TES boosts European operations with EUR 2M investment in French manufacturing plant

Langon-sur-Vilaine -- November 13, 2006 - TES, the global electronics design and manufacturing services company, announces today that it has completed a EUR 2 million investment in its manufacturing plant in Langon, France. TES has invested the funds in:

• A dedicated NPI (New Product Introduction) capability, facilitating the transfer from design to manufacturing, and ensuring full cohesion through all parts of the process
• an upgrade to enable production of both RoHS and non-RoHS (restriction of hazardous substances) products
• an enlargement and upgrade of the clean room facilities to increase capacity
• improvements in ESD (electrostatic discharge) controls
• a manufacturing restructure into cells to produce efficiency

The upgrade has increased TES’ capacity to serve its growing number of local and global clients by 60 per cent with particular improvements in the chip-onboard and full system assembly, repair and logistics areas. This investment has also further enhanced TES’ ability to deliver on its innovative CDM (Custom Design and Manufacture) model; its cradle-to-grave approach to project management – from concept, through design, new product introduction to the manufacturing of the finished product.

The TES move bucks current trends in manufacturing services for the electronics industry, as it is investing in CDM at a time when competitors have folded or sold out their operations in France. “TES is committed to developing its operation in France for good business reasons,” said Nick Walker, Senior VP Sales and Marketing at TES. “The plant is efficient and will undergo continuous upgrade. The next stage will be to add a conformal coating capability to Langon, which will support the Medical, Industrial and Aerospace business at the facility.

We have an excellent team of management, production and administrative personnel as well as a pool of technology talent locally.”

Two years after being almost totally dependent on the Thales customer base, TES has succeeded in significantly expanding its client base at the Langon plant. “Today, more than half our workload comes from new business, as well as maintaining the existing customer base. We have every reason to suppose this trend will continue,” said D. Vidya, Senior Vice President Operations at TES. The expenditure on the Langon plant complements its recently announced acquisition of a factory in Penang. The two investments will enhance TES’ delivery of innovative customer design and manufacturing (CDM) to OEMs, technology and service industries, worldwide.

“From the outset, TES made a commitment to grow its capability in France in parallel to growing its global footprint. The recent acquisition in Penang coupled with ongoing investment in France re-enforces that commitment,” added Walker.

About TES

TES Electronic Solutions is a global electronics services company with a focus on innovative custom solutions for a wide variety of technology and services industries. TES solutions include integrated circuits, software, hardware and systems. The company has delivered solutions to blue-chip companies worldwide from its 17 design and manufacturing locations.

TES's services cover all phases of the product life-cycle including new product introduction. The company has the know-how and resources to offer consulting and IP licensing, as well as to design and manufacture on a turnkey or other basis. Its customers also benefit from a truly global operation where the relationship is managed locally while design and manufacturing work is carried out in the most appropriate TES location worldwide.

TES's Custom Design and Manufacturing (CDM) solutions provide customers with systems or sub-systems that improve their existing operations or enable them to exploit a market opportunity in the fastest possible time.

Headquartered in Langon-sur-Vilaine in north western France, the company employs 900, of whom 500 are design engineers. It has 15 design centers and project offices located in Silicon Valley (US), Edinburgh (UK), Paris, Rennes, Grenoble, Nice (France), Stuttgart, Dusseldorf, Hamburg, Berlin, Nuremburg, Munich (Germany), Bangalore (India) and Tokyo (Japan). Its two factories are in Rennes (France) and Penang (Malaysia).