Automation Tooling Systems Firm Moves Into China

ATS Automation Tooling Systems has entered into a strategic relationship with GD Technologies, a private Chinese-based precision machining company, and is expanding two automation systems facilities in China to further its growth strategy in Asia. GD Technologies is a rapidly-growing high precision machining company that serves the computer-electronics, disk drive, healthcare and other industries. Established in China in 2003, it has extensive local contacts, assembly, test and supply chain management capabilities and operations in Shanghai and Dongguan. To formalize its relationship with GD Technologies, ATS has acquired a minority ownership interest in the business for approximately Cdn $2 million. Proceeds from the ATS equity subscription will be invested by GD Technologies to support its continuing growth. ATS and GD Technologies have also agreed to co-locate in adjacent leased facilities in both Dongguan and Shanghai to increase operational efficiencies and better serve customers. 'I am very pleased that we're elevating our already successful supply relationship with GD Technologies to a strategic one,' said Ron Jutras, ATS president and CEO. 'It is a successful, highly regarded and rapidly growing precision machining business in China led by a very capable and respected leader, Jeremy Ng. Today's announcement adds significant and immediate capabilities to ATS in China to support customer needs and accelerated growth potential for both ATS and GD. This expanded relationship will encompass supply, joint marketing and customer development. Our equity investment in GD further solidifies this now strategic relationship and also enables ATS to participate in the continuing success of the GD business.' * ATS capacity expansions in China - the ATS facility expansion will see the company increase its manufacturing presence in China by relocating the respective ASG operations in Dongguan and Shanghai to new, larger leased spaces. Both relocations are expected to be complete during the first quarter of fiscal 2007 (three months ended June, 2006) and will bring the ASG facility in Dongguan to 39,000ft2, an increase of 35,000ft2. and the Shanghai facility to 13,000ft2, an increase of 7,000ft2. 'Today's announcement represents the next phase of our internal expansion plans in China,' said Jutras. 'Our automation systems presence in China dates back to 1996 through our facilities in Tianjin and more recently in Shanghai and Dongguan, in the southern region of China. These operations have already established a leading presence for ATS in China and provide us with a solid platform to accelerate our growth and take better advantage of the rapidly-developing manufacturing market in China. Our global customers are increasingly expanding their base of manufacturing in China, providing a great opportunity for ATS to continue to build our strong trusted relationships with key customer accounts and successfully grow our business in China as well as in North America and Europe.' * ATS in Asia - as the leader in the Asian automation market, ATS will have over 150,000ft2 of manufacturing space in the region and over 300 employees, with three manufacturing facilities in China in the regions of Dongguan, Shanghai and Tianjin and manufacturing facilities in Penang, Malaysia and Singapore. ATS also has sales and service offices located in Teparuk, Thailand and Wuxi, China. In fiscal 2005, ATS doubled its revenue generated from the region over the previous year to approximately Cdn$82 million. * About ATS - ATS Automation Tooling Systems is the industry's leading designer and producer of turn-key automated manufacturing and test systems, which are used primarily by multinational corporations operating in a variety of industries including: healthcare, computer/electronics, automotive, and consumer products. ATS is also an emerging leader in the rapidly growing market for solar energy cells and modules. The Company also makes precision components and subassemblies using its own custom-built manufacturing systems, process knowledge and automation technology. ATS employs approximately 3,900 people at 26 manufacturing facilities in Canada, the United States, Europe and Asia-Pacific. The Company's shares are traded on The Toronto Stock Exchange under the symbol ATA.