ATS Solar Group Secures Multi-year Silicon Supply Agreement with Dow Corning

CAMBRIDGE, ON, April 20 /CNW/ - ATS Automation Tooling Systems Inc. today announced that its Photowatt France subsidiary has entered into a multi-year agreement to purchase refined metallurgical-grade silicon (MgSi) from Dow Corning.

Under the agreement, Dow Corning is obligated to deliver, and Photowatt is required to purchase a total of 1,700 tonnes of MgSi between now and December 31, 2011. Deliveries under the contract begin immediately.

Management believes the terms of the contract, including the requirement for Photowatt to make advance payments against MgSi to be supplied, are similar to silicon supply agreements entered into by other companies.

‘‘This multi-year agreement provides Photowatt France with an important source of silicon supply from a respected industry participant that will enable it to further implement its refined metallurgical-grade silicon production plans,’‘ said Ron Jutras, ATS President and CEO. ‘‘We believe this agreement is a key accomplishment that will further strengthen Photowatt especially during this period of silicon shortage.’‘

This is the second major silicon agreement Photowatt has signed in the last six months. The first, a 10-year supply agreement with Deutsche Solar AG announced October 16, 2006, will see Photowatt purchase approximately four million polysilicon wafers per annum beginning in the first half of calendar 2009.

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 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 3,500 people at 25 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.

Note to Readers
This news 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, management's view that the agreement that is the subject matter of this news release (the ‘‘Contract’‘) will provide Photowatt France with an important source of silicon supply from a respected industry participant that will enable it to further implement its refined metallurgical-grade silicon production plans; and the further strengthening of Photowatt especially during this period of silicon shortage. The risks and uncertainties that may affect forward-looking statements include, among others; general market performance; market performance within the solar sector; ability to secure required funding for the solar business; performance of ATS's solar business; uncertainty surrounding the first generation silicon product to be supplied under the Contract, including potential inability of the supplier to meet delivery and schedule targets; potential for unexpected manufacturing problems to be encountered by the supplier; potential for variation in quality of silicon supplied under the Contract; potential for the silicon product to be of less than optimal suitability for Photowatt products; political, labour, supplier or other disruptions in the manufacturing and supply of the silicon product by the supplier; currency fluctuations; unforeseen problems with Photowatt France's use of refined metallurgical silicon; the risk that desired cell efficiencies relating to refined metallurgical grade silicon technology cannot be achieved 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; reversal of current silicon supply arrangements, inability to finalize agreements, strategic partnerships, or alliances to provide for R&D initiatives and/or 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; 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, including silicon powder and fines, and other raw materials and certain specialized manufacturing tools and fixtures used in the production of the Solar Group's 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 and timing 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, ATS
Gerry Beard, Vice President and Chief Financial Officer, ATS
(519) 653-6500