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Smartflex plans for future growth with new Philippines facility.

TUSTIN, Calif.--(BUSINESS WIRE)--March 15, 1996--Smartflex Systems Inc. (NASDAQ:SFLX) Friday announced that it has completed its evaluation of potential sites for establishing a high-volume Far East manufacturing facility.

The new facility will be located in Cebu, the Philippines, and will be within the Mactan Export Processing Zone, an area which encourages business investment through various government incentive programs. The island of Cebu has a population of approximately 3 million and is about one hour's flight south of Manila.

The Cebu facility will provide an additional 30,000 square feet of manufacturing space for high-volume precision assembly. Smartflex presently expects the facility to be customer-qualified, and in volume production, in the third quarter of 1996. At full capacity, the facility will employ approximately 400 people and manufacture 200,000 flexible interconnect assemblies per week.

Responsible for the Cebu facility will be Eleazar Duclayan, General Manager, who has 20 years of manufacturing experience. Duclayan was previously director of operations at Sunward Technologies Philippines, a Read-Rite company, which provides head stack assemblies to the computer disk drive industry.

Smartflex currently operates a dedicated manufacturing line in Manila within the facilities of Electronic Assemblies Inc. (EAI) which was brought into production in 1994. Smartflex's decision to expand its operations in the Philippines was based on the excellent productivity and quality attained within the Manila facility.

The Cebu facility will give Smartflex expanded Far East capacity to support increasing demands for precision assembly by customers in the Asia-Pacific region. Smartflex also operates manufacturing facilities in Tustin; Monterrey, Mexico; and Singapore.

Smartflex Systems Inc., with headquarters in Tustin, is an electronic manufacturing services provider of sophisticated electronic assemblies and sub-assemblies. Smartflex provides comprehensive interconnect solutions, specializing in precision surface mount technology on flexible substrates.

CONTACT: Smartflex

Al Castleman, 714/838-8737

or

FiMaC

Juna Rowland, 310/493-6983
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Publication:Business Wire
Date:Mar 15, 1996
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