ATS responds to ISS recommendation



    CAMBRIDGE, ON, Sept. 10 /CNW/ - ATS Automation Tooling Systems Inc. today
issued the following statement in response to a recommendation issued by
Institutional Shareholder Services Canada Corp. ("ISS") regarding the election
of directors at the company's upcoming annual general meeting:
    "We disagree with the conclusions ISS has reached in evaluating the
incumbent ATS directors and the dissident slate," said Larry Tapp, Chairman of
the Board of ATS.
    "In its report, ISS appears to have discounted the very real achievements
ATS has made over the past two years, which we believe will be reflected in
the company's financial performance and market value in the near term. As
recently as last month, ATS shareholders, including the dissidents, showed
their confidence in the current Board and management by investing $110 million
in ATS through an oversubscribed rights offering."
    "The dissidents fail to provide a new vision for the future. Moreover, a
wholesale change of the Board at this time will set back the company's value
creation plan. It will delay the sale of the Precision Components Group. It
will delay the spin out of the Photowatt solar business. And it will delay our
objective of becoming a pure play automation company."
    "Supporting the re-election of the ATS Board will enable the company to
continue advancing its business plan and to continue to expeditiously create
and deliver value to shareholders," said Mr. Tapp.
    The Board of Directors urges shareholders to stop the unwarranted and
counter-productive exercise initiated by two hedge funds - Goodwood Inc. and
Mason Capital Management, LLC - and support ATS's value creation plan by
discarding any dissident proxies and vote FOR the reelection of ATS's current
directors using the management form of proxy. To ensure your vote counts,
shareholders should submit their proxy using one of the methods outlined on
the Management proxy form. The proxy bearing the latest date will be the one
counted. Proxies must be returned no later than September 11th at 10:00 am
Toronto (Eastern Standard) time.
    A copy of ATS's current Annual Report and Management Information Circular
for the September 13, 2007 meeting can be found on SEDAR at www.sedar.com, and
at ATS's website at www.atsautomation.com. Requests for a hard copy of the
Annual Report or Management Information Circular can also be made to
Georgeson. For more information as well as instructions on how to vote your
proxy, call Georgeson, ATS's proxy solicitor toll free at 1-888-605-7636.

    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 industries such as healthcare,
computer/electronics, automotive and consumer products. It also leverages its
many years of repetitive manufacturing experience and skills to fulfill the
specialized repetitive equipment manufacturing requirements of customers.
    Through its Photowatt solar business, ATS participates in the growing
solar energy industry and through its precision components business it
produces, in high volume, precision components and subassemblies. ATS employs
approximately 3,500 people at 24 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.

    Forward Looking Statement

    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: the impact of past achievements on future financial performance
and market value; the impact of the election of the dissident nominees to
ATS's board of directors on implementation of ATS's value creation strategy;
and the impact of the re-election of the ATS Board on ATS's ability to advance
its business plan and to create value for shareholders. The risks and
uncertainties that may affect forward-looking statements include, among
others: general market performance and restructuring within the North American
automotive market; the receipt of all necessary approvals and advance tax
ruling relating to the Spin Out; the state of the capital markets; foreign
currency and exchange risk; strength of the Canadian dollar; performance of
the market sectors that ATS serves; that some or all of the trends towards
automation that ATS believes are attractive dissipate or do not result in
increased demand for automation; risks associated with operating and servicing
customers in a foreign country; that multinational companies withdraw from
global manufacturing for business, political, economic or other reasons;
unforeseen problems with the implementation of the ASG strategic initiatives
or failure of those measures to bring about improved performance at ASG; the
success of ongoing operational improvements at ASG; problems associated with
the expansion of production capability and adoption of new production
processes at Photowatt; managing the impact of supply shortages and higher
prices for polysilicon; Photowatt's ability to improve efficiencies of its
solar modules produced using lower grade polysilicon or refined metallurgical
silicon; Photowatt's ability to secure additional long-term polysilicon supply
contracts; the reduction in government incentives in Germany and its effect on
Photowatt; inability to advance collaborative development arrangements focused
on increasing power efficiencies of solar cells; political, labour or supplier
disruptions in manufacturing and supply of silicon; the ability of ATS to exit
the remaining PCG operations; and other risks detailed from time to time in
ATS's filings with Canadian provincial securities regulators. 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.

    %SEDAR: 00002017E




For further information:

For further information: Investors: Carl Galloway, Vice President and
Treasurer or Gerry Beard, Vice President and Chief Financial Officer, (519)
653-6500; Media: Josh Pekarsky, Longview Communications, (604) 694-6030; Alan
Bayless, Longview Communications, (604) 694-6035


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890