Mexico totaling 400,000 square feet of manufacturing space, all of which are owned outright. The Company now has lease agreements on all but one of those facilities, representing approximately $1.6 million in potential annual rental income. Elamex is actively seeking to lease or sell the remaining facility located in Chihuahua City, Chihuahua.

"Approximately $1.6 million in rental income net of minimal cash expenses that we are generating on our facilities in Mexico directly supports our strategic focus on our higher return businesses," said Richard P. Spencer, president and chief executive officer of Elamex. "We are emphasizing the organic growth and distribution expansion opportunities of our core candy and nut business, Franklin Connections, but also intend to apply resources for strategic capital investment in Precision Tool, Die and Machine Company's metal stamping operation.

"We are pleased with our success in leasing three of our buildings in Mexico since the beginning of the year and now look forward to finding a suitable lessee or buyer for the remaining Chihuahua facility," Spencer added.

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 metal and plastic parts for the appliance and automotive industries, and food items related to its candy manufacturing and nut packaging operations. 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.

This press release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, risks associated with the Company's future growth, and the ability of the Company to continue leasing its manufacturing facilities in Mexico that are currently under lease agreement and to lease or sell its remaining facility. Information contained herein should be read in conjunction with the Company's Form 10-Q filing with the Securities and Exchange Commission for the period ended April 4, 2003.

For further information please contact: Thomas Benson, Chief Financial Officer of Elamex S.A. de C.V., +1-915-877-1111, tomb@elamex.com; or Kristen McNally, General Information, +1-310-407-6548, kmcnally@webershandwick.com, or Brandi Piacente, Investor Information, +1-415-248-3430, bpiacente@webershandwick.com, both of FRB | WEBER Shandwick, for Elamex S.A. de C.V.