Kontron Acquires US Company AP Labs Group

Strategic investment in future security market Strengthening of product portfolio and regional presence Expansion of high-margin complete system solution product range

Eching, Germany, May 21, 2010 – Through its US subsidiary, Kontron has acquired 100 percent of US company AP Labs Group, which is based in San Diego, California. The group, which has two operating companies, is regarded as one of the leading system integrators in the areas of defense and aerospace. Since its inception in 1984 the company has firmly established itself on the market for the development and series production of highly complex and robust computer systems, as well as specialized applications. Kontron anticipates that both new subsidiaries will make an annual revenue of USD 30 million. Kontron intends to integrate AP Labs with its North American headquarters, which is also based in San Diego. Kontron has access to cost-efficient, local production capacities as the result of the company AP Parpro Inc., which also forms part of the group and is located in Mexico, close to Kontron's NA headquarters.

For Kontron, whose revenue share in the security application area had already grown to 16 percent in the last business year, the strategic acquisition brings advantages in many respects, "We are strengthening ourselves both regionally in the USA, and also in the area of high-margin complete solutions," commented Kontron CEO Ulrich Gehrmann. "AP Labs' complementary system product line also perfectly supplements our French subsidiary's board product range in the security segment, which reports consistent growth, and has historically been independent of business cycles." In 2008, Kontron acquired the former French company Thales Computers SA from Thales Group, strengthening Kontron both in the defense/aerospace area, and regionally in Europe. The US Defense Department's official accreditation of AP Labs also now facilitates even better access for Kontron into the high-margin US market.

With its most recent purchase, Kontron intends to further expand its position as one of the world's leading providers of sophisticated complete solutions for the security area, thereby consistently pursuing its new strategy of concentrating on high-margin core embedded systems. Mr. Gehrmann further explains, "The future lies in high-margin and highly complex systems and solutions, as delivered by AP Labs. As an innovation leader, we aim to, and must, concentrate on this area." AP Labs' strengths in the engineering area should also help Kontron to further optimize both future development costs and times to product launch. Time-to-market will also be reduced significantly as a result of the complete solutions product range.

About Kontron

Kontron, the global leader of embedded computing technology, designs and manufactures embedded and communications standards-based, rugged COTS and custom solutions for OEMs, systems integrators, and application providers in a variety of markets. Kontron engineering and manufacturing facilities, located throughout Europe, North America, and Asia-Pacific, work together with streamlined global sales and support services to help customers reduce their time-to-market and gain a competitive advantage. Kontron’s diverse product portfolio includes: boards & mezzanines, Computer-on-Modules, HMIs & displays, systems & platforms, and rugged & custom capabilities. Kontron is a Premier member of the Intel® Embedded Alliance and has been a VDC Platinum Vendor for Embedded Computer Boards 5 years running. Kontron is listed on the German TecDAX stock exchange under the symbol "KBC". For more information, please visit: www.kontron.com