Securities Fraud Class Action Suit Against EFTC Corporation and Its Officers and Directors Alleging Misrepresentations and Insider Trading.

SAN DIEGO--(BUSINESS WIRE)--Oct. 8, 1998--Milberg Weiss today announced that a class fraud action has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of EFTC Corporation ("EFTC") (NASDAQ:EFTC) common stock between June 2, 1998 and August 20, 1998 (the "Class Period").

The complaint charges EFTC and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at [e-mail].

EFTC is a provider of manufacturing services to equipment manufacturers. In early 1998, EFTC's insiders realized that EFTC's growth from customers other than Allied Signal had in fact turned negative. The Company also realized that its business with Allied Signal had reached near full volume and would not able to continue its recent pattern of strong growth. Knowing that EFTC's prospects in both areas were dismal, the defendants sought to quickly complete a secondary offering in order to cash out of their EFTC holdings at artificially inflated prices before the true facts concerning the Company's operations and prospects were revealed.

In order to successfully complete the bailout, the defendants concealed the adverse trends EFTC was then experiencing and the material impact this was having on EFTC's revenues. Thereafter, as rumors about EFTC's declining revenue growth and impaired prospects reached the market, the price of EFTC's stock began to drop. Finally, on August 20, 1998, the defendants were forced to reveal that the Company was not growing despite defendants' earlier representations. Thereafter, EFTC stock continued to drop, falling to just $2-7/8 per share, almost 80% lower than the $14 per share level where defendants had sold $42 million of EFTC stock to investors just 10 weeks earlier.

Plaintiff seeks to recover damages on behalf of all purchasers of EFTC common stock during the Class Period (the "Class"). The plaintiff is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 30 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigations pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's website at http://www.milberg.com.