ATS Announces Termination of Silicon Supply Agreements at Photowatt France

CAMBRIDGE, ON, Sept. 28, 2011 /CNW/ - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS" or the "Company") today announced that its Photowatt France ("PWF") subsidiary has reached agreements to terminate certain of its silicon and wafer supply contracts.

As a result of the termination agreements, the Company expects that PWF will incur charges of 17.5 million Euro in the second quarter ending October 2, 2011, including asset impairment charges of 14.5 million Euro, representing previously paid deposits.  The supply of silicon and wafers represented by these agreements is not required to meet current and planned manufacturing capacities. The termination agreements will eliminate commitments over the next 6 years to purchase approximately 180 million Euro of silicon and wafers at contractual prices in excess of current spot market levels.

About ATS
ATS Automation 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 industries such as life sciences, computer/electronics, energy, transportation and consumer products. It also leverages its many years of experience and skills to fulfill the specialized automation product manufacturing requirements of customers. Through Photowatt, ATS participates in the growing solar energy industry. ATS employs approximately 2,900 people at 21 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.


SOURCE ATS Automation Tooling Systems Inc.

For further information:

Maria Perrella, Chief Financial Officer
Carl Galloway, Vice-President, Treasurer
519 653-6500


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