NOTICE OF SPECIAL MEETING OF SHAREHOLDERS OF VELTEX CORPORATION

Dated August 25, 2004

Notice is hereby given that a Special Meeting of the Shareholders of Veltex Corporation, (a Utah Corporation hereinafter referred to sa the "the Company") has been called by the Company's Board of Directors, to be held on the 15th day of September, 2004 at 9:00 a.m. at 342 East 900 South, Salt Late City, Utah (the office of American Registrar & Transfer Co.,) for the purpose of submitting the following proposals to a vote of the Company's shareholders:

a) To reverse split the Company's outstanding shares of common stock on a 1 share for 100 shares basis.

b) To issue 18,000,000 shares of the Company's common stock for all of the outstanding shares of Velvet Textile Mills Limited.

c) To conduct any other business that may be necessary as determined by the Board of Directors.

The Board of Directors has fixed the transfer agent's close of business on August 27, 2004 as the record date in order to determine shareholders entitled to notice of and to vote at the meeting (and any adjournment thereof), and has appointed Javeed Matin as Chair to conduct the meeting.

The Company has 195,231,946 shares of $0.001 par value commom stock issued and outstanding as of the record date, each of which is entitled to vote on the matters to be voted on at the Meeting. In order for the holders of the Company's common stock top take action on said matters a quorum (under applicable Utah law, a majority) of the Company's issued shares or at least 97,615,973 shares, must be present at the meeting and a majority vote of a quorum will constitute the act of the shareholders.

However, shares owned by management of record and the shares represented by proxies appointing management exceed the number of shares required for a quorum. Accordingly, no proxies are being solicited in connection with the Meeting.

quote:

---

Originally posted by osubucks30:
I am selling ALL my shares!!! I might buy after the reverse split!!

---