ATS Solar Group secures multi-year silicon supply agreement with Dow Corning



    TSX: ATA

    CAMBRIDGE, ON, April 20 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that its Photowatt France subsidiary has entered into a multi-year
agreement to purchase refined metallurgical-grade silicon (MgSi) from Dow
Corning.
    Under the agreement, Dow Corning is obligated to deliver, and Photowatt
is required to purchase a total of 1,700 tonnes of MgSi between now and
December 31, 2011. Deliveries under the contract begin immediately.
    Management believes the terms of the contract, including the requirement
for Photowatt to make advance payments against MgSi to be supplied, are
similar to silicon supply agreements entered into by other companies.
    "This multi-year agreement provides Photowatt France with an important
source of silicon supply from a respected industry participant that will
enable it to further implement its refined metallurgical-grade silicon
production plans," said Ron Jutras, ATS President and CEO. "We believe this
agreement is a key accomplishment that will further strengthen Photowatt
especially during this period of silicon shortage."
    This is the second major silicon agreement Photowatt has signed in the
last six months. The first, a 10-year supply agreement with Deutsche Solar AG
announced October 16, 2006, will see Photowatt purchase approximately four
million polysilicon wafers per annum beginning in the first half of calendar
2009.

    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 healthcare, computer/electronics, automotive and
consumer products. Through its solar business, ATS participates in the growing
solar energy industry. It also leverages its many years of repetitive
manufacturing experience and skills to produce, in high volume, precision
components and subassemblies and to answer the specialized repetitive
equipment manufacturing requirements of customers. ATS employs approximately
3,500 people at 25 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.

    Note to Readers

    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, management's view that the agreement that is the subject matter
of this news release (the "Contract") will provide Photowatt France with an
important source of silicon supply from a respected industry participant that
will enable it to further implement its refined metallurgical-grade silicon
production plans; and the further strengthening of Photowatt especially during
this period of silicon shortage. The risks and uncertainties that may affect
forward-looking statements include, among others; general market performance;
market performance within the solar sector; ability to secure required funding
for the solar business; performance of ATS's solar business; uncertainty
surrounding the first generation silicon product to be supplied under the
Contract, including potential inability of the supplier to meet delivery and
schedule targets; potential for unexpected manufacturing problems to be
encountered by the supplier; potential for variation in quality of silicon
supplied under the Contract; potential for the silicon product to be of less
than optimal suitability for Photowatt products; political, labour, supplier
or other disruptions in the manufacturing and supply of the silicon product by
the supplier; currency fluctuations; unforeseen problems with Photowatt
France's use of refined metallurgical silicon; the risk that desired cell
efficiencies relating to refined metallurgical grade silicon technology cannot
be achieved and/or that the market is unreceptive to lower efficiency cells
and as a result it is not an economically-viable alternative to the use of
conventional solar grade silicon; 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 selling price increases and improvements in
production efficiencies will not be obtained and/or, if they are, will not be
sufficient to offset higher silicon costs and shortages; the cost and
availability of silicon, including silicon powder and fines, and other raw
materials and certain specialized manufacturing tools and fixtures used in the
production of the Solar Group'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,
2006. 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,
ATS, Gerry Beard, Vice President and Chief Financial Officer, ATS, (519)
653-6500


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