EFTC Cuts Costs Through Plant Consolidation.

DENVER--(BUSINESS WIRE)--Nov. 13, 1998--EFTC Corporation (NASDAQ:EFTC) today announced that it will consolidate plants in order to reduce costs and achieve greater capacity utilization.

In early 1999, the company plans to close its Rocky Mountain Operation, which is located in Greeley, Colorado. Certain key customers will be transferred to other EFTC manufacturing locations. Approximately 210 people will be affected by this action. Existing employment opportunities at other EFTC locations will be made available to affected employees where possible. EFTC will continue to maintain its headquarters at its current location in Denver, Colorado. A conference call to discuss this release will be held on Monday, November 16, 1998, at 9:00 a.m. Eastern Time. The conference call number is: 212/346-6380.

Key Highlights

o Expected $5-8 million annualized cost savings

o Prospects for improvements in profitability and cash flow

o Fourth-quarter charges of up to $10-12 million

o Increased capacity utilization

Overall, EFTC expects to realize cost savings of $5-8 million on an annualized basis beginning after completion of the consolidation. The Company expects to incur pre-tax restructuring charges of up to $10-12 million in the fourth quarter.

The decision as to which plant to close was based on customer regional preferences and plant profitability. In light of EFTC's recent acquisitions, the Company will be able to increase its capacity utilization without sacrificing its regionalization strategy.

"Although these decisions are always difficult, after careful consideration and analysis, we believe this action will improve EFTC's prospects for increased profitability, and is in the best interests of our customers, our 2,000 employees nationwide, and our shareholders," said Jack Calderon, EFTC Chairman and CEO.

Anticipated additional benefits include improved asset utilization and reductions in future capital expenditures resulting from the redeployment of certain assets to other EFTC locations. The Company also believes that this action better positions EFTC to continue to invest in its key strategic differentiators, including hub-based build-to-order and repair services, Asynchronous Process Manufacturing (APM) methods, and value-added web-based services, such as its Component Obsolescence Program (COP).

"We believe this consolidation will have a long-term positive impact on the financial position of EFTC," said Stu Fuhlendorf, EFTC's Chief Financial Officer. "We anticipate that our return on assets, return on equity, and other key financial indicators can be improved by this action."

EFTC is an electronic manufacturing services provider focused on linking logistic capabilities, high-mix 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 high-mix manufacturing services including prototype, complex circuit card assembly, build-to-order, and repair/warranty services. EFTC was founded in 1981, and has facilities located in Arizona, Colorado, 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 headquartered at 9351 Grant Street, Sixth Floor, Denver, Colorado 80229; phone: [phone]; fax: [phone]. EFTC employs approximately 2,000 people nationwide.

Certain of the above statements are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include the Company's prospects for achieving cost savings, increased capacity utilization, improved profitability and other improved financial indicators, the amount of restructuring charges and other statements that do not involve historical fact. These statements involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expressed in or implied by such forward-looking statements. Important factors that could cause such differences include, but are not limited to, changes in economic or business conditions in general or affecting the electronic products industry in particular, changes in the competitive environment in which the Company operates, the Company's success in retaining customers affected by the plant closure, the Company's success in limiting costs associated with the closure and other matters identified as "Risk Factors" or otherwise described in the Company's filings with the Securities and Exchange Commission.