Wellco Enterprises, Inc. Announces Successful Testing.

Business Editors

WAYNESVILLE, N.C.--(BUSINESS WIRE)--May 3, 2004

Wellco Enterprises, Inc. (AMEX:WLC) today reported that all Infantry Combat Boots (ICB) manufactured under contract with the Defense Supply Center Philadelphia (DSCP) have successfully passed all required testing.

Wellco previously reported that several ICB boots representing sizeable production lots had not passed one of the tests. DSCP issued a Cure Notice stating that the ICB contract may be cancelled if the Company does not supply boots that pass all the tests.

Boots that previously did not pass the test were re-tested and passed the test. In addition, all boots subsequently presented to DSCP passed all tests. DSCP is now accepting Wellco ICB boots based on Wellco's certification of its boots passing all tests, which does not require specific outside laboratory testing of each lot of boots sold to DSCP.

This testing situation has delayed Wellco's revenue recognition from the ICB contract. Since it was not completely resolved until after the end of Wellco's fiscal quarter ended April 3, 2004, significant sales of the ICB boot will not be included in revenues until the fiscal quarter ending July 3, 2004, the fourth quarter of Wellco's 2004 fiscal year.

Except for historical information, this Release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, the receipt of contracts from the U. S. government and others, and the performance thereunder, the ability to control costs under fixed price contracts, the cancellation of contracts, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings, including Form 10-K for the year ended June 28, 2003 and Form 10-Q for the quarterly period ended January 3, 2004. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management. Actual results may differ materially from management expectations. The Company assumes no obligations to update any forward-looking statements.