Friday July 16, 1:22 am Eastern Time

Company Press Release

SOURCE: Elamex S.A. de C.V.

Elamex Acquires U.S.-Based Metal Stamping Operation

EL PASO,  Texas,  July 16 /PRNewswire/ -- Elamex S.A. de C.V.  (Nasdaq:  ELAMF -
news) announced  today that it has signed a definitive  agreement to acquire 100
percent  of the  stock  of  Precision  Tool,  Die &  Machine  Company,  Inc.,  a
Louisville, Kentucky metal stamping company, for $20.3 million in cash. The deal
has been  approved  by the  Boards of  Directors  of both  companies  and by the
shareholders of Precision. The deal is slated to close later this month, pending
customary regulatory approvals.

"The Precision  acquisition is beneficial in several ways. First, it expands our
manufacturing  presence  into the  United  States  in an  industry  where  local
presence is a logistical necessity.  Second, it expands our customer base in the
automotive,  appliance and  industrial  controls  industry,  which may result in
complementary expanded customer relationships for both of our companies.  Third,
it enhances our mechanical engineering and tool making expertise. Finally, it is
a key step in our overall  strategy of  becoming a  full-spectrum  manufacturing
services  provider.  We  believe  that  strategic  vertical  integration  is  an
important element in serving a market  increasingly driven by time-to-market and
logistic  issues,  in addition to lowest unit cost,"  commented  Hector  Raynal,
Elamex's President and Chief Executive Officer.

Precision  operates two  facilities,  with a combined  square footage of 206,000
square feet in Louisville.  The  privately-held  company's  sales for the fiscal
year ended June,  1998 were $54.6 million.  The facilities are both ISO 9002 and
QS 9000 registered.  Major customers include General Electric,  Whirlpool, Trane
and Johnson Controls.

Elamex  currently  offers plastics  injection  molding,  metal stamping,  powder
coating and pad printing  services through its  Mexico-based  joint venture with
General  Electric,   known  as  Qualcore.  In  addition  to  expanding  Elamex's
geographic  manufacturing presence in the metal stamping and tool and die arena,
the  wholly-owned  Precision  subsidiary will add welding,  orbital riveting and
machining capabilities to Elamex's in-house capabilities portfolio.

Elamex  S.A.  de  C.V.  is  a  26-year-old   manufacturing   services  provider,
headquartered  in  Mexico.  Its  17  Mexico-based   facilities  provide  turnkey
electronic,  electromechanical and mechanical contract manufacturing; repair and
refurbishment;  and  shelter  services  to a variety  of  industries  including:
telecommunications,  medical, industrial control, automotive,  avionics, defense
and consumer products.

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  profitability,  the  ability  of the  Company to
continue to increase  sales to existing  customers  and to new customers and the
effects of  competitive  and  general  economic  conditions  and the  ability of
Elamex's own customers to meet their expectations and projections.

SOURCE: Elamex S.A. de C.V.

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