Flat panel maker awards $12.7m follow on order

ATS Automation Tooling Systems has received an additional US$12.7 million in follow-on automation systems orders from a major supplier of flat panel display materials.

ATS Automation Tooling Systems today announced it has received an additional US $12.7 million (CDN $16.6 million) in follow-on automation systems orders from a major supplier of flat panel display materials.

ATS previously announced on August 26, 2004 that it had been awarded purchase orders worth US $15.5 million (CDN $20.3 million) from the same customer.

These new orders bring the total value of orders awarded to ATS under this customer program to approximately US $28 million (CDN $37 million).

These additional automated systems for flat panel manufacturing are similar to those ordered in August and will also be installed in the customer's Asian facilities.

The systems will be produced and delivered in stages over the next fourteen months.

ATS will primarily use the resources of its US West Coast and Asian operations to build the systems under the contract.

"These orders are another clear and strong demonstration of the benefits of our long-term corporate strategies which align ATS global capabilities with the needs of high-growth multinational manufacturing customers," said Klaus Woerner, ATS President and Chief Executive Officer.

"The combined value of these orders won in the past few weeks totaling $37 million underscores the size and importance of this customer program and the growing flat panel display market.

This adds greatly to our automation systems order backlog for our West Coast and Asian operations and it shows the strategic importance of these locations which have extensive experience in serving computer electronics customers and who have served this key customer well for a number of years." "By consistently delivering great value through our industry-leading skills, technologies and global manufacturing capabilities, ATS is now the customer's preferred supplier.

Best of all, over time, we believe this strategic customer will require additional automation in future and ATS will be perfectly positioned to serve these needs as well." ATS entered the flat panel display market almost 10 years ago and since then has developed a number of industry-specific capabilities and skill sets including high speed vision inspection, precision material handling of highly fragile materials, and state of the art software analysis and process control tools for complex automation that enable customers to achieve higher inspection rates, enhanced yields and lower total cost of ownership.

ATS cannot disclose the name of the customer and specific project details because of strict confidentiality agreements.

About the flat panel materials market Flat panel display shipments are estimated to be worth US $32.5 billion annually, currently representing about half of the total electronic display market.

Through 2007, forecasts indicate the flat panel display market will grow at an average annual rate of almost 18% compared to 12% for the total electronic display market.

Display materials experienced shipments of US $12 billion in 2002 and are projected to grow to approximately US $23 billion by 2008.

ATS has been active in the computer-electronics market since 1978 and in the flat panel display segment since 1995.

Over the past five years, ATS has generated over $870 million in revenues from computer-electronics customers.

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