ATS Reports Third Quarter Results and Performance Improvement Initiatives

Note: Truncated Release

ATS Automation Tooling Systems Inc. today reported its financial results for the three and nine months ended December 31, 2007 - as well as a number of initiatives to restore profitability, reduce costs and improve operational effectiveness in fiscal 2009.

     These initiatives are as follows:

• Strengthen leadership;
• Fix underperforming divisions and programs;
• Redefine approach to market;
• Revise business processes;
• Realize non-strategic assets.

'Our objective is to improve profitability through fiscal 2009 and then focus on growth,' said Anthony Caputo, ATS Chief Executive Officer. 'Specific actions to improve operational effectiveness will likely impact results negatively in the next several quarters. We expect significant recurring benefits as a result of these initiatives.'

Major activities that have been completed to date include:

• Recruited ATS CFO, Photowatt CFO, VP Organization Effectiveness, ASG USA VP & GM, and appointed ASG Canada SVP;
• Authorized euro 20 million for Photowatt capacity expansion and cost improvements;
• Implemented corporate wide bid review process;
• Implemented monthly, executive level, division and program reviews;
• Sold shares of Canadian Solar Inc. for a gain of $32 million;
• Strengthened balance sheet - no net debt at period end.

The Company also substantially wrote-down PCG by taking $24 million of non-cash charges in the quarter, including $19.1 million of property, plant and equipment impairment charges and $4.9 million of provisions against working capital assets.

Automation Systems Group (ASG) Results

• Period end ASG Order Backlog increased 26% to $211 million from $167 million a year ago;
• New ASG Order Bookings for the third quarter increased 6% to $115 million compared to $109 million a year ago;
• New ASG Order Bookings during the first six weeks of the fourth quarter were $48 million.

ASG's revenues increased 9% in the third quarter compared to a year ago on high opening Order Backlog. Period-end Order Backlog supports continued revenue growth. Operating results showed improvements in North America; however, these improvements were offset by weak performance in Europe and in Asia.

Photowatt Results

• Total megawatts (MWs) sold at Photowatt France increased to 11.6 MWs from 8.2 MWs in the third quarter of fiscal 2007 - with MgSi products accounting for 55% of revenue.
• MgSi module prices increased 4% from the second quarter of fiscal 2008 and were sold at a 0% to 10% discount to polysilicon modules.
• Average cell efficiencies improved in the third quarter to just over 13% for MgSi cells and just over 15% for polysilicon cells.

Photowatt France made good progress in the third quarter with its MgSi product strategy. The goal is to return Photowatt to acceptable levels of profitability during fiscal 2009 through focus on increasing cell efficiencies, scrap rate reduction, the simplification and improvement of processes using automation know-how, and the elimination of unnecessary expenses. A measured capital expansion of the existing facility has been approved to further improve productivity and efficiency and to balance capacity. Included in Photowatt France's third quarter results are severance costs of $0.6 million and a $4.2 million provision related to a customer dispute.

The timing of Photowatt France becoming a standalone company will depend upon successful performance improvements and market conditions.

Quarterly Conference Call
ATS's quarterly conference call begins at 10 am eastern today and can be accessed over the Internet at www.atsautomation.com or on the phone at 416 644 3420.

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 industries such as healthcare, computer/electronics, automotive and consumer products. It also leverages its many years of repetitive manufacturing experience and skills to fulfill the specialized repetitive equipment manufacturing requirements of customers. Through its solar business, ATS participates in the growing solar energy industry and through its precision components business it produces, in high volume, precision components and subassemblies. ATS employs approximately 3,600 people at 24 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.