SMTC Expands San Jose Manufacturing Center

Site Open House on October 21st to Showcase Capabilities

TORONTO, Oct. 20 /CNW/ - SMTC Corporation (Nasdaq: SMTX, TSX: SMX) ("SMTC"), a global electronics manufacturing services provider, has recently completed a significant expansion of their service offering and manufacturing capabilities at their San Jose, California regional manufacturing center in support of a growing customer base and regional growth opportunities.

The ISO 9001 and ISO 13485 registered facility has deployed an expanded suite of manufacturing and test equipment platforms critical in the support of OEM early manufacturing involvement activities, including engineering support and DFX, quick turn prototyping and product qualification. Investments include 5DX x-ray, automated optical inspection (AOI) and flexible SMD placement equipment.

SMTC San Jose supports a growing number of OEMs with a broad production requirements including engineering support, material supply chain design and advanced procurement support, prototyping and product qualification, PCBA assembly through final product and system manufacturing, global distribution, product life cycle management and after-sales support. Production capacity at SMTC San Jose has been increased recently with the addition of a new SMD line and the expansion of back end and full product assembly production lines.

"We have completed the expansion of our capabilities in San Jose in response to demand from core customers here in the Silicon Valley," said Rich Camarda, Vice President and General Manager of SMTC San Jose. "The expansion in capabilities and in our technical and supply chain staff will ensure our operation is well-positioned to support growth at our current customers. It will also position SMTC as a premier mid size EMS provider in the valley, while also providing effective regional manufacturing solutions while offering OEMs a low risk path way to volume manufacturing in Mexico and China".

SMTC San Jose is a 70,000 square foot high-mix, low-to-medium volume manufacturing facility servicing OEMs in the Western USA with complete product life cycle support capabilities. SMTC facilities in the USA, Mexico and China deploy a "Copy Exact" framework which leverages common SMD placement and test equipment, along with standardized manufacturing and product data management software systems and manufacturing processes to ensure seamless, timely and cost effect production transfers.

SMTC San Jose will be hosting an open house on October 21, 2010. Interested parties are encouraged to RSVP for the event at SMTC's web site. www.smtc.com

About SMTC Corporation: SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC facilities span a broad footprint in the United States, Canada, and Mexico, and a partnering relationship in China, with over 1,500 full time employees. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and emerging technology companies primarily within industrial, computing and communication market segments.

SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX and on the Toronto Stock Exchange under the symbol SMX. For further information on SMTC Corporation, please visit our website at www.smtc.com (http://www.smtc.com/)

Note for Investors: The statements contained in this release that are not purely historical are forward-looking statements which involve risk and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These statements may be identified by their use of forward-looking terminology such as "believes", "expect", "may", "should", "would", "will", "intends", "plans", "estimates", "anticipates" and similar words, and include, but are not limited to, statements regarding the expectations, intentions or strategies of SMTC Corporation. For these statements, we claim the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995. Risks and uncertainties that may cause future results to differ from forward-looking statements include the challenges of managing quickly expanding operations and integrating acquired companies, fluctuations in demand for customers' products and changes in customers' product sources, competition in the EMS industry, component shortages, and others discussed in the Company's most recent filings with securities regulators in the United States and Canada. The forward-looking statements contained in this release are made as of the date hereof and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

For further information: Jane Todd, Senior Vice President, Finance and Chief Financial Officer, [phone], Email: [email protected]