SOURCE: Elgrande International, Inc.

May 17, 2005 11:13 ET

Elgrande Converts $400k of Inventory Credit to Equity

VANCOUVER, BC -- (MARKET WIRE) -- May 17, 2005 -- Elgrande International, Inc. (OTC BB: EGDE) specializing in importing, marketing and distributing European-designed quality products, announced that Walther-Glas GmbH & Co. KG, a major supplier to the Company, has converted $400,000 of inventory credit into restricted common stock.

Walther-Glas GmbH & Co. KG, of Bad Driburg, Germany, one of the Company's principle suppliers, has converted $400,000 of inventory credit into restricted common stock at a price of $0.07 per share. The $400,000 was previously carried by Elgrande as debt payable. As part of this transaction, Walther-Glas has additionally been issued a warrant to purchase $200,000 of restricted shares at $0.10 per share valid for three years from the date of the issuance of the conversion shares. Elgrande will undertake to file a registration statement within six months of the issuance of the conversion shares.

Michael Holloran, President and CEO, commented, "In August 2003, we announced a program through which Walther-Glas would provide substantial inventory support convertible into equity. This conversion is a final step in the program, and is a milestone in our relationship. Walther-Glas is now a significant investor in addition to being a key partner. We are pleased that Walther-Glas is continuing to demonstrate their strong support for our relationship and activities. In addition to considerably strengthening our balance sheet, thus facilitating our ability to raise capital, the conversion is a strong vote of confidence in our future."

About Walther-Glas

Founded in 1865, family owned throughout its history, Walther-Glas GmbH & Co. KG is one of Germany's oldest and largest producers of high quality pressed glass gift and tableware items. The bulk of products produced by Walther-Glas are destined for export markets in over 100 countries. Situated in Bad Driburg, Germany, the company operates two state-of-the-art melting furnaces and parallel production lines with a total capacity of up to 60 tons per day. The facility utilizes the latest energy efficient technology, process control systems and robotics to melt, press, fire-polish, anneal, finish and package its diverse range of quality products. The company is totally self-contained with in-house design, tooling, production, finishing, warehousing, shipping, marketing, and product and technical support capabilities.

About Elgrande International

Elgrande International ( specializes in sourcing, importing, marketing and distributing unique European-designed quality products in the medium to high-end tabletop market. Their products are exclusively produced for the North American home décor, giftware and artware sectors. The Company has a North American sales and distribution infrastructure that currently services approximately 650 customers with over 1,100 retail locations that include independent retailers and national key accounts. Management has structured a national network of 12 major giftware representatives with showrooms in the principal US markets, supported by 128 professional sales representatives. Elgrande was the winner of the 2003 CGTA "Best New Giftware" award (

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Safe Harbor Provision

This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements, including "In addition to considerably strengthening our balance sheet, thus facilitating our ability to raise capital, the conversion is a strong vote of confidence in our future" are based on the Company's current expectations of future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Risk factors include, lack of inventory financing, foreign currency swings, availability of product and other risk factors as outlined in the Company's SEC filings.

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