WLC Wellco Enterprises

Wellco Enterprises, Inc. (AMEX:WLC) today reported that the U. S. Department of Defense has announced that Wellco received a $17.4 million contract for boots for the Army and Air Force. This announcement does not relate to a new contract award. It relates to an option exercise under an existing contract. In addition, this is an indefinite quantity contract, and the amount announced by the Department of Defense is the maximum that can be ordered under the option. The Department of Defense announcement is for a one-year option award to Wellco under an existing contract. The subject contract, which was awarded two years ago, consists of a one-year base period and two one-year option periods. The decision to exercise any option is the unilateral decision of the U. S. Department of Defense. The option exercise is for a minimum of 41,000 pairs ($2.8 million) and a maximum of 256,000 pairs ($17.4 million). Simultaneous with the option exercise, Wellco received an order for the minimum 41,000 pairs. Any orders beyond this minimum will be issued at the unilateral decision of the Department of Defense. This option exercise is the second and final option exercise under this contract. Except for historical information, this Release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, the receipt of contracts from the U. S. government and others, and the performance thereunder, the ability to control costs under fixed price contracts, the cancellation of contracts, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings, including Form 10-K for the year ended July 3, 2004 and Form 10-Q for the quarterly period ended April 2, 2005. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management. Actual results may differ materially from management expectations. The Company assumes no obligations to update any forward-looking statements.