Nutek Shareholder Update Concerning Failed Certificate Delivery By Brokerages.

LAS VEGAS, Apr 17, 2003 (BUSINESS WIRE) -- Approaching 6 Million Shares; CEO Seeks Integrity of Outstanding Share Count

Nutek, Inc. (NUTK) today announced that the failed delivery of certificates by brokerage firms to Nutek shareholders has climbed to 5,855,506 shares at latest count, although reports are still coming in.

Commenting on the situation, Murray Conradie, president & CEO, said, "We are growing increasingly alarmed that shareholders attempting to authenticate the shares purchased in Nutek by requesting physical delivery of the shares cannot receive these shares from their brokerages."

Since several shareholders and the company filed a Federal lawsuit against brokerages for failed delivery, additional shareholders have contacted the company complaining they, too, cannot get their certificates. This now brings the number to 33 shareholders who have contacted the company complaining of the inability in obtaining share certificates since Nutek requested shareholders do this last December 2nd. The total number of shares represented by these failed deliveries now stands at 5,855,506.

Conradie continued, "This growing number of shares is becoming increasingly curious as we now have almost 15.5% of the approximately 38 million shares available in nominee or 'street name' as of April 5, 2003, represented by these 33 shareholders, yet our records indicate we have in excess of 2,500 shareholders. This would indicate that the remaining shares in 'street name' would only average 12,858 shares per shareholder. This average shareholding just does not make sense since we have numerous large positions held by some shareholders, decreasing this average shareholding even further."

The 5,855,506 shares that are represented by these 33 shareholders were purchased through E*TRADE Group Inc. (ET), Ameritrade Holding Corp. (AMTD), Fidelity, Scottrade, Maxim Group, Harris Direct, Charles Schwab (SCH), Olde/H&R Block (HRB), R.J. Thompson Securities owned by TD Waterhouse Group Inc. (TWE), Securities America and Quick & Riley.

 

In conclusion, Conradie commented, "Due to the increasing number of failed deliveries, the problem is becoming increasingly more serious, and we urge shareholders to verify that the shares they have purchased in the open market are authenticated, and truly represent bona fide, legal shares. The procedure to do this is to request physical delivery of the shares purchased. Shareholders who have requested physical delivery of shares, but are being denied delivery, are to contact the company immediately by fax at 702/262-0033 or e-mail at certificates@nutk.com."

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995  

Certain statements contained in this press release are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to the Company that is based on the beliefs of the management of the Company, as well as assumptions made by and information currently available to the management of the Company. When used in this press release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events, and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. The Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.