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ATS's Photowatt Technologies Business Enters 10 Year Silicon Supply Agreement

ATS Automation


CAMBRIDGE, ON, Oct. 16 /CNW/ - ATS Automation Tooling Systems Inc. today announced that its solar business, Photowatt Technologies, has entered into a 10-year silicon supply contract with Deutsche Solar AG, Freiberg for the supply of solar-grade, multi-crystalline polysilicon wafers beginning in the first half of calendar 2009. Deutsche Solar is one of Europe's largest wafer manufacturers and a subsidiary of SolarWorld AG.

Under the agreement, Deutsche Solar is obliged to deliver, and Photowatt Technologies is obliged to accept, approximately four million polysilicon wafers per annum. These wafers will be processed into solar cells and modules by Photowatt and are estimated to support the manufacture of approximately 15 megawatts of solar power products per annum. Advance payments to be made under the contract will be applied against the price of silicon wafers received during the life of the commitment. The price 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 durations.

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 3,800 people at 26 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 web site at www.atsautomation.com.

This press 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, the supply of polysilicon wafers under the contract and the timing thereof; the quantity that will be purchased under the contract; the processing of wafers into solar cells and modules; the estimated power output of products produced using the supplied wafers; and the application of payments and adjustments to pricing under the contract. The risks and uncertainties that may affect forward-looking statements include, among others; general market performance; performance of ATS's solar business; reversal of current silicon supply arrangements, failure or delay on the part of the supplier in procuring the necessary silicon or establishing the necessary capacity to produce the wafers under the contract; achievement of technical advances in cell efficiency; potential for silicon prices to decline in the face of long term silicon supply arrangements; the successful expansion of Photowatt 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 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.

For further information:

Gerry Beard
Vice President and Chief Financial Officer
(519) 653-6500

Carl Galloway
Vice President and Treasurer

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