ATS Announces Updated Photowatt Technologies' Filings

CAMBRIDGE, ON, Oct. 17 /CNW/ - ATS Automation Tooling Systems Inc. today announced that its subsidiary Photowatt Technologies Inc., has filed an amended registration statement with the United States Securities and Exchange Commission and an amended and restated preliminary prospectus with Canadian securities regulators relating to the initial public offering of Photowatt Technologies' common shares.

ATS will transfer its solar business to Photowatt Technologies Inc. upon the successful completion of this offering. BMO Capital Markets and UBS Investment Bank are joint book-running managers for the initial public offering.

The amended registration statement has been filed but is not yet effective. The amended and restated preliminary prospectus has also been filed but has not yet become final for the purposes of a distribution to the public in Canada. Consequently, these securities may not be sold in the United States or in any province or territory of Canada nor may offers to buy be accepted in the United States or Canada prior to the time the amended registration statement becomes effective in the United States and a receipt for the final prospectus or other authorization is obtained from Canadian provincial and territorial securities commissions. 

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities or any acceptance of an offer to buy these securities in any state, province or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to their registration or qualification under the securities laws of any such state, province or jurisdiction.

When available, copies of the U.S. preliminary prospectus and the Canadian amended and restated preliminary prospectus may be obtained from BMO Capital Markets Distribution Centre, Attention: Des Raposo, 1 First Canadian Place, B2 Level, Toronto, Ontario, M5X 1H3 or from UBS Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York, NY, 10171-0026.

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, an initial public offering by Photowatt Technologies Inc. and its possible success; and the transfer by ATS of its solar business to Photowatt Technologies Inc. The risks and uncertainties that may affect forward-looking statements include, among others; general market performance; delays in or abandonment of pursuit of an initial public offering for Photowatt Technologies Inc. due to a change in market conditions or the availability of an alternative transaction; performance of ATS's solar business; ATS's ability to overcome process challenges currently facing Spheral Solar technology ('SSP') and any new issues that may arise, and whether or not process solutions exist, are available, or can be discovered, and potential delays in finding process solutions; problems with the equipment used in the optical fused powder ('OFP') process; unforeseen problems with Photowatt France's use of OFP silicon produced by the SSP technology and/or metallurgical silicon; the risk that efficiencies relating to metallurgical grade silicon technology cannot be found and/or that the market is unreceptive to lower efficiency cells and as a result it is not an economically viable alternative to the use of conventional solar grade silicon; equipment, labour or other issues that may arise with respect to the SSP technology being used in conversion of silicon for Photowatt International S.A.S.; reversal of current silicon supply arrangements, inability to finalize strategic partnerships or alliances to provide for silicon supply and other problems that may be encountered with silicon supply sources; potential for silicon prices to decline in the face of long term silicon supply arrangements; ability to achieve lower silicon usage relative to conventional solar technology; possibility that selling price increases and improvements in production efficiencies will not be obtained and/or, if they are, will not be sufficient to offset higher silicon costs and shortages; the cost and availability of silicon and other raw materials and certain specialized manufacturing tools and fixtures used in the production of the solar business' products; the successful expansion of production capability and adoption of new production processes; the extent of market demand for solar products such as those developed by the solar business; the availability of government subsidies for solar products, the development of superior or alternative technologies to those developed by the solar business; and other risks detailed from time to time in ATS's filings with Canadian provincial securities regulators, including ATS's Management's Discussion and Analysis, Consolidated Financial Statements, 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.