Kontron AG intends to transfer KDMS production to Plexus Corp., USA

• Increased focus on higher-margin business
• Improved working capital
• One-off effects from transaction will be charged to 2011 annual results

Eching near Munich, January 5th, 2012. Kontron AG (FWB:KBC) has signed a term sheet with Plexus Corp. (NASDAQ:PLXS) in its continued effort of migrating towards higher-margin business of systems and customer-specific solutions. The structure for the contemplated transaction is an asset transaction in which assets of Kontron Design Manufacturing Services (KDMS), a wholly owned Kontron AG subsidiary based in Penang, Malaysia, will be transferred to Plexus Corp. for a purchase price of approximately USD 30 - 35 million. The closing of the transaction is expected in the next few weeks.

This transaction will result in an increase of flexible working capital for Kontron and allow the company to focus primarily on its core capabilities. Expanding on their existing strategic production alliance, the agreement also allows Kontron to benefit from the purchasing advantage of Plexus Corp. as the company plans to procure, in addition to existing business, around USD 100 million worth of modules per year to help meet customer demand.

Ulrich Gehrmann, CEO of Kontron AG, commented as follows on the transaction: "The agreement enables Kontron to focus on our core competencies in providing superior engineering services. By expanding our relationship with Plexus, Kontron ensures its continued commitment to best-in-class quality products. The result is an increase of efficiency in operational expenses and working capital, positioning Kontron for a larger market penetration of higher gross margin design wins.”
Dean Foate, Plexus President and Chief Executive Officer, commented as follows: "We believe this strategic arrangement will expand and strengthen our existing relationship with Kontron, capitalizing on our demonstrated leadership in mid-to-low volume, higher-complexity manufacturing programs. Kontron is a global leader in embedded computing technology and a strong partner for Plexus in our Industrial/Commercial market sector."
One-off expense of approximately six million Euro is expected to be incurred in the fourth quarter of 2011 as part of this transaction. Due to these one-off effects, the planned 8% EBIT margin for 2011 can no longer be achieved. Full-year revenue for 2011 will prospectively be in the range of expectations.

Kontron expects from this transaction for 2012 modestly accretive EPS, improved working capital, reduced capital expenditures and significant increased sales per employee.

About Kontron AG
Kontron is a global leader in embedded computing technology. With about a third of its employees in R&D, Kontron creates many of the standards that drive the world’s embedded computing platforms. Kontron’s product longevity, local engineering, support, and value-added services helps to create a sustainable and viable embedded solution for OEMs and system integrators.
Kontron works closely with its customers on their embedded application ready platforms and customer solutions, enabling them to focus on their core competencies. The result is an accelerated time-to-market, reduced total-cost-of-ownership and improved overall application with leading-edge, highly-reliable embedded technology.
Kontron is listed on the German TecDAX stock exchanges under the symbol “KBC”.

About Plexus Corp. – The Product Realization Company
Plexus delivers optimized Product Realization solutions through a unique Product Realization Value Stream service model. This customer-focused services model seamlessly integrates innovative product conceptualization, design, commercialization, manufacturing, fulfillment and sustaining services to deliver comprehensive end-to-end solutions for customers in the Americas, European and Asia-Pacific regions.

Plexus is the industry leader in servicing mid-to-low volume, higher complexity customer programs characterized by unique flexibility, technology, quality and regulatory requirements. Award-winning customer service is provided to over 130 branded product companies in the Networking/Communications, Medical, Industrial/Commercial and Defense/ Security/Aerospace market sectors.

Investor Relations:
Gaby Moldan / Jacqueline von Berg
Kontron AG
Oskar-von-Miller-Str. 1
85386 Eching
Tel: 08165/77212, Fax 08165/77222
Email: Gaby.Moldan@kontron.com or Jacqueline.vonBerg@kontron.com

For further Information:
Florian Bergmann/ Bettina König
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Schloss Fußberg, Am Schlosspark 15,
82131 Gauting
Tel: 089-89 35 633, Fax: 089-89 39 84 29
Email: f.bergmann@engel-zimmermann.de or b.koenig@engel-zimmermann.de