Category: Uncategorized
November 26, 2003

News Release: SMTEK International Receives Contract Expansion and New Awards Projected to Provide $16.0 Million Revenue Per Year

SMTEK International, Inc. (Nasdaq:SMTI), a provider of electronics manufacturing services, today announced the awarding of a contract expansion that is projected to provide approximately $6.5 million in revenue per year and the awarding of two new contracts that are projected to provide approximately $9.5 million in revenue per year. The contract expansion award, in the medical segment of SMTEK's business, will be produced in the Thailand facility while the new contracts, in the aerospace and industrial instrumentation segments of SMTEK's business, will be produced in the Southern California and Massachusetts facilities. Shipments on the contracts are scheduled to begin in the Company's third fiscal quarter ending March 2004 but are not projected to achieve full production run rates until late into our fourth fiscal quarter. The terms of all three contracts call for 90 days of purchase order commitments with a rolling forecast of twelve months. Each contract may be terminated by the customer upon notice as defined in each agreement.

Edward J. Smith, President and Chief Executive Officer of SMTEK, stated, 'We are very pleased with the confidence that all three of these customers have shown in our capabilities, quality, and commitment. In the contract expansion award, we believe we beat our competition by our success to date with this customer, having shipped over 70,000 boards without a reject. In the awarding of the two new contracts, the complexities of each deal were challenging and we are honored to have been chosen.'

He further noted, 'In all three awards we are very dependent on our customer's forecasting accuracy and our successful performance to the terms of the contract. The entire SMTEK team looks forward to the challenge of executing on such contracts and we believe our facilities are prepared.'

About SMTEK International, Inc.

Headquartered in Moorpark, Calif., SMTEK International, Inc. is an EMS provider serving original equipment manufacturers (OEMs) in the industrial instrumentation, medical, telecommunications, security, financial services automation, aerospace and defense industries. We provide integrated solutions to OEMs across the entire product life cycle, from design to manufacturing to end-of-life services, for the worldwide low to medium volume, high complexity segment of the EMS industry. We have five operating facilities with locations in Moorpark, Calif.; Santa Clara, Calif.; Marlborough, Mass.; Fort Lauderdale, Fla.; and the Ayuttya Province in Thailand. News from SMTEK is located at www.smtek.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbor provisions created by those sections. You can identify these statements by the fact that they use words such as 'anticipate,''estimate,''expect,''project,''intend,''plan,' 'believe,'and other words of similar meaning in connection with any discussion of future operating or financial performance. Any forward-looking statements are only predictions and may differ materially from actual future events or results. Readers are cautioned that forward-looking statements regarding future events and the future performance of SMTEK International, Inc. involve various risks and uncertainties that could cause actual results to differ materially from those described in these statements.

Readers are referred to the documents filed by SMTEK International, Inc. with the SEC, including our most recent Reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time, for a more complete description of important risk factors and other information with respect to risks and uncertainties relating to the materials in this press release, as well as to other aspects of our business and financial condition. We do not undertake, and specifically disclaim, any obligation to update forward-looking statements.

SOURCE: SMTEK International, Inc.

SMTEK International, Inc. Kirk A. Waldron, 805-532-2800 ext. 111 This email address is being protected from spambots. You need JavaScript enabled to view it.


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