Automodular Corporation

Automodular Corporation

September 16, 2011 14:59 ET

Automodular Announces New Letter of Intent for Sub-Assembly of Equipment

AJAX, ONTARIO--(Marketwire - Sept. 16, 2011) - Automodular Corporation ("Automodular") (TSX:AM) reports that it has entered into a non-binding letter of intent with a manufacturer to sub-assemble equipment for use in the energy sector. The parties are working towards a definitive agreement which is currently expected to be signed in the fourth quarter.

Further details concerning the contract will be provided once the definitive agreement is signed. The arrangement currently contemplates a fixed number of units to be assembled over a period of approximately one year. Automodular also expects to engage approximately 40 personnel and secure a facility in southern Ontario in order to carry out the contract. The parties are actively working to reach a definitive agreement on the basis set out in the letter of intent, though there can be no assurance that a definitive agreement will be completed on those terms.

Automodular Corporation is a supplier of sub-assembly, sequencing and transportation services to Ford's Oakville Assembly Plant. The Company has two operating facilities and employs approximately 500 people.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Specific forward-looking statements in the document include those relating to the signing and timing of the definitive agreement, expected contract duration and expected number of personnel engaged. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions, the requirement that the Company satisfy certain conditions precedent to the definitive agreement, the fact that the contract relates to non-automotive assembly and the risk factors detailed from time to time in the Company's periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at Readers are cautioned not to rely on forward-looking statements. Except as required under continuous disclosure obligations, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Automodular does not provide financial outlooks.

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