Creation Acquires Second Source

VANCOUVER -- Creation Technologies Inc., a top 100 Electronic Manufacturing Service (EMS) provider and an expert in manufacturing complex electronics, today announced it has acquired Second Source System Incorporated of Richardson, Texas. The new operation, which will be renamed Creation Technologies Dallas, will provide electronics manufacturing services for medium-volume, highly complex electronics products.

Second Source, a privately owned company in operation since 1986, is forecasting 2004 revenues of $16 million. The company operates surface mount technology (SMT) lines and has 15 customers that participate in the communications, industrial controls, computers and medical product markets. The current Second Source operation will be moved to a new 40,000 square foot location in Plano, Texas in January 2005.

"The Southern United States is a key area of focus for us as we believe this region is underserved by EMS companies who are able to provide full expertise in the area of complex electronics," said Arthur Tymos, President of Creation Technologies. "We became particularly interested in Texas given the number of potential customers and the associated growth opportunities for Creation. Adding this location in the Southern U.S. is a significant step forward in our strategy to be the service provider of choice in North America in our market niche."

"We are very excited to integrate into Creation's strong business model and culture," said Ray Bodensteiner, co-owner of Second Source Systems. Tom Moe, co-owner of Second Source commented that, "As a new Creation Technologies business unit, we can provide Southern U.S. customers with a broader scope of services including product design, electronic and mechanical assembly, test services, logistics and warranty and repairs. The quality our customers have come to associate with Second Source will continue as we take this important step forward."

Creation Technologies Inc.