IEC Accepts Refinancing Proposal; Shares Expected to Trade on OTC Bulletin Board

Business Wire, Nov 1, 2002

Business & High-Tech Editors

NEWARK, N.Y.--(BUSINESS WIRE)--Nov. 1, 2002

IEC Electronics Corp. (NASDAQ: IECE) announced today that it has accepted term sheets involving a $4,700,000 Senior Secured Credit Facility and a $2,300,000 Secured Term Loan designed to repay existing revolver and term debt to HSBC Bank USA and General Electric Capital Corporation and to provide working capital.

The closing of the two credit facilities is subject to certain conditions, including, among other things, structuring payment terms with the Company's unsecured trade creditors which are acceptable to the new lenders. Since risks remain, no assurances can be made; however, the Company believes the closing will occur before the end of the current calendar quarter.

W. Barry Gilbert, Chairman of the Board and Acting CEO, stated, "Although the road ahead will continue to be extremely challenging, this is an important milestone in the Company's planned return to profitable operations. We are profoundly grateful for the support and loyalty of our customers, suppliers, employees and shareholders during the difficult months we have recently experienced."

On October 25, 2002, IEC was notified by NASDAQ that it was not in compliance with NASDAQ Marketplace Rule 4310(c)(7) regarding market value of publicly held shares and Marketplace Rule 4310(c)(4) regarding minimum bid price. As previously announced, IEC was notified on September 13, 2002 by NASDAQ that it was not in compliance with NASDAQ Marketplace Rule 4310(c)(2)(B) concerning minimum net tangible assets and minimum stockholders' equity requirements and with Marketplace Rule 4310(c)(13) because of its dues delinquency. As a result, IEC's common stock is subject to delisting from the NASDAQ SmallCap Market. IEC has decided not to continue to appeal the potential delisting of its securities by NASDAQ and is taking steps to have its shares available for trading on the "Over-the-Counter" ("OTC") Bulletin Board Market when delisting occurs. This is not expected to have any adverse effect on the refinancing.

IEC is a full service, ISO-9001 registered EMS provider. The Company offers its customers a wide range of services including design, prototype and volume printed circuit board assembly, material procurement and control, manufacturing and test engineering support, systems build, final packaging and distribution. Information regarding IEC can be found on its web site www.iec-electronics.com.

The foregoing, including any discussion regarding the Company's future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the Company, changes in customer requirements and in the volume of sales to principal customers, the ability of the Company to assimilate acquired businesses and to achieve the anticipated benefits of such acquisitions, competition and technological change, the ability of the Company to control manufacturing and operating costs, satisfactory relationships with vendors, the successful negotiation of extensions to existing financing or the negotiation of new financing on acceptable terms. The Company's actual results of operations may differ significantly from those contemplated by any forward-looking statements as a result of these and other factors, including factors set forth in the Company's 2001 Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission.