WLC Wellco Enterprises

Wellco Enterprises, Inc. (AMEX: WLC) announces that William M. Cousins, Jr., resigned as a member of the Board of Directors and Audit Committee of the Company on May 11, 2006. Mr. Cousins has been a Director of the Company since November 1990. Mr. Cousins has been a member of the Audit Committee since November 1990 and served as Chairman of the Audit Committee since November 1999. Mr. Cousins' decision to resign was based on personal reasons. The Company gave notice to the AMEX on May 15, 2006 that it is not in compliance with Section 121B(2)(a) of the AMEX Company Guide requiring that the Company have an Audit Committee of three members. On May 11, 2006 William M. Cousins, Jr., resigned from the office of a member of the Board of Directors and the Audit Committee of the Company. The Company does not have a member of the Board of Directors, other than the two remaining members of the Audit Committee, who is independent as defined in Section 121A of the AMEX Company Guide. The Company's plan of action is to seek the election of an independent member of the Board of Directors who satisfies the independence standards specified in Section 121A of the AMEX Company Guide and Rule 10A-3 under the Securities Exchange Act at the Company's next annual shareholder's meeting (November, 2006), if the vacancy is not sooner filed by the Board of Directors, and appoint the additional independent member of the Board of Directors to the Audit Committee to serve with the two remaining members (the "Plan"). Until the appointment of the additional independent member of the Board of Directors to the Audit Committee, the Audit Committee of the Company will consist of two members. The Company gave notice to the AMEX on May 15, 2006 of the Plan and requested a determination of its reasonableness from the AMEX. CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION Statements throughout this report that are not historical facts are forward-looking statements. These statements are based on current expectations and beliefs, and involve numerous risks and uncertainties. Many factors could affect the Company's actual results, causing results to differ materially from those expressed in any such forward-looking information. These factors include, but are not limited to, the receipt of contracts from the U. S. government 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 July 2, 2005. 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 obligation to update any forward-looking statements.