Brokerages Seek Settlement with Nutek Shareholders in Federal Lawsuit.

LAS VEGAS, Jun 11, 2003 (BUSINESS WIRE) -- Nutek Inc. (NUTK) today announced that several brokerages in the federal lawsuit for the failed delivery of certificates to Nutek shareholders have expressed their intent to settle this matter.

Legal representation for E-Trade, Schwab and Fidelity has expressed their intent to settle the failed deliveries. Plaintiffs intend to move forward against Ameritrade, another defendant in the lawsuit, and seek an injunction from the court to force Ameritrade to immediately deliver Nutek certificates to its respective customer/plaintiffs.

Commenting on the situation, Murray Conradie, president & CEO, said, "We are very encouraged that three of the brokerages named in the Federal lawsuit are expressing an interest to settle this matter and fulfill the obligations to shareholders. As a condition to settlement, shareholders named in the lawsuit, and any additional Nutek shareholders who have accounts with these brokerages may now obtain their certificates free of charge if they request them within the next fourteen days. Requests for certificates are to be sent to their brokerages with a copy being provided to Nutek.

Shareholders are requested to provide Nutek, the shareholder name, brokerage, account number, number of shares requested, along with the date requested, by fax at 702/262-0033 or e-mail at certificates@nutk.com or online at Nutek's website.

Conradie went on to say, "We are, however, very concerned with the lack of response from Ameritrade to the Federal lawsuit considering the fact that the failed deliveries at this brokerage currently stands at 1,512,663 shares. Along with the amended complaint against Ameritrade evidencing the increase in failed deliveries, the company will be expanding the litigation to include the additional brokerages listed."

The 5,358,543 shares that are represented by failed deliveries currently stand as follows:

In conclusion, Conradie commented, "We urge all Nutek shareholders who trade with these brokerages to take advantage of this opportunity 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."

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.