SOURCE: Notch Novelty Corporation

February 13, 2006 08:45 ET

Notch Novelty Reaches Strategic Agreement With Key Vendors in China

REDLANDS, CA -- (MARKET WIRE) -- February 13, 2006 -- Notch Novelty Corporation (OTC: NHNV) announced today that it reached a strategic stocking and manufacturing agreement with a key water-color pen factory in Wenzhou, China. The agreement came as a result of several months of negotiation and planning that began in October 2005. The end result will trim up to three weeks of delivery time on many of Notch's best-selling items.

This agreement was forged along with several others during a purchasing and goodwill business trip through mainland China. Notch managers met with 8 current vendors, developing new product lines, discussing quality improvement issues, and establishing deeper business and personal relationships. Additionally, Notch visited many new factories, securing back-up resources and exciting product opportunities for the fall 2006 and spring 2007 buying seasons.

"Traveling through the Chinese countryside is an important part of Notch Novelty success. We visit factories and build relationships, whereas most import manufacturers use trade companies for this important and personal task. Notch finds new opportunities earlier and is able to directly connect with the people who are building our products. This trip signified to all of our vendors that the long-term relationship is important to us and a fundamental of Notch corporate philosophy," states Brett Weiss, CEO of Notch Novelty Corporation.

In regards to the newest agreement with the Wenzhou factory, Mr. Weiss adds, "Importing markers can be tricky business. As this industry is extremely seasonal, certain times of the year have extended lead times. Additionally, markers have a limited shelf life. We always aim to put the ink in Notch markers at the last possible moment. This agreement provides for advance raw component manufacturing and storage that will keep a 60-day supply of finished goods within 15 days of delivery most of the year. We also expect this move to extend marker shelf life by up to 12%. This will get Notch items out to the stores faster and reorders back to us and our distributors faster, increasing company revenue and cash flow."

About Notch Novelty Corporation (NHNV)

Notch Novelty Corporation manufactures and distributes unique sign products and novelty items to the Extreme Value industry in the United States and Canada. Notch leads this industry in sign products for resale and also develops novelty items for sale to major distributors and retailers offering goods at the $1 price point. Products are manufactured at contracted factories throughout Mainland China at the lowest possible cost and most efficient turnaround times possible. Notch items continue to benefit and grow with Disney licensed artwork through cooperative arrangements with National Design of San Diego. You can see Notch items on-line at www.notchnovelty.com or by visiting high-value retailers in your neighborhood.

Please visit the company website at www.notchnovelty.com for more information.

Safe Harbor Statement

Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.

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