Automodular Corporation

Automodular Corporation

May 26, 2005 12:05 ET

Automodular Awarded Renewal Contract

TORONTO, ONTARIO--(CCNMatthews - May 26, 2005) - Automodular Corporation (TSX:AM) announces that it received today a contract renewal for the sub-assembly and sequencing business it carries out in its Whitby, Ontario facility.

In total, Automodular's 2005 contract awards total approximately $375 million new business and $125 million renewal contracts.

Automodular has announced a rights offering to raise approximately $2.25 million to support new orders, and is in discussions with a number of parties regarding $12 to $15 million in equipment financing for the related manufacturing facilities.

In addition, Automodular recently entered into an agreement to lease a new 250,000 square foot facility to expand its Canadian operations. The new facility will employ over 300 people and will begin operations in late 2006.

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