ATS closes $110 million rights offering

    CAMBRIDGE, ON, Aug. 16 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has completed its Rights Offering, raising gross proceeds of
$110 million.
    Under the Basic Subscription Privilege, ATS received subscriptions for
16,011,247 common shares. Under the Additional Subscription Privilege
1,678,903 common shares were purchased. The Additional Subscription Privilege
was oversubscribed and no shares were issued under the standby purchase
    "The successful closing of the rights offering completes another
important task in our strategic goal of becoming a pure automation systems
company," said Ron Jutras, ATS President and Chief Executive Officer. "The
proceeds from the rights transaction will be used to fund the business plan
for Photowatt France, while also supporting the spin out of Photowatt to ATS
shareholders. We are pleased with the support shown by ATS shareholders for
the offering and are committed to enhancing the value of our company for all
ATS shareholders through strong execution of our stated business priorities."

    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 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

    Forward Looking Statement

    This news release relates to ATS's Rights Offering and 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 use of
proceeds of the Rights Offering; ATS's strategic goal of becoming a pure
automation systems company; ATS's plan to spin out Photowatt; and enhancement
of value of ATS for shareholders. The risks and uncertainties that may affect
forward-looking statements include, among others: general market performance;
foreign currency and exchange risk; strength of the Canadian dollar and the
challenges this presents; performance of the market sectors that ATS serves;
the receipt of all necessary approvals and advance tax ruling relating to the
spin out; the state of the capital markets; 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; problems associated with the expansion of production capability and
adoption of new production processes at Photowatt France; inability of
Photowatt to fund future research and development; inability to finalize
strategic partnerships or alliances to provide for silicon supply; political,
labour or supplier disruptions in manufacturing and supply of silicon; 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: Carl Galloway, Vice President and Treasurer;
Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500

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