RAD Electronics, Inc. - Press Release

RAD Technologies Announces Two Acquisitions
Arrow Electronics" Cable Assembly Division and Astrex Inc.

William C. Cacciatore, chairman, RAD Technologies, LLC and former chairman, CEO and president of Richey Electronics and Chuck Mann, CEO, RAD Technologies, former vice president of Richey Electronics are pleased to announce the signed agreements to acquire Arrow Electronics’ Cable Assembly Division, and Astrex, Inc, a value added distributor.

RAD Technologies, LLC is a combination of two operating divisions: RAD Technologies, a contract manufacturing company; and RAD Mil –Aero, a value added distributor. RAD Technologies is a contract manufacturing company specializing in the assembly of complex printed circuit boards, custom cable assemblies, and over molded embedded electronics. RAD Mil-Aero is a value added distributor of electronic connectors and components for the military and aerospace industry, specializing in Mil-C-39029 contacts and Mil-C-38999 and Mil-C-26482 circular connectors.

Arrow Electronics Cable Assembly Division is a major supplier of custom cable assemblies and associated contract manufacturing services. Astrex, Inc. is a value added electronic component distributor, serving a worldwide OEM and reseller customer base.

Mr. Cacciatore said, “The acquisition of the Arrow cable assembly division will significantly increase the capacity of RAD Technologies contract manufacturing capabilities by increasing custom cable and board assembly as well as complete sub system assemblies. RAD Technologies will continue to operate in the existing facilities located in Portland, Oregon, Boston, Massachusetts, Los Angeles, California, and Tijuana, Mexico. The Arrow cable assembly operations will be merged into the current RAD Technologies manufacturing divisions and go to market as RAD Technologies.”

Cacciatore also said, “The acquisition of Astrex, Inc. will considerably strengthen the company’s distribution division, RAD Mil-Aero.” RAD Mil-Aero will be merged with Astrex, Inc. The combination will go to market as Astrex, with headquarters in its current facility in Plainview, N.Y. Mr. Mike McGuire, current president of Astrex, Inc. will continue as the president of the newly combined business. Mr. McGuire has over 25 years experience in electronics distribution, operations, sales and marketing.”

Both acquisitions will become effective May 31, 2005. “Aggressive expansion is planned for both operating divisions” indicates, Chuck Mann, CEO of RAD Technologies. “We are pleased with these acquisitions because not only do they fulfill our strategic vision but they also strengthen both of our operating divisions at the same time. RAD Technologies is now a formidable player in contract manufacturing services as well as in distribution of value added interconnect electronic components. Interdivisional and cross selling opportunities as well as an excellent mix of OEM, contract manufacturers and reseller customers enable us to now serve large, medium and small accounts alike with a concentration in a mid size customer base. We will use this synergy to achieve our growth targets.”

First year sales projections of this newly formed enterprise will exceed ninety million, up from the 2001 sales figure of three million. This was only possible due to the extraordinary efforts made by the employees, customers, investors and management of RAD Technologies, who contributed to this outstanding accomplishment.

Sun Valley, CA	10875 La Tuna Canyon Road • Sun Valley, CA 91352	818-381-8500
Wilmington, MA	155 West St Suite 3 • Wilmington, MA 01887	978-664-3148
Tijuana, Mexico	Calle Elote #50Parque Ind • Tijuana, BC Norte, CP22680

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