CMC Industries Announces International Expansion.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 15, 1997--CMC Industries, Inc. (NASDAQ: CMCI) today announced plans to build a manufacturing facility in Hermosillo, Mexico, and to open an international purchasing office in Taiwan. The Taiwan office will commence operations within the next month while the facility in Hermosillo is currently expected to become operational in the third quarter of the current fiscal year and will provide full SMT assembly as well as complete system integration, test and box build capabilities.

Matthew Landa, President and CEO of CMC Industries, commented, "We are pleased to be establishing an international presence and are excited about the opportunities these operations give CMC. Our customers look to us to provide a full suite of procurement and manufacturing capabilities throughout the world. Hermosillo offers attractive logistics for our customers and the location we have chosen, between two leading technical universities within the city, provides access to a solid pool of quality engineers and technicians. The purchasing office in Taiwan gives us localized procurement capabilities in Asia, increasing our access to low cost pricing and material availability. We look forward to bringing these operations online for the benefit of our customers."

Headquartered in Santa Clara, California, CMC Industries is a leading provider of electronic manufacturing services to original equipment manufacturers in the Telecommunications, Computer and Electronics industries. The Company has manufacturing operations in Corinth, Mississippi and Santa Clara, California.

The matters set forth in this news release may contain forward looking statements. Actual results may differ materially from those described herein and are dependent on certain risks and uncertainties including, but not limited to, the timing and magnitude of orders from customers with projects currently in development as well as continued orders and growth in orders from customers already in volume production, the ability of the Company to accurately forecast the timing and magnitude of future customer orders and appropriately adjust its expenditures in respect thereof, changes in customer mix and volume, competition, component availability, inventory obsolescence, business conditions in the general economy as well as the industries in which the Company and the Company's customers compete and other risk factors such as those detailed in the Company's SEC reports.

CONTACT: CMC Industries Inc.

Andrew J. Moley, 601/287-3771 Ext. 170