Merix Corporation acquires Data Circuit Systems, Inc.

Merix Corporation (Nasdaq:MERX) has announced the acquisition of Data Circuit Systems, Inc., a provider of high velocity, quick-turn printed circuit board fabrication services for a total purchase price of $43.0 million, consisting of $41.0 million in cash and a $2.0 million note. For its fiscal year ended September 30, 2004, Data Circuit Systems had sales of $27.7 million, net income of $2.3 million and EBITDA of $5.8 million.

Data Circuit Systems, located in San Jose, California, is a premier quick-turn manufacturer of complex, multi-layer printed circuit boards and provider of related engineering services. An experienced management team, together with strong technical capabilities, enables Data Circuit Systems to manufacture complex printed circuit boards in very compressed time frames. The majority of its sales are for prototypes and new product introductions. Data Circuit Systems distinguishes itself through delivery of superior service and support systems to its customers. The combination of Merix and Data Circuit Systems brings together leaders in the industry who offer their customers advanced technology and superior quick-turn services. The transaction is expected to be accretive to Merix' financial results.

Steve Robinson, President of Data Circuit Systems, stated "We have the highest respect and regard for Merix Corporation as an industry leader in advanced technology and engineering expertise. We take pride in joining the Merix team in order to further Merix' strategic initiative of developing a world-class quick-turn service offering. We think this combination creates a leading company that can support its collective customers on a seamless basis by offering services that support new product introduction though volume production."

Commenting on the transaction, Mark Hollinger, Chairman and Chief Executive Officer of Merix Corporation, said, "This transaction is very exciting for us. It combines two strong companies with complementary product offerings and customers, and who share a common set of values and a joint vision to create a world class company offering advanced technology, superior velocity services, and significant manufacturing capacity. Merix has been focused on growing and enhancing its quick-turn business for some time. While we have made significant progress in this endeavor, this combination enhances our market opportunity by providing added scale, tripling our customer base, diversifying our end markets, adding experienced rep firms to complement our direct sales force, and augmenting our quick-turn service offering to include 24 hour turnaround. Data Circuit System's reputation for service, quality, and delivery performance is very impressive, and it is attributable to the experience, talent, and dedication of Steve Robinson and his team. Together, we look forward to better serving our customers and capitalizing on our complementary capabilities."