WLC Wellco Enterprises

Wellco Enterprises, Inc., (AMEX:WLC) today announced that the Department of Defense has exercised the second option to supply the U.S. military with the development of a Modular Boot System. In December 2005, Wellco was one of two contract awardees for the development of the US Army Modular Boot System. Presently, the Department of Defense buys four different boot styles to meet the varied climatic conditions encountered by military personnel. The contract's goal is to develop a functional boot system to provide comfort in a temperature range of -60(degree)F to 120(degree)F. If successful, the new Modular Boot System would replace many of the current boot styles. The Department of Defense has exercised the second option under this contract and issued an order for 450 pairs of the Modular Boot System for expanded testing. In March 2006, Wellco shipped 580 pairs under the first option and testing was favorable. If the Wellco Modular Boot System is successful through all phases of development and testing, the contract provides for Wellco to manufacture 160,000 pairs of this boot for issuance to military personnel. In addition, under an existing contract to supply Hot Weather boots to the Department of Defense, Wellco received a delivery order in the amount of $1,443,000. Work will be performed at Wellco's plant in Waynesville, North Carolina and it's plant Moka Shoe Corporation in Aguadilla, Puerto Rico. Lee Ferguson, President and Chief Executive Officer stated, "We are very pleased to have received this next option for the Modular Boot System and new delivery order for Hot Weather boots. We stand proud in being able to support the needs of our troops at home and abroad." Wellco Enterprises, Inc. specializes in the manufacture and development of military footwear and derives the majority of its revenues from the sale of military and tactical boots. Wellco is committed to providing high performance footwear and excellent service to the U.S. military and all its customers. CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION Statements throughout this report that are not historical facts are forward-looking statements. These statements are based on current expectations and beliefs, and involve numerous risks and uncertainties. Many factors could affect the Company's actual results, causing results to differ materially from those expressed in any such forward-looking information. These factors include, but are not limited to, the receipt of contracts from the U. S. government 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 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 obligation to update any forward-looking statements.