DDL Electronics Subsidiary SMTEK Corp. Wins Long-Term, Multimillion-Dollar Contract From Haas Automation.

NEWBURY PARK, Calif.--(BUSINESS WIRE)--Aug. 31, 1998--DDL Electronics Inc. (NYSE:DDL) Monday reported that SMTEK Corp., one of its wholly owned operating subsidiaries, has signed a long-term partnership agreement with Haas Automation Inc. for the manufacture of customized electronic assemblies.

Gregory L. Horton, president of DDL and SMTEK, commented: "This is a very substantial, long-term engagement which we expect to ramp up to more than $10 million on an annualized basis. It represents another important step in our strategy of building partnerships with high-quality, growth-oriented companies such as Haas Automation."

Based in Oxnard, Calif., Haas Automation is a leader in the CNC machine-tools business.

"Our selection of SMTEK reflected that company's proven capabilities and the quality, price and value which it offers. We look forward to working closely with the SMTEK team to support Haas Automation's continuing growth," said Bob Whaley of Haas Automation.

Founded in 1987, SMTEK (www.smtek.com) provides integrated solutions across the entire product life cycle -- from design and manufacturing to end-of-life services -- for the worldwide low- to medium-volume, high-complexity electronic industries.

SMTEK offers its customers competitive outsourcing advantages including access to advanced design and manufacturing technologies, shortened product time to market, reduced cost of production and more effective asset utilization. The company has won numerous quality and service awards from its customers.

With headquarters in Newbury Park, DDL Electronics provides original -equipment manufacturers with full turnkey integrated design, engineering and electronics manufacturing services (EMS). The company serves OEMs in the instrumentation, communications, computer, medical and aerospace industries. EMS operations are located in Southern California, Florida and Northern Ireland.

Irlandus Circuits Ltd. of Northern Ireland, a wholly owned subsidiary, fabricates multilayer printed circuit boards.

Certain statements made above are forward-looking in nature and reflect DDL's current expectations and anticipated future plans. Such statements involve various risks and uncertainties that could cause actual results to differ materially from those forecast in the statements. Factors that might cause such differentiation would include without limitation the factors described as "Risk Factors" in the company's definitive proxy statement dated June 12, 1998, on file with the Securities and Exchange Commission.

    CONTACT: DDL Electronics Inc., Newbury Park
              Rick Vitelle, 805/376-9415, ext. 142
                   or
              Foley/Freisleben LLC, Los Angeles
              John Foley, 213/892-6322