EFTC Closes Honeywell Transaction, Signs Lease On Facility.

DENVER, CO--(BUSINESS WIRE)--April 05, 1999--EFTC Corporation (NASDAQ: EFTC), an electronic manufacturing services company, specializing in high mix services, announced today the closing of the first phase of its transactions with Honeywell, Commercial Avionics Systems (CAS). In the first phase, EFTC has acquired assets associated with the former Business and Commuter Aviation Systems and transferred approximately 200 people to its employment. Over the next several months, it is the parties intention to define similar arrangements for the former Air Transport Systems (ATS) and a facility in Tijuana, Mexico. Honeywell consolidated ATS and BCAS into CAS earlier this year.

The acquisition of assets and transfer of employees is accompanied by a ten year supply agreement from Honeywell to EFTC to manufacture circuit cards used in CAS avionics product line. EFTC anticipates that the supply agreement will generate in excess of $100M in revenues beginning in the year 2000.

EFTC has also signed a lease on a new facility located on Bell Road and I-17 in the Phoenix metro area. The facility is approximately 100,000 square feet. Over the next several months EFTC will fit-up the facility and prepare it for production later this year.

The new facility will become EFTC's Southwest Commercial Operation and will specialize in the manufacture of high mix products used in Commercial Operations. The facility will complement EFTC's facility in Tucson, which specializes in products made to military specifications.

Honeywell is the world's leading provider of control technologies for buildings, homes, industry, space, and aviation. The company employs 57,000 people in 95 countries, and had 1998 sales of $8.4 billion.

EFTC, a provider of high mix electronic manufacturing services, is headquartered at 9351 Grant Street, 6th Floor, Denver, Colorado, 80229, and has facilities located in Arizona, Florida, Kansas, Kentucky, Massachusetts, New Hampshire, Oregon, Tennessee, and Washington State. The Company provides its services to OEM customers in the aerospace/avionics, medical, instrumentation, computer related, and communications industries. EFTC is focused on linking logistic capabilities, small-lot processing expertise, and web-based services to help OEMs transition from industrial age models of mass production to information age models of mass customization. The company provides prototype, complex circuit card assembly, build-to-order, and repair/warranty services. EFTC employs approximately 2000 people nationwide.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain of the above statements contained in this press release, are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements include the the parties intention to definitize similar arrangements for the former Air Transport Division (ATS) and a facility in Tijuana, Mexico, that the supply agreement will generate in excess of $100M in revenues beginning in the year 2000, that EFTC will fit-up the facility and prepare it for production later this year and that the facility will become EFTC's Southwest Commercial Operation and will specialize in the manufacture of high mix products used in Commercial Operations and will complement EFTC's facility in Tucson, which specializes in products made to military specifications. Factors that could cause actual results to differ materially include the following: business conditions and growth in the Company's industry and in the general economy; competitive factors; risks due to shifts in market demand; and the risk factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission as well as assumptions regarding the foregoing. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors.

Readers are cautioned not to place undue reliance on these forward-looking statements.