Farini Reports 1995 Year-End Results.

TORONTO--(BUSINESS WIRE)--May 17, 1996--SOLEX CAPITAL INC. (CANADIAN DEALING NETWORK:SOLX) The Farini Group today reported results for the year ended December 31, 1995.

Revenues for 1995 increased nearly eight fold to $1.08 million compared with $140,000 for 1994. The company recorded a loss of $1.32 million ($0.055 per share) in 1995, compared with a loss of $1.12 million ($0.061 per share) in 1994. The loss for 1995 can be attributed to the following factors: i) significantly increased direct and indirect overhead costs associated with maintaining two plant operations since it acquired the Borden-Catelli fresh pasta division in August 1995; ii) costs incurred due to plant improvements necessary to receive regulatory government approval to enable commencement of shipments to the United States, and iii) as a result of a change in accounting policy, expenses for the amortization of capital assets and goodwill, deferred development costs and consulting fees, and trademarks increased from $71,746 in 1994 to $423,864 in 1995.

"Subsequent to year end, we completed the consolidation of the two plants and administrative operations to the Borden-Catelli facility in Woodbridge, Ontario," said Angelo Panza, President and Chief Executive Officer. "In addition, as part of our planned cost-reduction program, we have upgraded our information and administrative systems to further improve our productivity. We anticipate that these and other measures will substantially reduce overhead costs and positively impact profitability during 1996," Mr. Panza added.

"Because of the delays we experienced as a result of a longer than anticipated government regulatory approval process," Mr. Panza noted, "we began shipments of the US$5.6 million order to the United States in April 1996, a few months behind schedule. Accordingly, these shipments will only be reflected beginning in the second-quarter results.

"Overall, we are very pleased with the progress achieved to date. Having raised some $1.3 million during the year; acquired the Borden-Catelli fresh pasta plant; and implemented a stringent cost-reduction program, Farini has laid the foundation upon which to build a solid business. We can now focus on expanding our reach in our existing markets and aggressively pursuing the U.S. market. Consequently, we are very optimistic about the future. With this solid foundation, and having already increased our manufacturing volumes substantially, Farini is poised for rapid growth, and significantly increased revenues and improved earnings in fiscal 1996."

Solex Capital Inc. (operating as, and to be renamed The Farini Group) is a fully integrated manufacturer of fresh pastas, sauces and entrees for wholesale and retail outlets, as well as restaurants and institutions. The company also designs, markets and sells a unique, proprietary automatic pasta cooker for use by restaurants, fast-food outlets, and institutions. The Farini Group is headquartered in Woodbridge, Ontario. The company trades on the Canadian Dealing Network (symbol SOLX).

CONTACT: The Farini Group

Angelo Panza, 905/851-5553

or

The Farini Group

Graham Millington, 905/851-5553

or

Wertheim + Company

Anne Lachance, 416/594-1600, x 225