TFS Acquires Integrex Customer Base

TEMPE, Ariz., March 2 -- Three-Five Systems (TFS) Inc. has acquired the customer base and hired key employees of Integrex Inc., a private electronics manufacturing services (EMS) company.

TFS said it will transfer existing programs from Integrex's Bothell, Wash., location to TFS's EMS facility in Redmond over the next six weeks. It said it is not acquiring Integrex's manufacturing facility in Bothell. TFS acquired ETMA, a Redmond-based EMS company, in December 2002.

TFS said it will buy the raw material inventory of Integrex as needed to begin manufacturing products for its new customers and is providing Integrex with an up-front, one-time payment to offset customer transfer costs. It also said it will provide an advance to Integrex against sales revenue contingent payments.

Integrex was founded in 1999 as a full-service EMS company providing turnkey manufacturing services, including design, new product introduction, printed circuit board assembly, system integration, test and after-market support.

Jack Saltich, CEO for TFS, said, "Integrex has penetrated certain market segments, including military applications, that represent target growth areas for TFS. We believe we can expand upon this business by leveraging our outstanding manufacturing quality in Redmond with our high-volume efficiencies at our Asian manufacturing locations and thereby continue our initiative to become a dominant EMS provider in the Northwest."

Primary investors included Benaroya Capital, Fluke Venture Partners and Sunrise Capital.

For more information, visit: www.tfsc.com