SAN JOSE, Calif., Sept. 19, 2007 (PRIME NEWSWIRE) -- Electroglas, Inc. (Nasdaq:EGLS), a leading supplier of wafer probing and software solutions for the semiconductor industry, today announced the signing of a Master Services Agreement with Flextronics Industrial Ltd., an affiliate of Flextronics International Ltd. (Nasdaq:FLEX). Flextronics will manufacture the full line of Electroglas probers in Malu, China, where it manufactures semiconductor equipment sold by other world class companies.
"In our continued effort to provide world class products with the quality, cost and lead-times required by our worldwide customer base, Electroglas has chosen to partner with Flextronics as our exclusive product manufacturer," said Tom Rohrs, Chairman and CEO of Electroglas. "We chose Flextronics because they can seamlessly integrate the manufacturing of the Electroglas products into their substantial semiconductor equipment manufacturing lines. The integration of Flextronics will be phased in over the next few quarters."
"Electroglas is an important, strategic customer addition to Flextronics Industrial segment as it allows us to showcase our diverse product expertise, vertical integration capabilities and technical leadership in the manufacturing of world-class semiconductor products," said E.C. Sykes, president, Flextronics Industrial segment. "Additionally, the Electroglas business relationship allows us to continue to build a strong product portfolio of technically complex, low volume, high mix products in China. We are very excited to have been selected by Electroglas to produce wafer prober products on a global level, a solution we feel uniquely able to deliver based on our service capabilities, pricing, footprint and our strong vertical solutions for mechanical parts."
About Electroglas
Electroglas is a leading supplier of wafer probers and software solutions and services for the semiconductor industry. For more than 40 years, Electroglas has helped integrated device manufacturers (IDMs), wafer foundries and outsourced assembly and test (OSAT) suppliers improve the overall effectiveness of semiconductor manufacturers' wafer testing. Headquartered in San Jose, California, with offices throughout the world, Electroglas has shipped more than 15,000 systems worldwide. Electroglas' stock trades on the NASDAQ Global Market under the symbol "EGLS." Additional information about Electroglas is available at www.electroglas.com.
Safe Harbor Statement
This news release contains forward-looking statements including statements relating to Electroglas' future manufacturing outsourcing, its manufacturing costs, and the quality of its products. These forward-looking statements involve risks and uncertainties including, but not limited to, the risks of our transition to a completely outsourced manufacturing model. Electroglas assumes no obligation to update this information. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Electroglas' business in general, see the risk disclosures in Electroglas' SEC filings, including its most recent annual report on Form 10-K for the year ended May 31, 2007, its quarterly reports on Form 10-Q and periodic reports on Form 8-K filed from time to time with the SEC.