EFTC to Acquire AlliedSignal's Circuit Card Assembly Operation

Business Wire, Sept 17, 1998

DENVER--(BUSINESS WIRE)--Sept. 17, 1998--EFTC Corporation (Nasdaq:EFTC), announced today that it has signed an agreement to acquire the circuit card assembly operation of the Business & General Aviation Enterprise of AlliedSignal Electronic & Avionics Systems.

The operation, which is currently located in Lawrence, Kan., will be relocated to a 41,000 square foot facility in nearby Ottawa, Kan. The operation employs approximately 130 people, all of which will be offered employment with EFTC. The transaction is expected to close this calendar year.

"This transaction is an important expansion of EFTC's strategic relationship with AlliedSignal," said Jack Calderon, EFTC's chairman and chief executive officer. "We are committed to achieving a long-term integrated business process, which will provide AlliedSignal web-based component obsolescence services, single system supply visibility, and practices which will reduce supply chain inventories."

A three-step transition process is planned for the transaction. During the first phase, EFTC will manage the operation within AlliedSignal's current infrastructure. At that time, all material will be consigned by AlliedSignal. In the second phase, the operation will be relocated to the Ottawa facility, which EFTC is purchasing from AlliedSignal.

Prior to the relocation, EFTC will renovate the facility. While in the second phase, materials will continue to be consigned by AlliedSignal. In the third phase, the operation will be converted to EFTC's Oracle-based operating system and EFTC will assume the material supply chain. It is anticipated that the three-phase transition will be completed by the end of the second quarter of 1999.

Once the three-phase transition is completed, the operation is anticipated to generate approximately $20 million of revenue on an annualized basis.

EFTC, founded in 1981, is a provider of electronic manufacturing services exclusively focusing on high-mix manufacturing, including circuit card assembly, quick-turn manufacturing, prototype services, build-to-order, and repair and warranty services. Additionally, EFTC provides design for manufacturing (DFM), design for test (DFT), and design for serviceability (DFS) engineering services.

The company's facilities are located in Arizona, Colorado, Florida, Kentucky, Massachusetts, New Hampshire, Oregon, Tennessee, and Washington State. EFTC employs approximately 2,000 people at these facilities.

The company manufactures and/or repairs products for OEM customers in the aerospace/avionics, medical, instrumentation, computer-related, and communications industries. EFTC is headquartered at 9351 Grant Street, Sixth Floor, Denver, Colorado 80229; phone 303/451-8200; fax 303/280-8358.

This release contains forward-looking statements regarding future events or future financial performance of the company. Such statements are just predictions and actual events or results may differ materially. All of the company's orders and contracts are subject to cancellation. We refer you to the documents the company files from time to time with the SEC, specifically our 10K and 10Q reports. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.