Nortech Systems Expands Aerospace Systems Division; Manufacturing Facility Purchased from Telex Communications
MINNEAPOLIS--Jan. 2, 2006--To support the continued strong growth of its Aerospace Systems division, electronics manufacturing services provider Nortech Systems, Inc. (Nasdaq: NSYS) has entered into an agreement to purchase a 140,000-square-foot manufacturing facility in Blue Earth, Minn., from Telex Communications, Inc. The sale is scheduled to close on June 30, 2006; terms were not announced.
The new manufacturing capacity will be used to supplement Nortech Systems' existing Aerospace Systems operations in Fairmont, Minn. (Blue Earth is located approximately 20 miles east of Fairmont.)
"This new building gives us much-needed space to better capitalize on growth opportunities and improve our operating leverage," says Mike Degen, President and Chief Executive Officer of Nortech Systems.
"We explored several expansion options before this building became available," adds Degen. "Its proximity and existing use for electronics manufacturing were definite advantages." This new capacity will allow the Aerospace Systems division to increase its production in southern Minnesota, where additional hiring is underway.
Telex Communications, with local offices in Burnsville, Minn., is a worldwide leader in the design, manufacture and marketing of audio and communications systems to commercial, professional and industrial customers. As part of the purchase agreement, Telex has the option to lease up to 50,000 square feet of the Blue Earth facility through the first quarter of 2007 for its printed circuit board assembly operations.
The Aerospace Systems division of Nortech Systems specializes in custom-designed wire harnesses and cable assemblies, including rugged high-speed data communications cables, flat molded, fiber optics and higher-level builds for the defense industry and other demanding applications. Products are engineered to withstand severe environmental conditions including extreme heat and cold, salt spray, water immersion, chemical and abrasion resistance, and electromagnetic and radio frequency interference. (More information about Aerospace Systems is available by visiting their web site: www.nortechsys.com/aerospace.)
About Nortech Systems
Nortech Systems Incorporated (www.nortechsys.com), based in Wayzata, Minn., is a full-service EMS provider of wire and cable assemblies, printed circuit board assemblies, higher-level assemblies and box builds for a wide range of industries. Markets served include medical, automotive, defense, computer, commercial, recreational, government and consumer. The company has manufacturing facilities in Baxter, Bemidji, Fairmont and Merrifield, Minnesota; Augusta, Wisconsin; and Monterrey, Mexico. Nortech Systems is traded on the Nasdaq Stock Market under the symbol NSYS.
This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. While this release is based on management's best judgment and current expectations, actual results may differ and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: volatility in market conditions which may affect market supply and demand of the company's products; increased competition; changes in the reliability and efficiency of operating facilities or those of third parties; risks related to availability of labor; commodity and energy cost instability; general economic, financial and business conditions that could affect the company's financial condition and results of operations; as well as risk factors listed from time to time in the company's filings with the SEC.
The factors identified above are believed to be important factors (but not necessarily all of the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by the company. Unpredictable or unknown factors not discussed herein could also have material adverse effects on forward-looking statements. All forward-looking statements included in this press release are expressly qualified in their entirety by the forgoing cautionary statements. The company undertakes no obligations to update publicly any forward-looking statement (or its associated cautionary language) whether as a result of new information or future events.
Contacts
Brookside Communications Group
Warren Djerf, 952-920-3908
warren@brookcomm.net
