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.

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

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