Wellco Enterprises, Inc. Clarifies Department of Defense Contract Announcement.

WAYNESVILLE, N.C. -- Wellco Enterprises, Inc. (AMEX: WLC) today reported that the U.S. Department of Defense has announced that Wellco received a $19.1 million contract for infantry combat boots for the Army and Air Force. This announcement does not relate to a new contract award.

The

Department of Defense announcement is for a one-year option award to Wellco under an existing contract. The subject contract, which was awarded last year, consists of a one-year base period and four one-year option periods. The decision to exercise any option is the unilateral decision of the U.S. Department of Defense. The option exercise is for a minimum of 51,000 pairs ($4.3 million) and a maximum of 226,000 pairs ($19.1 million).

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 April 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.