ATS Automation Tooling Systems Inc. comments on impact of Delphi Chapter 11 filing


CAMBRIDGE, ON, Oct. 11 /CNW/ - ATS Automation Tooling Systems Inc. today
commented on the impact of the October 8, 2005 Chapter 11 business
reorganization filing of Delphi Corporation and certain of its U.S.
subsidiaries under the U.S. Bankruptcy Code.
The Company estimates that its current exposure to the various Delphi
divisions which are subject to the Chapter 11 filing, comprised of accounts
receivable and contracts in progress, is in the range of US $6 million to
$8 million, virtually all of which is with the Company's Automation Systems
Group.
Delphi has historically been, and is expected to continue to be, an
important customer of ATS. The Company estimates that it has approximately
US $10 million in current Order Backlog with the various Delphi divisions
which are subject to the bankruptcy filing and ATS continues to work closely
and actively with Delphi as it manages its way through its re-organization
process.

About ATS
ATS Automation Tooling Systems Inc. (www.atsautomation.com) is the
industry's leading designer and producer of turn-key automated manufacturing
and test systems, which are used primarily by multinational corporations
operating in a variety of industries including: automotive,
computer/electronics, healthcare, and consumer products. ATS is also an
emerging leader in the rapidly growing market for solar energy cells and
modules. The Company also makes precision components and subassemblies using
its own custom-built manufacturing systems, process knowledge and automation
technology. ATS employs approximately 4,200 people at 26 manufacturing
facilities in Canada, the United States, Europe and Asia-Pacific. The
Company's shares are traded on The Toronto Stock Exchange under the symbol
ATA.

Certain forward-looking statements are made in this news release,
including statements regarding possible future results and business. Investors
are cautioned that such forward-looking statements involve risks and
uncertainties. The Company's results could differ materially from those
currently anticipated due to a number of factors including, but not limited
to, the risks and uncertainties contained in the Company's fiscal 2005 MD&A
and annual report and other risks detailed from time to time in ATS's periodic
reports filed with Canadian regulatory authorities.

%SEDAR: 00002017E

For further information: Carl Galloway, VP Treasurer; Gerry Beard, VP,
CFO, (519) 653-6500

All Topics