Spokane,
WA— May 14, 2007 -- Key Tronic Corporation (Nasdaq: KTCC), a provider
of electronic manufacturing services (EMS), today announced that it closed the
sale of its Las Cruces, New Mexico facility on May 11, 2007 in accordance with
the Purchase and Sale Agreement between Key Tronic Corporation and Adevco
Corporation, dated December 29, 2006, as amended.
The total sale price was approximately $4.3 million.
Key
Tronic received approximately $2.8 million in cash and a $1.5 million note.
The note is for excess land which is covered by a flood zone designation.
The note is payable once the flood zone designation has been removed from the
excess land. If the flood zone designation is not removed, Adevco has the
option of paying the note or reconveying the excess land to Key Tronic.
“The sale of this facility, which we have not utilized since June 2005, is part of our continuing efforts to maximize the efficient utilization of our assets and strengthen our balance sheet,” said Jack Oehlke, President and Chief Executive Officer.
About
Key Tronic
Key
Tronic is a leading contract manufacturer offering value-added design and
manufacturing services from its facilities in the United States, Mexico and
China.
The Company provides its customers full engineering services, materials
management, worldwide manufacturing facilities, assembly services, in-house
testing, and worldwide distribution.
Its customers include some of the world's leading original equipment
manufacturers.
For more information about Key Tronic visit: www.keytronic.com.
Some
of the statements in this press release are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all passages containing verbs such as
‘aims, anticipates, believes, estimates, expects, hopes, intends, plans,
predicts, projects or targets’ or nouns corresponding to such verbs.
Forward-looking statements also include other passages that are primarily
relevant to expected future events or that can only be fully evaluated by events
that will occur in the future. Forward-looking statements in this release
include, without limitation, the Company’s statements regarding its
expectations with respect to quarterly revenue and earnings during fiscal 2007.
There are many factors, risks and uncertainties that could cause actual results
to differ materially from those predicted or projected in forward-looking
statements, including but not limited to the accuracy of customers’ forecasts;
success of customers’ programs; timing of new programs; success of new-product
introductions; acquisitions or divestitures of operations or facilities;
technology advances; changes in pricing policies by the Company, its
competitors, customers or suppliers; and the other risks and uncertainties
detailed from time to time in the Company’s SEC filings.