ATS Announces Strategic Consolidation of PCG Plastics Capabilities

CAMBRIDGE, ON, Oct. 19 /CNW/ - ATS Automation Tooling Systems Inc. today announced it will consolidate its Bowmanville, Ontario precision plastic injection moulding capabilities into existing Precision Components Group (PCG) facilities in Shanghai, China and Cambridge, Ontario.

ATS's Micro Precision Plastics (MPP) division specializes in micro precision plastic injection moulding and currently employs 88 people at its 34,000 sq. ft. leased facilities in Bowmanville, Ontario. MPP's revenues were approximately $12 million in fiscal 2006.

This phased-in consolidation of the MPP operation is expected to be complete by the first quarter of fiscal 2008. Management expects one-time costs associated with consolidating this business, including employee, relocation and other expenses, will reduce the Company's operating income by approximately $1.8 million.

'The transfer of this business is another important step in streamlining and strengthening PCG operations and focusing our capabilities where they can add the most value for our customers and shareholders,' said Bruce Seeley, Vice President, Precision Components Group. 'In North America, this consolidation reduces our cost base while intensifying our injection moulding capabilities for customers who require a one stop, fully-integrated solution.

For our China operations, it adds additional critical mass and a more extensive range of capabilities to attract new multinational customers in this rapidly expanding market for manufacturing.'

About ATS
ATS Automation Tooling Systems Inc. provides innovative, custom designed, built and installed manufacturing solutions to many of the world's most successful companies. Founded in 1978, ATS uses its industry-leading knowledge and global capabilities to serve the sophisticated automation systems' needs of multinational customers in healthcare, computer/electronics, automotive and consumer products. Through its solar business, ATS participates in the rapidly-growing solar energy industry. It also leverages its many years of
repetitive manufacturing experience and skills to produce, in high volume, precision components and subassemblies and to answer the specialized repetitive equipment manufacturing requirements of customers. ATS employs approximately 3,800 people at 26 manufacturing facilities in Canada, the United States, Europe, southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.

Note to Readers
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ('forward-looking statements'). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of ATS, or developments in ATS's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. ATS cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among
other things, ATS's intention to consolidate its Bowmanville operations into existing facilities; timing of completion of the consolidation; expected reduction in operating income due to one-time costs associated with the consolidation; and benefits to be derived from the consolidation. The risks and uncertainties that may affect forward-looking statements include, among others, general market performance; demand for the products manufactured by
this business; delays due to customer requests for additional product prior to the consolidation, potential delays and costs related to equipment relocation and installation, or delays due to other circumstances; lack of increased demand in response to the consolidation; potential loss of customers, unanticipated increases in the one-time costs, including those related to employee severances and relocations; labour disruptions; and other risks detailed from time to time in ATS's filings with Canadian provincial securities regulators, including ATS's Annual Report and Annual Information Form for the fiscal year ended March 31, 2006. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and ATS does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

For further information: Carl Galloway, Vice President and Treasurer, Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500.