SOURCE: New Century Companies, Inc.

July 01, 2008 08:30 ET

New Century Negotiates Favorable Reset and Extension of Senior Debt

LOS ANGELES, CA--(Marketwire - July 1, 2008) - New Century Companies, Inc. (OTCBB: NCNC), a leading manufacturer and re-manufacturer of machine tools, today announced it has successfully negotiated new and favorable terms for the Company's long-term senior debt. Pursuant to the agreement, the senior lender will waive specific interest and penalties incurred from default of its original agreements. The new principal balance has been substantially reduced and the maturity extended until August 2010. Payments for the new note will commence August 1, 2008. The lender has further agreed to cancel all warrants previously issued under the original agreements in exchange for less warrants at, and above, current NCNC stock prices.

"We are very appreciative to have a senior lender who had the patience and understanding to work with our company to resolve these past issues in difficult times," stated David Duquette, the Company Chief Executive. "We look forward to working with them closely in the future and I am grateful to all parties who helped to make this possible."

About New Century Co.

New Century Companies, Inc. is one of the leading U.S.-based makers of machine tools, primarily vertical boring mills and large lathes such as vertical turning centers (VTCs). It specializes in re-manufacturing, starting with existing major castings and fitting them with state-of-the-art, computer-controlled equipment. These products generally cost 40% to 60% less to make than new ones. New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co., General Dynamics Corp., Siemens AG and Gardner Denver. New Century machines are used to manufacture jet engine components, airplane landing gear parts, power generation equipment, oil and gas production components and construction materials, to name just a few applications. New Century's production facility is in Santa Fe Springs, CA. For more information please visit New Century's Web site at

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Forward-looking statement: Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions and other risks detailed from time to time in the Company's ongoing quarterly filings, annual information form, and annual reports. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

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