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SMTC and Alco enter into supply agreement for China based EMS and ODM service offerings.

SMTC Corporation (TSX:SMX), a leading provider of electronics manufacturing services, and Alco Electronics (HKEx:328), a Hong Kong based ODM (Original Design Manufacturing) and EMS provider, announced today that they have signed a definitive agreement whereby Alco will supply EMS and ODM services to SMTC and its customers on an as required basis.

"We are extremely pleased to have Alco as a partner. This agreement provides our customers with both a cost effective manufacturing solution in China and access to Alco's extensive ODM services," said Paul Walker, President and CEO of SMTC. "With revenues of $450 million, Alco's scale combined with their 35 years of manufacturing experience in the region make for a perfect fit for SMTC customers that require this lower cost alternative".

"Through this partnership with Alco, we are now able to bring our customers true Original Design Manufacturing (ODM) capabilities for a broad variety of consumer, commercial, and automotive products - with the added benefit of local, North American engineering support and program management," adds Richard Baxter, Senior VP of Global Design Services for SMTC. "Alco's experience as an ODM spans more than thirty years and encompasses a diverse range of enabling technologies - from acoustics and video processing to wireless communications and power electronics".

"This partnership with SMTC will allow both firms to leverage our distinct capabilities into an operating model that is cost effective for both Alco and SMTC, while at the same time offering SMTC's customers a low cost alternative to North American manufacturing," adds Wilson Leung, a Director of Alco. "Our experience in offering our ODM and EMS services to leading Japanese consumer electronics companies puts Alco in a unique position to understand and meet the stringent requirements of SMTC's existing and potential OEM customers."

Alco will produce product for SMTC from its Chang An campus in the Dongguan region of China. Pre-production and pilot run activity is scheduled to start in late February, with first customer shipments beginning in the March timeframe. Alco will also supply plastics, cables and custom metal products to SMTC and its customers.

About SMTC

SMTC Corporation is a global provider of advanced electronic manufacturing services to the technology industry. The Company's electronics manufacturing and technology centers are located in Appleton, Wisconsin; Austin, Texas; Boston, Massachusetts; Charlotte, North Carolina; San Jose, California; Toronto, Canada; Ireland and Mexico. SMTC offers technology companies and electronics OEMs a full range of value-added services including product design, procurement, prototyping, printed circuit assembly, advanced cable and harness interconnect, high precision enclosures, system integration and test, comprehensive supply chain management, packaging, global distribution and after-sales support. SMTC supports the needs of a growing, diversified OEM customer base primarily within the networking, communications, computing and industrial markets. SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX and on The Toronto Stock Exchange under the symbol SMX. Visit the Company's website at http://www.smtc.com/ for more information.

About Alco

Alco engages mainly in the Original Design Manufacture (ODM) and Electronic Manufacturing Services (EMS) for leading Japanese consumer electronics companies. With locations in Hong Kong, Shenzhen, Chang An and Houjie, Alco offers a full range of value added services including product design, procurement, prototyping, printed circuit board assembly, advanced cable and harness interconnect, systems integration and test, supply chain management, packaging, global distribution, and after sales support. Alco is also involved in the design, manufacture and sale of consumer audio-visual products. Currently, the Group is also actively developing mid-range to high-end digital electronics products, including computer peripherals products, LCD-TVs with DVD players, and DVD+VCR Combo players/recorders.

CONTACT: SMTC Corporation, Paul Walker, 905-479-1810
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Publication:PR Newswire
Geographic Code:1CANA
Date:Feb 12, 2003
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