www.viasystems.com

Viasystems Group, Inc., is the largest independent manufacturer of printed circuit boards (PCBs) and value-added backplane assemblies and services in the world. The company is primarily focused on the rapidly growing markets and product segments of telecom, datacom, and high-end computing. PCBs are the basic platforms used to interconnect microprocessors, integrated circuits and other components essential to the functioning of electronic products. Backplanes are used in electronic systems to distribute and ground power, to connect PCBs, power supplies and other elements, and to transfer information into and out of the system. Both PCBs and backplanes are essential components of all electronic products ranging from basic home appliances to sophisticated telecommunications, computing, automotive and military applications. Among others, Viasystems’ products can be found in telephone switching and transmission equipment, computers, digital pagers and ABS traction control systems.

Viasystems was formed through the acquisition and combination of Circo Craft Co. Inc., a Canadian manufacturer of PCBs, and the Interconnection Technologies Unit of the Microelectronics Group of Lucent Technologies in the fourth quarter of 1996. Viasystems continued to build this strong base by acquiring Forward Group and Interconnection Systems Limited, both U.K. manufacturers of PCBs, in April 1997. Additionally, Viasystems acquired Ericsson Telecom AB’s printed circuit board facility in Norrkoping, Sweden, and Zincocelere SpA, an Italian PCB manufacturer, in March 1998 and Mommers Print Service, B.V., a high tech PCB manufacturer in the Netherlands also in March 1998. Mills & Partners identified the acquired companies as attractive acquisition candidates because of their technological leadership, complimentary product offerings and superior market and cost position.

The most recent acquisition of Kalex Printed Circuit Board Inc., People's Republic of China completes the global platform of Viasystem's "buy and build" strategy by providing a strong manufacturing base in the Asia Pacific region. Kalex's extended capabilities include manufacturing multi-layer boards up to 12 layers. The typical low labor costs and raw material costs associated with the Asian region have enabled Kalex to stay abreast of the latest technologies, focusing on blind and buried vias, flexible circuits, and ball-grid array capabilities.

The following summarizes the competitive strengths of Viasystems:
•	Strong Customer Relationships. With short product life cycles and increasing product complexity, customers are further consolidating their supplier base, favoring suppliers who can meet all of their needs from quick turnaround to prototyping to high volume production. Viasystems has developed long-term relationships with a diverse group of customers including Lucent Technologies, Ericsson, Nortel, Delco Electronics, GDT, Motorola and Alcatel by offering a broad range of high quality products and services. To insure a long term, reliable source of PCB and backpanel supply to Lucent, Viasystems and Lucent entered into a five year supply agreement with evergeen provisions. This agreement has a minimum purchase requirement and offers Viasystems the right to bid on all of Lucent’s future contracts. As a significant supplier to Lucent, the global leader in the sale of telecommunications systems, Viasystems is well positioned in the fast growing telecom segment of the electronics industry.
•	Technological Leadership. Viasystems is recognized in the industry for its dedication to manufacturing quality products. With over 700 engineers, 50 labs, 40 clean-rooms and state-of-the-art processing capability, Viasystems possesses a level of technology, both product and process, which is unequaled in the industry.
•	State-of-the-Art Facilities. Viasystems maintains ISO 9002 certified facilities with total in excess of 3.8 million square feet. The company operates the largest PCB manufacturing facilities in the U.S. and Europe. Viasystems’ facilities are among the most advanced in the industry and include both Class 10,000 clean-rooms and Class 100,000 clean-rooms.
•	Dominant Market Position. Viasystems is capable of competitively producing, at any volume level, ranging from prototype to high volume, complex multi-layer PCBs at a quality level and at a competitive cost position.

To further improve the company’s position in the industry, Viasystems, under the direction of Mills & Partners, has begun the implementation of its strategy to increase cash flows and revenues. The following enhancements are in process.

•	Improve Path to Market. The company has developed in both North America and Europe, a sales force which combines the direct sales organization, highly technical field engineers, independent manufacturers representatives, and an inside sales organization. This organization has a broad customer focus and can offer a wider range of products and services than any of the acquired companies could independently.
•	Best Practices. Viasystems has begun implementing the “best practices” of each operation throughout the organization. Additionally, the capacity improvements expected as a result of this process will allow for improved plant utilization.
•	Purchasing Synergies. Viasystems, as one of the largest PCB manufacturers in the world, has the ability to leverage its purchasing on a global basis, resulting in favorable raw material procurement costs.
•	Strategic Alliances. Viasystems will continue to establish technology alliances with its customers in order to provide its customers with new material process solutions and increased product performance.
•	Pursue Selective Acquisitions. The company intends to pursue selective acquisitions which complement its existing product offering and/or geographic presence. Viasystems believes that carefully selected acquisitions will provide opportunities for increased revenue and cash flow by enhancing the Company’s products and services offering and technical and manufacturing capabilities.