ATS Automation Tooling Systems to Produce Private Label
Heat Sinks for World Leader Tyco Electronics
TSE Symbol: ATA
CAMBRIDGE, ON, and HARRISBURG, PA, March 27 /CNW/ - Tyco Electronics
Corporation and ATS Automation Tooling Systems Inc. (TSE: ATA) today announced
they have entered into a strategic agreement to expand sales in the multi-
billion dollar personal computer, server/work station market for thermal
managed solutions.
Under terms of the agreement, ATS will design and manufacture advanced
thermal management products for Tyco. Tyco will, in turn, package the
technology with its leading connector and interconnection systems and market
and sell the product bundle to its broad base of computer-electronics
customers. Joint development of custom thermal solutions will enable both
companies to maintain a competitive advantage by providing the market with
comprehensive, completely integrated thermal solutions that will add
significant value to customers seeking turnkey solutions.
"Tyco has made a concerted effort to expand its presence in the thermal
product market with our chip cooler and thermal interface materials
acquisitions. This agreement with ATS allows us to complement our current
technology and expand our thermal managed solutions into the computer,
consumer and communications markets," said Ralph Spayd, Business Manager, Tyco
Electronics. "These markets consume an estimated 600 million thermal devices
annually. By selecting ATS to produce private label heat sinks for us, we
bring our OEM customers a more complete technology bundle, and more
specifically, a product that has already been qualified by industry leaders.
ATS has a proven track record of delivering defect free product which
compliments our global manufacturing strategy."
ATS has been a manufacturer of advanced thermal products since 1997 and
in the interim has shipped more than 30 million thermal devices to
microelectronics customers, including build-to-print and ATS developed
products. ATS further sharpened its focus on this market opportunity in 2001
by adding important proprietary thermal technology, under license, from
Robinson Fin.
"This agreement is an important breakthrough for ATS in establishing our
presence as a key provider of thermal management devices," said Bruce Seeley,
Vice President, ATS Precision Components. "Tyco's worldwide sales network
enables our solutions to be aggressively marketed globally. We think this
agreement will have a very positive effect on our sales and most important,
will bring customers a proven, packaged solution built around Tyco's connector-
interconnection systems."
About Tyco Electronics Corporation
----------------------------------
A wholly-owned subsidiary of Tyco International, Tyco Electronics
(www.tycoelectronics.com) offers a broad range of high quality electronic
component products for OEM applications, utility/energy, outside plant and
premise networking installations and more. Products from well-known brand
names include connectors/interconnection systems, terminal blocks, relays,
electronic modules, circuit protection devices, fiber optic components, wire
and cable, switches, wireless components, sensors, printed circuit boards,
touch screens and application tooling. Tyco also provides products to
insulate, protect, hold, bundle and identify electrical harnesses.
About ATS
---------
ATS Automation Tooling Systems Inc. (www.atsautomation.com) 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: automotive,
computer/electronics, healthcare, and consumer products. The Company also
makes precision components and sub-assemblies, including thermal management
solutions, using its own custom-built manufacturing systems, process knowledge
and automation technology. ATS employs approximately 3,200 people at 26
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.
About Thermal Electronics Management
------------------------------------
The majority of electronic devices used today are based on silicon
integrated circuits. During operation, all silicon devices produce heat as a
byproduct of electrical resistance. Excessive heating can cause these devices
to fail. As a result, advanced cooling mechanisms are required to dissipate
heat.
Electronic Thermal Management devices are essentially cooling products...
devices that cool electronics at the discrete component level and through the
entire system. The need for these devices becomes more acute as
microprocessors are further miniaturized and power levels increase heat
output. Thermal management products are considered the only component category
in PCs, servers and telecommunications for which the value is expected to
increase over time.
Certain forward looking statements are made in this news release,
including statements regarding possible future business. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of
ATS' products, technologies, customer requirements and other risks
detailed from time to time in ATS' periodic reports filed with Canadian
regulatory authorities.
%SEDAR: 00002017E
For further information: Ron Jutras, Chief Financial Officer, (519) 653 6500
© 2002 Canada Newswire Ltd.