C-MAC Industries Inc. Completes the Acquisition of Product Integrity Engineering, Product Assurance Testing & Other Design Related Functions From Nortel Networks.

Business Editors

MONTREAL--(BUSINESS WIRE)--Aug. 22, 2000

C-MAC Industries Inc. (TSE:CMS.)(NYSE:EMS) a world leader in the manufacture of fully integrated electronic systems and engineering solutions, announced today that it has completed the acquisition of certain Electronics Computer-Aided Design (ECAD), Electronic Systems Packaging (ESP), Product Integrity Engineering (PI) and Product Assurance (PA) activities from Nortel Networks.

The transaction includes the acquisition of test and investigation activities and equipment in the USA, Canada and the UK, the transfer of the related employees and an expansion of C-MAC's existing contracts with Nortel Networks for the supply of products and design services.

The approximately 100 skilled technical staff joining C-MAC with this transaction include specialists with expertise in EMC and thermal analysis, a broad range of skills in design for regulatory compliance and a comprehensive materials investigation capability. The acquisition also includes significant PI-related test capabilities in North America and Europe.

Nortel Networks' ESP group, which was divested to C-MAC in October last year, has already grown by more than 30 %. With this latest acquisition C-MAC's overall team of approximately 400 engineers now includes more than 200 devoted to ESP design and related activities; a significant resource capable of contributing to projects from initial concept through to final regulatory approvals.

"Our ability to provide these vital design and support engineering services to our customers improves their time to market and considerably enhances our value to them", said Dennis Wood, C-MAC's Chairman, President and Chief Executive Officer.

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 7,300 employees and operates 44 manufacturing facilities located in Belgium, Canada, China, France, Germany, India, Mexico, the United Kingdom and the United States. C-MAC's manufacturing operations are supported by six strategically located design centers in North America and Europe. C-MAC stock is traded on The Toronto Stock Exchange (CMS) 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 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.

* Nortel Networks is a trademark of Nortel Networks