C-MAC Closes Previously Announced Transaction With Nortel.

Business Editors

MONTREAL--(BUSINESS WIRE)--Nov. 2, 2001

C-MAC Industries Inc. (NYSE:EMS) (TSE:CMS.), a global leader of integrated electronic systems manufacturing and engineering solutions, announced today the closing of the previously announced transaction with Nortel Networks to supply systems integration, configuration and testing of DMS circuit-switching products, as well as related supply chain services.

These operations are currently being performed in-house at Nortel Networks facilities in Research Triangle Park, North Carolina and Monkstown, Northern Ireland, and will be transferred to C-MAC's operations in Creedmoor, North Carolina and Carrickfergus, Northern Ireland.

This transaction establishes C-MAC's leadership in Level 5 systems testing, systems integration, supply chain management and total order fulfillment. With the addition of this strategic step in the supply chain, C-MAC will provide fully configured DMS switching products to Nortel Networks distribution centers and customer sites around the world. Nortel Networks' installed base of fully digital central office switching products is amongst the largest in the world.

Nortel Networks is a global leader in networking and communications solutions and infrastructure for service providers and corporations. Nortel Networks conducts business in more than 150 countries.

"Fourteen years ago, C-MAC became Nortel Networks' first outsourcing partner. Today's announcement demonstrates their confidence in our ability to provide full system solutions. This transaction will allow C-MAC to expand its business offering upstream in the telecom supply chain. Furthermore, this capability can be offered to other telecom and data communications companies," said Dennis Wood, Chairman, President and Chief Executive Officer of C-MAC Industries Inc.

About C-MAC

C-MAC is a leading internationally diversified designer and manufacturer of integrated electronic manufacturing solutions, from components to full systems, primarily serving the communications, automotive, instrumentation, defense and aerospace equipment markets worldwide. C-MAC services also include product design, supply chain management, and assembly and testing. C-MAC, headquartered in Montreal (Quebec, Canada), employs more than 8,500 employees and operates 51 manufacturing facilities located in Belgium, Brazil, Canada, China, France, Germany, India, Mexico, the Republic of Ireland, the United Kingdom and the United States.

C-MAC's manufacturing operations are supported by eight strategically located design centers in North America and Europe. C-MAC (CMS) stock is traded on The Toronto Stock Exchange and on the New York Stock Exchange (EMS). For additional information, visit our web site at http://www.cmac.com

Certain statements contained in this press release regarding C-MAC's future operating results or performance or business prospects and any other statements not constituting historical facts are "forward-looking statements" subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect only C-MAC's current beliefs and specific assumptions with respect to future business decisions and results are based on information currently available to C-MAC. Accordingly, these statements are subject to risks, uncertainties and contingencies, which could cause C-MAC's actual operating results, performance or business prospects to differ from those expressed in, or implied by, these statements.