CTI Technology, Inc. and PowerSki International Corp. Sign $50 million, 3-year Manufacturing Agreement.

Business/Technology Editors

SPRINGFIELD, Mass.--(BUSINESS WIRE)--Oct. 11, 2000

CTI Technology Inc. (CTI)-(OTC: CTHI) a provider of electronic manufacturing services (EMS) announced today that it has signed a 3-year manufacturing agreement with PowerSki International Corporation of Brea, California (PSI). CTI will provide full turnkey-sourcing of materials, production, testing and order fulfillment for PowerSki's patented motorized surfboard product containing proprietary electronic controls and engine designs. PowerSki International Corporation and CTI signed the agreement at the International Marine Trades Exhibition Conference (IMTEC) held September 25-29, 2000, in Orlando, Fl.

The initial order for CTI will include startup costs and preproduction units valued at approximately $300,000 with full production expected to start during 1Q-2001. Total value for this contract is $50 million for a set volume level over the 3-year term and provides for further increases in volume, based on market acceptance of the product and includes a cost saving formula for both companies. CTI will begin manufacturing the Powerski product at the company's facilities in Yanceyville, NC and Rosarito, Mexico beginning in the 4th quarter-2000.

"We are excited to be partners with PowerSki International Corporation as they launch their new product line and we look forward to providing superior services in material sourcing, manufacturing and order fulfillment. This manufacturing agreement allows CTI Technology, Inc. to expand its worldwide manufacturing base while providing the company a significant new customer to serve." said Chairman and CEO George C. Davies.

"We're pleased to be working with CTI Technology because this contract places us on a fast track to full production of the jetboard," said Bob Montgomery, PSI founder and CEO. "Partnering with CTI offers us strong marketing capabilities while offsetting the capital needs required for bringing this unique product to market."

About CTI Technology, Inc.

Based in Springfield, MA., CTI provides custom electronic manufacturing services to original equipment manufacturers in the electronics, computer, medical, and telecommunications industries. These services include design assistance and prototype production at the product development stage and a wide variety of assembly, integration, packaging, and test services at different levels of volume production. These services benefit customers by reducing time to market for new and existing products, and by reducing overall sourcing and manufacturing costs at various stages of product growth. CTI currently has four operating groups with 118,000 square feet of manufacturing capacity: CTI-Northeast Technical Services, Inc., of Springfield, MA, CTI-Clairemont Electronics, Inc. of Yanceyville, NC, CTI-Electronics, Inc. of Pompano Beach, FL, and CTI International, LTD (C.T.I. de Mexico S.A. de C.V.) of Rosarito, Mexico.

About PowerSki International Corporation.

PowerSki International Corp (PSI), Brea, CA manufactures and markets the POWERSKI(TM) JETBOARD(TM) Igniter 2000, a patented, solo-rider standup personal watercraft. Since 1995, PSI has received more than 30,000 inquiries from around the world about purchasing a jetboard.

The sleek, low profile, surfboard-shaped PWC is lightweight, hydrodynamic, motorized and equipped with controls on a handle, is currently protected by numerous U.S. and foreign issued patents with many others pending, worldwide. PSI currently has two product lines:

--A two-stroke, 250cc water-cooled engine that weighs between 30-40lbs and produces 25-55 hp, depending on displacement (a four-stroke engine is currently in the design phase).

--An 8-ft. 4-in., 100 lb board with a streamlined composite hull featuring retractable bottom fins that serve as water brakes. The jetboard's modular assembly consists of grip, "start" and "stop" buttons, independent left and right thumb throttles, speedometer, fuel gauges and safety kill switch.

The POWERSKI(TM) JETBOARD(TM) Igniter 2000 recently won a Design News Magazine 2000 Engineering Achievement Award, as well a Popular Mechanics Magazine Design & Engineering Award 2000.

PSI has teamed with a select collection of highly qualified strategic partners to bring the POWERSKI(TM) JETBOARD(TM)Igniter 2000 to the world. In addition to CTI, this group includes: Pratt & Whitney's AutoAir Division, Compaq Computer Corp., Parametric Technologies Corp., Source One, Porvair Advanced Materials, Zodiac International and others.

Some of the information-contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors over which the company has little or no control. Such factors include general economic and business conditions and commercial acceptance of the company's products and services.