04/12/04
TECH GROUP AND TECH MOLD MERGE STRENGTHS

Tech Group Acquires Tech Mold's Molding Business Tech Mold Assumes Tech Group's Tool Making Operations

Scottsdale, AZ: The Tech Group, custom injection molder, medical contract manufacturer and mold manufacturer with 14 operations worldwide, announces a merger with Tech Mold Inc, one of the leading mold manufacturing companies in the world. Tech Mold has had a long history with Tech Group stemming from years of joint ownership. After considerable discussions, it was determined that both companies would benefit significantly by combining strengths: Tech Group acquired Tech Mold's molding operations; Tech Mold assumed Tech Group's tool making operations. This structure strengthens both companies to the mutual benefit of customers in the healthcare and consumer product markets.

In announcing this new relationship, Steve Uhlmann, founder of The Tech Group states, "We're extremely excited about this transition as it will increase our capability for our customers jointly. It is truly a win-win in the making."

Bill Kushmaul, President of Tech Mold agrees. "The Tech Group and Tech Mold had 29 great years together. After being apart for five years, we recognized that our synergies make us much better together. The time was right and we have a lot to gain by getting back together."

In this arrangement, Tech Group obtains added molding capacity in addition to providing molding capacity for the expected growth in Tech Molding's growing injection-molding operation. Tech Mold obtains mold manufacturing capacity and a platform for expanding their customer base globally into other Tech Group companies in Europe, and expanding precision mold building capabilities at Tech Group Asia.

In addition, Tech Group and Tech Mold will work jointly to adapt and drive technology for multi-component molding, as well as combine efforts of Tech Mold's engineering and sales expertise with Tech Group's global sales and marketing access. This will position each business as a leader in precision custom molding, contract manufacturing, and mold manufacturing worldwide, thereby yielding a greater ability to service their complementary customer base worldwide.

"Synergies between the two companies will generate numerous benefits, primarily in improved manufacturing efficiencies and greater capacity utilization," says Tech Group President and CEO, Harold Faig. "Strategically, the two companies are merging segments of their businesses to create the best-of-the-best, and customers obtain stronger suppliers with the ability to provide higher value and integrated solutions on a global basis."