Devtek subsidiary sells license rights.

MARKHAM, ONTARIO--(BUSINESS WIRE)--March 11, 1997--(TSE, ME DEK.A., ME, TSE DEK.B.) Devtek Electronic Packaging Systems (DEPS), a subsidiary of Markham-based Devtek Corporation, has concluded an agreement with Rainford Group.

DEPS had acquired the exclusive license from U.K.-based Rainford Group in 1994 to manufacture and sell under the Rainford proprietary name a range of enclosures for high-value electronic equipment.

As a result of the recent acquisition of Rainford Group by a U.S.-based competitor, DEPS concluded that the continued segmentation of licensed and non-licensed products would become extremely difficult and decided to enter into this alternative arrangement. Under the new arrangement, which terminates the license agreement, DEPS retains the unrestricted right to continue to manufacture and sell a full range of products and services. DEPS will phase out, over the next year, use of the Rainford name on any products which it sells.

This transaction results in a gain and proceeds of $9.0 million, net of taxes and associated expenses, and increases Devtek's consolidated fiscal 1997 third quarter earnings by $0.50 per share in addition to normal income from operations.

DEPS' product range and ongoing product development will ensure its customers continue to receive up to date competitive products. -0-

Devtek is an international developer and manufacturer of systems and components for the automotive, aerospace and telecommunications markets.

CONTACT: Devtek Corporation

Murray Kingsburgh, 905/477-6861

905/477-0481 (FAX)

Jan Bornstein, 905/477-6861

905/477-0481 (FAX)