ATS signs second long-term polysilicon wafer supply agreement with Deutsche Solar AG

    TSX: ATA

    CAMBRIDGE, ON, June 5 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that its Photowatt France subsidiary has entered into a second
contract with Deutsche Solar AG for the long-term supply of polysilicon
wafers. Deutsche Solar is one of Europe's largest wafer manufacturers and a
subsidiary of SolarWorld AG.
    Under the agreement that begins January 2010 and extends through December
2017, Deutsche Solar is obliged to deliver, and Photowatt is obliged to
accept, approximately 32 million polysilicon wafers over the term of the
agreement. Approximately three to four million polysilicon wafers are expected
to be delivered annually beginning in calendar 2010 and continuing through to
2017. Photowatt plans to process these wafers into solar cells and modules,
representing approximately 118 megawatts of solar power capacity over the term
of the agreement.
    "We are pleased that we have now secured this significant additional
long-term supply of high quality wafers from Deutsche Solar," said Ron Jutras,
ATS President and CEO. "This newest agreement with Deutsche Solar further
demonstrates our progress in advancing our long-term silicon supply strategy
and reduces our exposure to the risks of industry-wide silicon shortages."
    This contract is the second polysilicon wafer supply agreement between
Photowatt and Deutsche Solar. The first - a 10-year contract that begins in
January 2009 - was announced October 16, 2006 and provides for the supply of
approximately 40 million polysilicon wafers over the 10 year period.
Additionally, on April 20, 2007 Photowatt announced it had entered into a
multi-year contract to purchase a total of 1,700 tonnes of refined
metallurgical-grade silicon (MgSi) from Dow Corning in order to allow
Photowatt to produce MgSi-based solar cells as part of its product mix.
Shipments under this contract have now commenced and will continue until
December 31, 2011.
    Advance payments under the Deutsche Solar contracts will be applied
against the price of wafers received during the life of the commitments. The
price per wafer will be adjusted at the beginning of each calendar year based
upon an agreed formula. Management believes that these terms are reflective of
current commercial terms in the solar industry for supply contracts of similar

    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
rapidly-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. Visit the Company's
website at

    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, expected size and timing of deliveries under the Deutsche Solar
contract that is announced in this news release; Photowatt's plan to process
the wafers to be supplied and the estimated solar power capacity to be
manufactured therefrom; reduction in exposure to risks of silicon shortage;
quantities and timing of deliveries of wafers to be supplied under the first
Deutsche Solar contract; quantity and timing of deliveries under the Dow
Corning contract for metallurgical-grade silicon; and the application of
payments and adjustments to pricing under the Deutsche Solar contracts. 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; potential inability of silicon suppliers to meet
delivery and schedule targets; failure or delay on the part of the wafer
supplier in procuring the necessary silicon or establishing the necessary
capacity to produce the wafers under the contract; potential for unexpected
manufacturing problems to be encountered by the suppliers; potential for
variation in quality of silicon supplied under the contracts; in the case of
metallurgical silicon, the 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 products
by the suppliers; currency fluctuations; achievement of technical advances in
cell efficiency; 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 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, including silicon powder and fines, 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, 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,
Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500

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