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SERVTEX INTERNATIONAL SHIPS FIRST PROPRIETARY PRODUCTS TO WAL-MART AND BEVERLY ENTERPRISES; SEES FISCAL 1993 SOURCING BUSINESS EXPANDING

SERVTEX INTERNATIONAL SHIPS FIRST PROPRIETARY PRODUCTS TO WAL-MART AND BEVERLY ENTERPRISES; SEES FISCAL 1993 SOURCING BUSINESS EXPANDING
 NEW YORK, April 14 /PRNewswire/ -- Servtex International Inc. (NASDAQ: SVTX), which began its corporate life in 1987 as a sourcing agent for offshore knitwear has shipped its first proprietary products.
 President Jonathan Rosenberg said that the company, which raised $4.8 million in its initial public offering in January, has made initial shipment of its new Classic Comfort(TM) reusable cotton baby diapers to Wal-Mart, largest US retailer, and its reusable cotton adult diapers to Beverly Enterprises, a leading nursing home chain.
 Rosenberg said that slower shipments by foreign sources and additional start up costs of the company's new proprietary lines penalized third quarter and nine month results.
 For the third quarter ended Feb. 29, 1992, Servtex today reported revenues were $154,702 compared with $116,482 in the 1991 period, while net loss of $250,666, or six cents per share, compared with net income of $9,480 or less than one cent per share in the 1991 period.
 There were 4,083,732 weighted average shares outstanding in the 1992 period versus 3,080,000 in the 1991 period.
 For the nine months ended Feb. 29, 1992, the company reported revenues of $320,607 and a net loss of $580,313 or 15 cents per share, compared with revenues of $372,071 and net income of $19,005 or one cent per share for the 1991 period.
 There were 3,748,178 weighted average shares outstanding in the 1992 period versus 3,080,000 in the 1991 period.
 Rosenberg noted that reported revenues from sourcing activities reflect only the company's commissions. If Servtex took title to the goods shipped, its reported sales would be an estimated $5.1 million in the current fiscal year ending May 31, 1992.
 "Based on present bookings," he added, "for the fiscal year beginning June 1 we expect sales by our foreign manufacturing sources to triple to about $16.5 million. What's more, Servtex expects to generate a higher average commission on the increased sales. As a result, the company's revenues from sourcing activities could increase several fold in fiscal 1993."
 Servtex International Inc. earns commissions by bringing together foreign cotton knitwear manufacturers and their US customers; sells its own proprietary line of Classic Comfort(TM) cotton baby and adult diapers, and is currently readying for market its Kool-Core(TM), a patent pending cooling device designed to cool the overheated body in sporting activities and the workplace.
 -0- 4/14/92
 /CONTACT: Jonathan Rosenberg, president of Servtex International, 212-564-2700, or Warren Cavior of Cavior Organization, 212-687-6070, for Servtex International/
 (SVTX) CO: Servtex International Inc. ST: New York IN: REA SU:


SM-OS -- NY035 -- 8267 04/14/92 12:06 EDT
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Publication:PR Newswire
Date:Apr 14, 1992
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