GROUP TECHNOLOGIES PURCHASES MANUFACTURING ASSETS FROM IBM; ACQUISITION ESTABLISHES PRODUCTION BASE IN BRAZIL.

TAMPA, Fla.--(BUSINESS WIRE)--July 7, 1995--Group Technologies Corporation (Nasdaq/NM:GRTK) today announced that it has purchased certain manufacturing equipment and other assets in Hortolandia, Brazil, from IBM (NYSE:IBM). Hortolandia is located in Sao Paulo State within the metropolitan area of Campinas, Brazil. Under the terms of the agreement, Group Technologies will utilize the acquired equipment to establish its own center to manufacture circuit boards using surface-mounted technology ("SMT") and to produce other electronic assemblies for IBM and other manufacturers of original equipment. Group Technologies has signed a contract to be the exclusive supplier of SMT circuit boards for IBM's Brazilian operations for four years.

Brazilian law allows foreign companies to sell personal computers and related electronics at a significant tax advantage if the motherboard and computer are produced in Brazil. Jack Calderon, vice president of international operations of Group Technologies, said, "This investment in Brazil will enable us to offer our customers a significant competitive advantage in the rapidly developing South American market. The initial employment of the new center will be approximately 120 and will involve two separate SMT production lines. Establishing this operation will also complement our existing facilities in Mexico, positioning Group Technologies as the largest U.S.-based contract manufacturer operating in Latin America. We believe this positioning makes us a logical manufacturing partner to large OEMs seeking to expand their presence in the fast-growing Latin American markets."

Headquartered in Tampa, Florida, Group Technologies provides advanced manufacturing, engineering and testing services to manufacturers of electronic products. The Company manufactures complex circuit card assemblies and subsystems used in products serving a wide variety of markets, including computer, communications, instrumentation, gaming, industrial, automotive, consumer, and military.

CONTACT: Group Technologies Corp., Tampa

Jack Calderon, 813/972-6328