SMTC Announces Strategic Relationship with Mediatrix



    SMTC Selected to Provide Full Product Manufacturing for Advanced VoIP
    Access Devices and Enterprise Gateways

    TORONTO, March 31 /CNW/ - SMTC Corporation (Nasdaq:   SMTX, TSX: SMX)
("SMTC"), a global electronics manufacturing services provider, announced
today a new strategic outsourcing relationship with Mediatrix Telecom - a
division of Media5 Corporation.
    SMTC began manufacturing activities in the fourth quarter of 2007 for
Mediatrix Telecom, a provider of award winning advanced Voice over Internet
Protocol (VoIP) access devices and gateways for the enterprise, SOHO, and IP
markets. SMTC will provide full product manufacturing for the company's
complete line of VoIP access devices and gateways. New customer introduction
activities will continue through the first quarter of 2008 with volume
production being supported out of the SMTC Mexico (Chihuahua) facility.
    "SMTC was selected as our primary EMS provider after an in-depth
assessment of various contract manufacturers worldwide," said Serge Beaudoin,
President and CEO, Mediatrix Telecom. "For the last 10 years, Mediatrix has
positioned itself as an industry innovator in the VoIP marketplace. SMTC
clearly demonstrates a comprehensive understanding of our market, our business
requirements and the unique challenges and opportunities ahead."
    "SMTC was very responsive to our particular demands and needs. They
represent the best EMS for our growing product portfolio," said Denis Paradis,
Director of Operations, Mediatrix Telecom.
    Mediatrix products target all segments of the Telecom/IT marketplace and
are distributed through its extensive network of OEM partners, Carriers and
Service Providers, System Integrators, Stocking Distributors and Value-Added
Resellers.
    "We're delighted to welcome Mediatrix to SMTC," said John Caldwell,
President and Chief Executive Officer, SMTC Corporation. "SMTC applies a
partnership approach that delivers tangible, bottom line benefits through
committing expertise and resources towards customer goals. We look forward to
a strong and collaborative relationship with Mediatrix."

    About SMTC: SMTC Corporation, founded in 1985, is a mid-size provider of
end-to-end electronics manufacturing services (EMS) including PCBA production,
systems integration and comprehensive testing services, enclosure fabrication,
as well as product design, sustaining engineering and supply chain management
services. SMTC facilities span a broad footprint in the United States, Canada,
Mexico, and China, with over 1300 full-time employees. SMTC services extend
over the entire electronic product life cycle from the development and
introduction of new products through to the growth, maturity and end-of-life
phases. SMTC offers fully integrated contract manufacturing services with a
distinctive approach to global original equipment manufacturers (OEMs) and
emerging technology companies primarily within industrial, computing and
communication market segments.
    SMTC is a public company incorporated in Delaware with its shares traded
on the Nasdaq National Market System under the symbol SMTX and on the Toronto
Stock Exchange under the symbol SMX. For further information on SMTC
Corporation, please visit our website at www.smtc.com (http://www.smtc.com).

    About Mediatrix Telecom: Mediatrix develops and markets advanced VoIP
access devices, gateways, routers, and value-added software enhancements for
the enterprise, SOHO, and residential markets. Its products provide an ideal
migration path for end users wishing to protect their current CPE investment
(analog/digital phones, fax machines, PBX and Key Systems) while migrating to
a converged IP network. Mediatrix products and solutions are widely
interoperable and have received commercial endorsement from some of the
world's leading manufacturers of telecommunications equipment as well as from
large telecommunication carriers. Mediatrix is a wholly owned division of
Media5 Corporation, a high technology holding company based in the Montreal
area, in Canada. Media5 Corporation also owns M5T, a software provider focused
on delivering the latest in SIP software technologies and security solutions
to companies developing applications for real-time multimedia communications
over IP. Mediatrix has corporate offices in the Sherbrooke area, in Canada and
regional offices in the United States, Europe, Latin America and Asia. For
more information, please visit www.mediatrix.com.

    Note for Investors: The statements contained in this release that are not
purely historical, including our expectations regarding continued revenue and
earnings growth in 2007, are forward-looking statements which involve risk and
uncertainties that could cause actual results to differ materially from those
expressed in the forward-looking statements. These statements may be
identified by their use of forward-looking terminology such as "believes",
"expect", "may", "should", "would", "will", "intends", "plans", "estimates",
"anticipates" and similar words, and include, but are not limited to,
statements regarding the expectations, intentions or strategies of SMTC
Corporation. For these statements, we claim the protection of the safe harbor
for forward-looking statements provisions contained in the Private Securities
Litigation Reform Act of 1995. Risks and uncertainties that may cause future
results to differ from forward-looking statements include the challenges of
managing quickly expanding operations and integrating acquired companies,
fluctuations in demand for customers' products and changes in customers'
product sources, competition in the EMS industry, component shortages, and
others discussed in the Company's most recent filings with securities
regulators in the United States and Canada. The forward-looking statements
contained in this release are made as of the date hereof and the Company
assumes no obligation to update the forward-looking statements, or to update
the reasons why actual results could differ materially from those projected in
the forward-looking statements.





For further information:

For further information: Jane Todd, Senior Vice President, Finance and
Chief Financial Officer, (905) 413-1300, jane.todd@smtc.com

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SMTC CORPORATION

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