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, Munich, May 20, 2010. Through its US subsidiary, Kontron AG, the globally leading provider of embedded computer systems, 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. The purchase price is between USD 30 million and USD 42 million, depending on future results. The company is highly profitable; its EBIT valuation is significantly below that of Kontron. 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 Kontron headquarters, which is also based in San Diego. AP Parpro Inc. also forms part of the corporate group, which operates cost-efficient production capacities in Mexico.

According to Kontron CEO, Ulrich Gehrmann, the strategic acquisition creates benefits in varied ways: the US Defense Department's official accreditation of AP Labs strengthens its regional presence on the high-margin US security market, and AP Labs' complimentary system product line perfectly supplements the board product line of Kontron's French subsidiary (formerly Thales Computers SA) in the security area. With the purchase, Kontron intends to further expand its position as one of the world's leading providers of sophisticated complete solutions, thereby consistently pursuing its new strategy of concentrating on high-margin core embedded systems.

Investor Relations:

Gaby Moldan
Kontron AG
Oskar-von-Miller-Str. 1,
85386 Eching ,
Tel: 08165/77212, Fax 08165/77222
Email: [email protected]

For further information:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Am Schlosspark 15,
82131 Gauting
Tel. 089-89 35 633, Fax: 089-89 39 84 29