Press Release: Z-CoiL® Footwear Reports Record $10.8 Million in Sales

(Albuquerque, New Mexico) - Poised on the edge of a footwear revolution, Z-CoiL® Footwear continues to experience record setting growth as it sets another annual sales record.

Z-Tech, Inc., dba Z-CoiL Footwear, reports record audited net sales of $10,843,824 for the fiscal year ended June 30, 2004. This figure represents a 69.5 percent increase over the $6,398,762 in net sales reported for the previous fiscal year. Net income for the year ended June 30, 2004 was $1,027,667 compared to $1,207,797 for the prior year.

"The sales growth and net income reported this year are extremely gratifying in view of several initiatives the company undertook during the year. We've made some bold moves to create a solid foundation for future growth," says Z-Tech CEO and President Andrés Gallegos.

These initiatives included not accepting new dealers since February 2004 in an effort to create a stronger and more nationally consistent dealer network, the purchase of new facilities, the expansion of our dealer training facilities, an increase in corporate staff to support the dealer network, and the purchase and implementation of a new Enterprise Resource Planning computer software system.

"This sales growth is continuing into the new fiscal year, as we set a new monthly record in July 2004," Gallegos adds. "Our net sales for the month exceeded $1.7 million for the first time in the company's history" .

Z-Tech has 200 authorized dealers in the U.S., Canada, Mexico and Puerto Rico. Rapid dealer expansion during 2002 and 2003 required examination of Z-Tech's support network to those dealers.

"We are currently revamping our dealer service and training program to provide exemplary customer service to our existing and new dealers," Gallegos says. "This will allow us to build stronger nationwide consistency in product delivery and customer service."

Z-Tech's growth has also been evident in facility and staffing needs. During the fiscal year ended June 30, 2004 the company has increased its internal staff by 87%, bringing on top talent to strengthen the support infrastructure for dealers. To accommodate the growth in personnel, Z-Tech acquired a new 11,274 square foot office facility last November in southeast Albuquerque.

In May 2004, Z-Tech's distribution center was also moved to a 25,330 square foot facility, almost doubling its previous capacity, in order to keep up with a growing demand for product. Through June 30, 2004, more than 250,000 pairs of Z-CoiLs have been sold.

Z-CoiL footwear is specially engineered to relieve foot, leg and back pain and is gaining strong brand loyalty nationwide. "The uniqueness of the footwear, coupled with our commitment and attention to customers is what sets us apart," Gallegos says. "We have fiercely devoted customers who are creating demand through their incredible life-changing Z-CoiL experiences."