ATS's Photowatt Technologies Begins IPO Marketing

CAMBRIDGE, ON, Feb. 28 /CNW/ - ATS Automation Tooling Systems Inc. today announced that its wholly-owned subsidiary, Photowatt Technologies Inc., has commenced the marketing of an initial public offering of its common shares. Photowatt Technologies is offering 10,937,500 primary shares of common stock at a preliminary indicative offering price range of US $15.00 to $17.00 per share.

BMO Capital Markets and UBS Investment Bank are acting as joint book-running managers for the initial public offering. The underwriters have an over-allotment option to purchase up to 1,640,625 additional primary shares of common stock from Photowatt Technologies at the public offering price. Other syndicate members in Canada include GMP Securities, Scotia Capital and Sprott Securities and in the United States, Cowen and Company, GMP Securities and Sprott Securities.

The offering of these securities is made only by means of a prospectus, copies of which may be obtained from BMO Capital Markets Distribution Centre, Attention: Des Raposo, 1 First Canadian Place, B2 Level, Toronto, Ontario, M5X 1H3 (in Canada), and UBS Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York, NY, 10171-0026 (in the United States).

A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. A preliminary prospectus has also been filed with Canadian securities regulators relating to the initial public offering of Photowatt Technologies' common shares. These documents are available at www.sec.gov and www.sedar.com.

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.

About Photowatt Technologies Inc.
Photowatt Technologies is an integrated designer, manufacturer, marketer and seller of solar modules and installation kits and provides solar power system design and other value-added services to its customers. Today, Photowatt operates an integrated manufacturing facility in Lyon, France, a module assembly operation in Albuquerque, New Mexico, and has a Spheral Solar(TM) development facility in Cambridge, Ontario. Its products are marketed under the Photowatt and Matrix brand names.

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.

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 a preliminary indicative offering price. The risks and uncertainties that may affect forward-looking statements include, among others; general market performance; market performance within the solar sector; delays in or abandonment of pursuit of an initial public offering for Photowatt Technologies Inc. due to a change in market conditions, the availability of an alternative transaction, or due to any other reason, including any of the risk factors set out herein; performance of ATS's solar business; Photowatt, Clean Venture 21 Corporation and Fujipream Corporation not reaching a definitive agreement on commercially reasonable terms, the failure to obtain any approvals required as a precondition to entering into such a definitive agreement, risks involved in successfully developing and commercializing sphere based solar technology on a cost-effective basis, including whether or not technical solutions exist, are available, can be discovered, and are economically feasible, and potential delays in finding technical 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 Spheral Solar technology and/or 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; equipment, labour or other issues that may arise with respect to the Spheral Solar technology being used in conversion of silicon for Photowatt International S.A.S.; reversal of current silicon supply arrangements, inability to finalize agreements, 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, including silicon powder and fines, 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.