Silicon Forest Electronics and ACW Technology
Partnership

USA - Strategic Partnership February 2008

Electronics Manufacturing Services companies ACW Technology Ltd (ACW), with factories in the UK and China, and Silicon Forest Electronics Inc. (SFE) with its factory in the US, have formed a Strategic Partnership to create wider global reach. Both SFE and ACW have improved their offerings by adding a new value stream to their individual business models. In the US, SFE's customers will have access to the benefits of ACW's low-cost Chinese purchasing, manufacturing and assembly services. ACW's customers will have access to the benefits of a specific manufacturing, repair and distribution point in the US. Our combined customer base will benefit from access to global manufacturing and supply from the partnership's factories in the UK, US and China.

The benefits to SFE's customers are:

· A seamless transfer to low cost labour product supply
· Low cost materials from ACW's Asian global procurement service
· Engineering and logistical support with financial and administration interface in the US
· Interface with native English speakers with US culture
· Savings on expensive and timely overseas support staff
· Low risk route into Chinese manufacturing
· US back up from Silicon Forest Electronics existing US prototype and full production plant
· US ramp up and ramp down capability at SFE
· Local US configuration and test capability at SFE
· 100% Western ownership, management and control of Chinese factory
· Comparatively low IP risk
· China offers faster ramp up capability if required
· Products supplied will meet SFE's high quality standards

The benefits to ACW's customers are:

· Professional local manufacturer for ACW's customers requiring US supply
· Single point of contact through ACW UK for all supplies
· Greater purchasing power through combined regional spend
· Easy transfer of existing product information from ACW to US partner through established path
· Products supplied will meet ACW's high quality standards

ACW is the largest privately owned electronics contract manufacturer in the UK. It manufactures and ships highly complex products on a turnkey basis around the world for its customers. Commercial, industrial, aerospace and defence products are in its portfolio. Compared to its peers, ACW has greater financial strength and a more extensive range of plant, equipment and management information systems. It was founded in 1989 and now occupies 150,000 sq ft in two factories in the UK (Southampton and South Wales) and another in Southern China with 400 staff and sales of GB£45m (US$90m).

SFE is the premier electronics contract manufacturer located in the Pacific Northwest (Vancouver, Washington State, USA) offering rapid production of lower volume, high complexity PCB products and assemblies. SFE's distinction in the market is its level of quality and service delivered to its large customer base. SFE was founded in 1999 and has expanded to 45,000 sq ft, 110 employees and sales of US$20m (GB£10m). Silicon Forest currently serves aerospace, military, medical, industrial and instrumentation sectors.

· Silicon Forest Home Page
· ACW Technology Home Page