Praegitzer Industries, Inc. Enters Into a Letter of Intent to Acquire Intracon Design Ltd. Facility Near Edinburgh, Scotland.

DALLAS, Ore.--(BUSINESS WIRE)--March 30, 1999--

First Step Toward Realizing Praegitzer's European Expansion Goal

Praegitzer Industries Inc. (Nasdaq:PGTZ) today announced that they entered into a letter of intent to acquire Intracon Design Limited of Scotland, U.K.

Intracon Design will become Praegitzer Industries, Ltd. The company offers engineering services for signal integrity, one of the most crucial factors in leading-edge printed circuit board (PCB) design today. The addition of Intracon to Praegitzer Industries, Inc. complements Praegitzer's engineering services offering in the contract PCB design and fabrication business.

Many of Praegitzer's major customers will now have the availability of a local Praegitzer Design presence and support team in Europe. This also gives customers an additional facility with which to "double team" design efforts for around-the-clock design work, enabling rapid time-to-market.

"Throughout Europe, Intracon Design Limited is known as a first class design operation," said Steve Smith, vice president of operations for Praegitzer Industries, Inc. "Intracon's staff is a solid, quality group of individuals from which we can build and grow. This in addition to their engineering services capabilities and ISO 9001 certification make them a very desirable company to bring into the Praegitzer organization."

"For this initial entry into the European market, it is important to Praegitzer to have a design location in Scotland," said David Bell, director of sales for Europe, Middle East and Africa for Praegitzer Industries, Inc. "This supports the expansion of many of our major customers, bringing them cutting-edge solutions and developing local support for those customers."

Immediate plans call for Praegitzer to hire a customer quality engineer and a customer service person to be based out of the Scotland office. In the near future the company also intends to hire additional designers in order to be able to fully support increasing customer demands.

"This is a tremendous boost in resources for Intracon. We had a need to work closely with a high-tech fabricator and Praegitzer impressed us. This is a perfect fit for us," said Derek Laidlaw, currently the managing director of Intracon, who will become Praegitzer Industries' UK regional manager. "The feeling throughout Intracon is very positive. The employees feel secure in becoming part of a larger group. They'll also get to progress at a faster rate because we'll now have the resources of the largest design team in the United States with which to share information and technical expertise."

About Praegitzer Industries, Inc.

Praegitzer Industries, Inc., founded in 1981, is a leader in providing electronics original equipment manufacturers and contract manufacturers with a full range of printed circuit board and interconnect solutions. Praegitzer has six fabrication facilities and 13 design centers serving customers in four key electronics industry segments: data and telecommunications; computer and peripherals; industrial and instrumentation and business and consumer. It is a publicly traded company (Nasdaq:PGTZ) and employs more than 2,000 people. For more information on Praegitzer Industries, Inc., visit www.pii.com.