ATS Solar Group secures multi-year polysilicon supply contract with industry-leading WACKER Chemie AG



    TSX: ATA

    CAMBRIDGE, ON, Sept. 4 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that its Photowatt France subsidiary has entered into a multi-year
agreement to purchase high-purity polysilicon from WACKER Chemie AG.
    Under the agreement, WACKER will deliver polysilicon to support
approximately 14 megawatts of Photowatt solar production per annum. Deliveries
are expected to begin in January 2010 and continue for a nine year period. The
agreement requires advance payments that will be covered by a portion of the
proceeds raised from ATS's recent rights offering. For competitive reasons,
the terms of the contract were not released but management believes they are
similar to other long-term contracts recently secured in the solar industry.
    "This polysilicon contract is an important next step in our plan to
continue to strengthen Photowatt in advance of its spin out," said Ron Jutras,
ATS President and CEO. "The agreement significantly improves our access to
scarce polysilicon by providing us with a contracted supply from a highly
respected global supplier at attractive long-term supply prices. It also
clearly establishes an important strategic supply relationship between
Photowatt and WACKER which we intend to build upon."
    Photowatt has implemented an active silicon supply strategy to ensure it
has sufficient supply on hand, at reasonable prices, to meet its long-term
needs and support its future expansion. In support of this strategy, the
contract announced today is the fourth major long-term silicon agreement
Photowatt has signed in recent months. It previously announced two long-term
supply agreements with Deutsche Solar AG for the supply of polysilicon wafers
and a long-term supply agreement for refined metallurgical silicon with Dow
Corning. Photowatt's vertically-integrated technology and manufacturing
capability allow it to manufacture solar cells and modules using a broad range
of silicon feedstock, which it purchases based upon availability and cost.

    About WACKER

    WACKER (www.wacker.com) is a globally active chemical company
headquartered in Munich. With a wide range of state-of-the-art specialty
products, WACKER is a leader in numerous industrial sectors. Its products are
required in many high-growth end-user sectors such as photovoltaics,
electronics, pharmaceuticals and household/personal care products. The Group's
WACKER POLYSILICON business division is the world's second-largest producer of
hyperpure polycrystalline silicon for the semiconductor and photovoltaic
industries. In 2006, WACKER Group posted sales of some (euro)3.34 billion,
with approx. 80 percent being earned outside Germany. WACKER has about 14,700
employees at 22 production sites in Europe, the Americas and Asia and at some
100 sales offices worldwide. WACKER CHEMIE AG's shares (ISIN: DE000WCH8881)
are listed on the Frankfurt Stock Exchange.

    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 news 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, expected timing of deliveries under the contract that is
announced in this news release; the estimated solar power capacity to be
manufactured therefrom; planned spin out of Photowatt; and intention to build
upon Wacker relationship. The risks and uncertainties that may affect
forward-looking statements include, among others; general market performance;
the receipt of all necessary approvals and advance tax ruling relating to the
spin out; market performance within the solar sector; ability to secure
required funding for the solar business; performance of ATS's solar business;
potential inability of silicon suppliers to meet delivery and schedule
targets; potential for unexpected manufacturing problems to be encountered by
suppliers; political, labour, supplier or other disruptions in the
manufacturing and supply of the silicon products by the suppliers;
availability of additional future silicon from Wacker; currency fluctuations;
achievement of technical advances in cell efficiency; reversal of current
silicon supply arrangements, inability to finalize agreements, strategic
partnerships, or alliances to provide for R&D initiatives and/or silicon
supply and other problems that may be encountered with silicon supply sources;
potential for silicon prices to decline in the face of long-term silicon
supply arrangements; possibility that improvements in production efficiencies
will not be obtained and/or, if they are, will not be sufficient to offset
higher silicon costs and shortages and any reductions in average selling price
of solar products; the cost and availability of silicon and other raw
materials and certain specialized manufacturing tools and fixtures used in the
production of Photowatt's products; the successful expansion of production
capability and adoption of new production processes; the extent of market
demand for solar products such as those developed by the solar business; the
availability and timing of government subsidies for solar products, the
development of superior or alternative technologies to those developed by the
solar business; and other risks detailed from time to time in ATS's filings
with Canadian provincial securities regulators, including ATS's Management's
Discussion and Analysis, Consolidated Financial Statements, Annual Report and
Annual Information Form for the fiscal year ended March 31, 2007.
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: Carl Galloway, Vice President and Treasurer,
Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500


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