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Puroflow Inc. to Retire Shares and Reduce Dilution

18 February 2000

Puroflow Inc. to Retire Shares and Reduce Dilution

    VAN NUYS, Calif.--Feb. 17, 2000--Puroflow Inc. (OTCBB:PURO), today announced a plan to retire approximately 1 million shares of its common stock.
    The plan, unanimously agreed to by the newly elected (October 1999) board of directors, would retire the stock in return for cancellation of notes received by the company from certain key employees and board members.
    On Aug. 24, 1998, the company issued an 8-K report stating that the board of directors had authorized issuance of 1 million shares of common stock for sale to directors, officers and employees for 75 cents per share with terms of 20 percent cash plus interest-bearing notes for the balance.
    The current transaction would negate the notes and shares covered by those, thereby reducing the outstanding shares from 8,123,721 to approximately 7,123,721 shares.