SMTC Expands Enclosures Division Into Mexico

    New Metal Fabrication on SMTC Mexico Campus to Address Market Demand for
    Low-cost Enclosure and Sub-systems Manufacturing

    TORONTO, March 7 /CNW/ - SMTC Corporation (Nasdaq:   SMTX) (TSX: SMX), a
global electronics manufacturing services (EMS) provider, announced today the
expansion of its Enclosure Division operations into Mexico with the addition
of a dedicated precision metal fabrication facility on its Chihuahua Mexico
    Currently SMTC Mexico (Chihuahua) is a medium to high mix, medium to high
volume facility servicing OEMs requiring low cost North American
manufacturing. Manufacturing services include assembly, testing, box build,
final product integration, and worldwide customer logistics. The new precision
metal fabrication facility in Mexico now offers low cost Enclosure Systems
manufacturing capabilities including precision sheet metal fabrication,
electromechanical assembly, system integration and test.
    "The expansion in Mexico offers our customers the advantage of
end-to-end, vertically integrated, low integration cost manufacturing. This
positions us to now include precision metal fabrication in meeting the
requirements of customers with medium to large system integration
requirements", said John Caldwell, President and CEO for SMTC. "We expect a
strong demand for this additional low cost North American capacity."
    The expansion in Mexico includes a dedicated metal fabrication operation
that will bring the SMTC Mexico campus to more than 225,000 square feet of
manufacturing capacity.
    The Company's enclosures operation in Franklin, Massachusetts will
continue to be the center of excellence and provide New Production
Introduction and volume manufacturing. The Franklin facility will also oversee
the seamless transfer of technology and production to Mexico using the SMTC
"Copy Exact" methodology. Every SMTC facility employs the same manufacturing
equipment and software systems and follows the same standardized processes.
Copy Exact helps customers reach their cost and volume targets faster.

    About SMTC Corporation: 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, and Mexico, and a partnering relationship in China,
with over 1,300 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
    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

    Note for Investors: The statements contained in this release that are not
purely historical 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, Email:

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