SOURCE: Jeantex Group, Inc.

March 20, 2006 09:05 ET

Jeantex Group Provides Update to Investment Community Including $10 Million in Institutional Funding, Latest Alliance With Founder of "VON DUTCH" Clothing Brand, Product Offerings, and Growth


LOS ANGELES, CA -- (MARKET WIRE) -- March 20, 2006 -- Jeantex Group, Inc. (OTC BB: JNTX) today announced an update for the investment community regarding recent important corporate developments and growth strategy.

Jeantex Group, Inc. (, through its wholly owned subsidiary Jeantex, Inc., a Los Angeles-based company, engages in the design, development, manufacturing, and marketing of consumer products for the apparel markets worldwide. The Company acquired 100% of Jeantex, Inc., a California corporation, in June 2005.

The Company manufactures and markets new lines of uniquely designed premium jeans, T-Shirts, and accessories under the "Bone People" ( trademark and is a majority owner of Yves Castaldi Corp. (, which designs high-end fashion collections under the "Just Yves," "I Generation," "Instinct Yves," and "Yves Castaldi Raw Denim" brands. The Company acquired 51% of Yves Castaldi Corp. in December 2005.

Yves Castaldi's "Just Yves" luxury fashion brand for women and "I Generation," a premium unisex brand offering centered around denim, introduced a fresh, new collection of bottoms and tops, including uniquely designed black and pinstripe denim. The Company's inventive product offering attracted a host of new orders from Japanese and German distributors as well as product re-orders from existing American and European distributors following the New York Coterie and the Las Vegas Project and Magic Shows.

"Just Yves" is a better luxury fashion brand for the liberated woman, offering an assorted collection of pants, jackets, skirts, dresses, vests and tops made from dressier fabrications.

"I Generation" is a premium unisex denim brand offering pants, shirts, jackets, and T-shirts. Both of these brands are carried in department stores such as Nordstrom and Barney's as well as boutique stores like Fred Segal, On Sunset, Oh So Couture!, and Work in Progress.

Recently, the Company has partnered with Michael Cassel, founder of the "VON DUTCH" clothing brand, to launch a new line under the name "LSD" (Leather Silver Denim). This premium line is made of the finest Japanese denim, sterling silver buttons and innovative design. The brand has already generated much interest from celebrities and fashion experts alike. The Company expects to generate approximately $2 million in additional revenues from this new line.

The Company has designed a four-pronged business model that can potentially yield long term rewards with relatively diversified revenue streams, which include:

1. Private Label Manufacturing -- With over 20 years of design and manufacturing experience, Jeantex, Inc. continues to be a leader in providing full packaging services to prominent private label brands to include Karen Kane, Limited Express, Country Girl (licensed by John Deere) and Blue Cult. Jeantex is able to produce over 40,000 pieces on a monthly basis. This sector of the business produces healthy profit margins of 35%+.

2. Branded Fashion -- At the forefront of fashion, Jeantex carries prominent brands under the Yves Castaldi Corporation and the Bone People trademark, including the new LSD line with Michael Cassel and others to be added in the near future. This sector of the business produces healthy profit margins of 50%+ and is forecasted to represent 65% of gross revenues in 2006.

3. Strategic acquisitions -- The Company has investigated and begun negotiating to acquire several target companies in the US and abroad to increase both critical mass and profitability.

4. Auxiliary Denim Services: including sewing, embroidery, washing, baking, tucking, and etc.

Jeantex Group believes what makes it unique is a combination of some salient factors that come from the Company's strategy and core competencies:

--  A solid manufacturing platform, with over 20 years experience;
--  Branded fashions with over three decades of experience and
    international recognition;
--  Auxiliary services can be a highly stable profit center;
--  Prudent acquisitions of established targets in the US and Asia,
    especially Vietnam, that will quickly increase critical mass and
--  The Company has recently closed a $10 Million funding from an
    institutional investor to help execute its business plan.
In the next three to six months, investors should expect to see an increase of private label capacity and branded business, new strategic alliance, expansion of auxiliary denim services in the US, and selective acquisitions in both private label operations and branded business.

Emulating the success story of True Religion Apparel, Inc., which also became public through a reverse merger with an OTCBB company in June 2003, the Company believes it will be able to qualify for listing on NASDAQ Small Cap or a higher exchange in twelve to eighteen months, if not sooner.

For more information, please visit our websites at,, and

SAFE HAROBOR: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

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