Kontron Embedded Computers Creates New Communications Group and Announces New Executives

Montreal, (Canada) and Munich, (Germany) - July 11, 2001 - Following the successful acquisition of Memotec Communications Inc. on July 1, 2001, Kontron Embedded Computers AG (FSE: KBC), a leading manufacturer of embedded computing solutions, today announced the creation of its new communications group, Kontron Communications, and its new executive team.

Kontron Communications was created by merging Memotec Communications Inc., a datacom/telecom networking equipment company that provides data, voice and video convergence solutions, with Kontron´s North American subsidiary, Teknor Applicom Inc., a leading designer of open-architecture, standard bus embedded components and systems. Now, operating under the new name, Kontron Communications Inc., the company will design and manufacture high-density, OEM (Original Equipment Manufacturer) telecommunications platforms and subsystems, which provide complete networking interfaces and enabling communications software protocol support for the CompactPCI and PCI markets. Based on the PowerPC and Pentium CPU architecture, these OEM platforms enable the convergence of voice, video and data via protocols such as IP, Frame Relay, ATM and SS7.

"The creation of Kontron Communications is our response to the communications industry´s fundamental demand for open-architecture, state-of-the-art, and time-to-market solutions," says Hannes Niederhauser, president and CEO of Kontron Embedded Computers. "The communications marketplace is changing and proprietary, one-size-fits-all solutions no longer satisfy customer´s needs. By integrating Memotec´s and Teknor´s product lines and design expertise´s, Kontron Communications is able to provide the essential building-blocks for customized, systems-level solutions to OEMs."

Effective immediately, Mr. Pierre McMaster will assume the role as Chairman of Kontron Communications. In his new role, Mr. McMaster will be responsible for forging new strategic alliances with like-minded industry leaders, targeting companies for strategic mergers and acquisitions, and supporting sales and business development. Mr. McMaster brings over 15 years of industry experience to his position. Prior to this, he was the president and chief executive officer of Teknor Applicom, where he propelled it from its start-up position to the forefront of the applied computing industry.

Joining him, as Kontron Communications´ president and chief executive officer, is Mr. Claude Letourneau. Mr. Letourneau will be responsible for the overall management and strategic leadership of the company and implementation of Kontron Communications´ high-growth plan. Prior to assuming his new role, he was Teknor Applicom´s chief operating officer since June 2000, where he was instrumental in doubling the company´s sales in less than two quarters.

"I am very pleased Pierre and Claude agreed to take the helm at Kontron Communications," says Niederhauser. "Their understanding of the future of the communications marketplace, combined with their experience and success in the telecom and datacom industries will be the driving force behind Kontron Communications´ success."

About Kontron Embedded Computers AG
Kontron Embedded Computers AG is one of the largest manufacturers of embedded computing solutions. Kontron supplies leading OEMs, system integrators and application providers in the fields of communications, automation and mobile computers. The company helps its customers to considerably reduce their time-to-market and to gain a competitive advantage with products including high-performance open computer platforms and systems, single-board computers, man-machine interfaces and portable computers. Kontron employs more than 1000 people worldwide and has manufacturing facilities in Europe, North America and Asia Pacific. Kontron is listed on the German Neuer Markt stock exchange under the symbol "KBC". Additional information about Kontron is available at www.kontron.com.

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b>About Teknor Applicom Inc.
Montreal-based Teknor Applicom Inc., a wholly-owned operating company within the communications group of Kontron, is a global designer and manufacturer of innovative building blocks dedicated to its communications class of open platforms capable of supporting numerous network applications in today´s Internet and telecommunications infrastructure. Teknor´s innovative services and high performance PCI and CompactPCI platforms provide customers with the competitive advantage to market complete, value-added solutions directly to carrier, enterprise and service provider vendors. As a charter member of Intel´s Applied Computing Platform Provider (ACPP) program, Teknor´s customers possess timely technological advantages over their competitors. Teknor is also the North American communications competence center for Kontron Embedded Computers AG, and is the only embedded computer vendor to offer engineering and manufacturing resources in North America, Europe and Asia. Additional information about Teknor is available at www.teknor.com.

About Memotec Communications Inc.
Montreal-based Memotec Communications Inc., a wholly-owned operating company within the communications group of Kontron, is a networking company that provides data, voice and video convergence solutions for telecommunications carriers, Internet service providers, and corporate customers. Its product line of access devices and edge switches provide the consolidation of multiservice traffic over packet- and cell-based networks such as Frame Relay, IP and ATM. Memotec enables enterprise and carrier customers to lower operational costs and increase productivity by consolidating multimedia traffic over a common infrastructure. With offices around the world, and with more than 100,000 products installed in over 94 countries to date, Memotec serves the diverse and specialized needs of customers in Latin America, North America, Europe, the Middle East, Africa, Asia and the Pacific Rim. More information about Memotec can be obtained at www.memotec.com.

Media Contacts:
Sheri Somerville
Media Relations
Kontron Communications Inc.
Phone: 514.738.4781
sheri.somerville@ca.kontron.com

Dan Pirro
Corporate Director, Marketing Communications
Kontron Embedded Computers
Phone: 450.437.5682
dan.pirro@kontron.com