Quantex Capital Corporation

Quantex Capital Corporation

January 19, 2007 14:24 ET

Quantex Capital Corporation: Samlex America Sign US Distribution

Agreement with Large Chinese Power Supply Manufacturer, Enters Into Settlement Agreement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2007) - Quantex Capital Corporation (PINK SHEETS:QCPC) announced today that the company's subsidiary, Samlex America, has entered into a distribution agreement with Hengfu Corporation, respected power supply manufacturer which has been selling its products around the globe for more than 15 years.

"The agreement provides Samlex with the right to be the main distributor for Hengfu in North America and provides the company with an opportunity to bring high quality power supply products to the one of the largest markets in the world," stated Mr. Evan Baergen, President of Quantex Capital Corporation.

"With a well-funded sales and marketing program supporting the Hengfu distribution arrangement, Samlex has the opportunity to increase its existing Switching Power Supply business from roughly $700,000 to more than $3 million within 36 months," stated Samlex America President, Jonathon Dugdale.

Hengfu's products range from 5W to 1,000W AC/DC, DC/DC standard, modified and custom-design switching power supplies, including more than 2,000 models. About 40 product series have acquired UL & CE approval and more are underway. Presently, Hengfu is the only Chinese manufacturer with such a comprehensive range of safety approvals.

Hengfu uses a range of equipment, including wave soldering machines ATE, ICT, EMC and an environmental testing system, all of which provide increased production capacity and high efficiency. Each and every unit produced by Hengfu is given a 100% burn-in test before delivery and the annual product failure rate is below 0.2%.

Hengfu Corporation, founded in 1992, is recognized as a leading professional manufacturer of industrial switching power supplies in China. Hengfu is O9001:2000 certified by SGS and a registered member of Alibaba and Made-in-China. Hengfu is a major brand in China, known for its high quality and reliability enjoying an annual sales increase of 40% in the Asian and European markets and is ready to penetrate the North American market with Samlex America as a its main distributor.

With 15 years of experience specializing in the design and manufacture of switching power supplies, Hengfu has established long-term relationships with hundreds of customers. Hengfu's products are being exported to Europe, North America, Oceania, South East Asia, and Africa through a geographically diverse sales and distribution team. There are 12 branch offices in China and a worldwide network of distributors which provide prompt service and technical support.

The distribution agreement is for a 2-year term through June 30, 2008 and continues thereafter subject to termination upon 6 months notice by either party.

With respect to the recently filed lawsuit in the Supreme Court of British Columbia relating to a loan agreement with Hunter Consulting International Inc., the company is pleased to announce that it has reached a tentative settlement agreement and anticipates the execution of a definitive settlement agreement shortly.

About Quantex

Quantex Capital is a US publicly traded firm which specializes in the acquisition of controlling interests in solid companies operating in the power conversion and supply industry, and providing long-term management and business growth solutions to its subsidiaries. Visit www.quantex.com for more information. The company's largest holding is Samlex America, www.samlexamerica.com, a distributor of a variety of power conversion products.

On Behalf of the Board of Directors,

L. Evan Baergen, President

This press release may contain certain forward-looking information and statements concerning the company's operations, performance and financial condition. These statements are based upon a number of uncertainties and contingencies, many of which are beyond the control of the company. Actual results may differ materially from those expressed or implied by such forward-looking statements. This document is not intended to be and is not an advertisement for any securities of the company.

Contact Information