Automodular Corporation

Automodular Corporation

June 27, 2011 14:01 ET

Automodular Announces Oakville Contract Extension

AJAX, ONTARIO--(Marketwire - June 27, 2011) - Automodular Corporation ("Automodular") (TSX:AM) announces that it has signed a multi-year agreement ("MYA") with Ford Motor Company ("Ford") for an extension of services at its Oakville operations. Automodular sub-assembles, sequences and delivers engines, suspension and instrument panel modules for the Ford Edge, Ford Flex, Lincoln MKX and Lincoln MKT being produced in Ford's flexible assembly complex in Oakville, Ontario. This MYA will end in June, 2014.

The MYA provides for certain price reductions over the course of the agreement some of which are retroactive to January 1, 2011. The impact on previously reported first quarter 2011 financial results is a reduction in revenues and pre-tax earnings of $0.6 million and a reduction in net earnings of $0.4 million.

Automodular 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 are based on currently available information, business plans and projections about future events and may involve a number of risks and uncertainties. Specific forward-looking information in this release relates to the extension of the MYA to June, 2014. Among the factors that could cause actual results to differ materially are unexpected changes in Ford's business plans or to the automotive industry. Readers are cautioned not to unduly rely on forward-looking statements which speak only as of the date they are made. Except as required under continuous disclosure obligations, Automodular undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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