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Press release

Presteigne, UK
10th December 2000

LABTECH OWNERS MAKE CHANGES TO HI-TECH STABLE

The owners of leading Mid Wales microwave printed circuit board manufacturers Labtech have made changes to its stable of hi-tech companies with the aim of bringing more focus to the business.

Intelek plc, which took over Presteigne-based Labtech in 1990, has agreed to pay £18.3 million for Paradise Datacom Ltd and to sell aerospace tooling manufacturer A.C.E. Tooling Inc, based in Muskegon, Michigan, in a deal worth £610,000 before tax.

Paradise Datacom Ltd designs, manufactures and sells modems and microwave amplifiers for the satellite communications market.

Intelek says the changes form part of the company's plan to focus attention on its core activities in electronics and communications.

"The acquisition of Paradise Datacom lifts Intelek's profile in the European and US microwave communications markets at a time when wireless communications network operators are investing heavily in infrastructure to service the ever-increasing demand for global communication," said Intelek chairman Roger Fletcher.

"We plan to use the proceeds from the disposal of A.C.E. Tooling to support Intelek's plans for growth within the US market and, in particular, the US activities which will become part of the group through the acquisition of Paradise Datacom".

Paradise Datacom is now one of four companies owned by Intelek, which supplies leading edge technologies to the world's electronics and aerospace markets and is listed on the London Stock Exchange's new techMARK index.

Intelek also recently announced plans to raise £10.14 million with a placing of new shares at 37p each.

Labtech's Managing Director Dr Brian Mazonas believes the acquisition of Paradise Datacom is good news for the Mid Wales company.

"We are delighted to be associated with another successful company, which can only benefit Labtech," he said. "It will certainly help to raise our profile and develop the United States market."

Labtech, established in Presteigne 16 years ago with just three staff, has grown rapidly in the last two years as the company has ridden the crest of the global telecommunications wave.

The company has seen its workforce expand to 170 and there are plans to double the size of its 32,000 sq. ft. base within the next 12 months, creating up to 30 new jobs.

To meet rising demand for its products, Labtech has recently trebled its plating capacity after spending £750,000 over the last two years in the chemical processing area to improve automated production.

Microwave PCBs lab

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