MFLEX Announces Expansion Satellite Facility in Malaysia

ANAHEIM, Calif., Aug. 27 /PRNewswire-FirstCall/ -- Multi-Fineline Electronix, Inc. (Nasdaq: MFLX), a leading global provider of high-quality, technologically advanced flexible printed circuit and value-added component assembly solutions to the electronics industry, today announced it has signed agreements to lease a 117,000 square foot facility in Pontian, Johor Darul Takzim, Malaysia and to purchase manufacturing equipment located at the facility for approximately $1 million. The facility is currently owned by Wearnes Electronics Malaysia, an electronics manufacturing and assembly services provider and subsidiary of WBL Corporation Limited, which is MFLEX's largest shareholder. In addition, MFLEX will also offer employment to approximately 125 employees currently employed by or contracted to Wearnes Electronics. The new facility is expected to become operational in December 2008.

MFLEX intends to transfer its high-mix/low-volume assembly manufacturing currently performed at its headquarters in Anaheim, California and facilities in Suzhou, China to this new facility. MFLEX will run the leased facility as a satellite operation to provide additional assembly manufacturing capacity, a concept that it has successfully implemented in the past to accommodate increased demand on a just-in-time basis. The Company's high-mix/low-volume business is comprised of programs featuring a significant number of models but produced in limited quantities and is currently in applications for the medical and industrial marketplace.

"In addition to providing us a geographically diversified location, we believe these transactions will enable us to operate our high-mix/low-volume assembly manufacturing business more efficiently and cost effectively," said Reza Meshgin, MFLEX's president and chief executive officer. "While this comprises a very small portion of our overall business today, we see strong growth potential and opportunities to expand into new markets in the future. These transactions provide MFLEX with a turnkey satellite facility and trained workforce as we execute our strategic plan to grow our high-mix/low-volume business."

About MFLEX

MFLEX (http://www.mflex.com) is a global provider of high-quality, technologically advanced flexible printed circuit and value-added component assembly solutions to the electronics industry. The Company is one of a limited number of manufacturers that provides a seamless, integrated end-to-end flexible printed circuit solution for customers, ranging from design and application engineering, prototyping and high-volume manufacturing to turnkey component assembly and testing. The Company targets its solutions within the electronics market and, in particular, focuses on applications where flexible printed circuits are the enabling technology in achieving a desired size, shape, weight or functionality of an electronic device. Current applications for the Company's products include mobile phones and smart mobile devices, personal digital assistants, mobile power adapters, medical devices, computer/data storage and portable bar code scanners. MFLEX's common stock is quoted on the Nasdaq Global Select Market under the symbol MFLX.

Certain statements in this news release are forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include, but are not limited to, statements and predictions regarding the Company's manufacturing operations and the movement of such operations to different locations, including expected benefits associated with such movement, operating expenses, profitability, the efficiency and cost effectiveness of the Company's manufacturing locations, and market and growth opportunities. Additional forward-looking statements include, but are not limited to, statements pertaining to other financial items, plans, strategies or objectives of management for future operations, the Company's future operations and financial condition or prospects, and any other statement that is not historical fact, including any statement which is preceded by the words "assume," "can," "will," "plan," "expect," "estimate," "aim," "intend," "project," "foresee," "target," "anticipate," "may," "believe," or similar words. Actual events or results may differ materially from those stated or implied by the Company's forward-looking statements as a result of a variety of factors including the impact of changes in demand for the Company's products and the Company's success with new and current customers, the Company's ability to develop and deliver new technologies, the Company's ability to diversify its customer base, the Company's effectiveness in managing manufacturing processes and costs and expansion of its operations, the Company's ability to manage quality assurance issues, the degree to which the Company is able to utilize available manufacturing capacity, enter into new markets and execute its strategic plans, the impact of competition, pricing pressures and technological advances, and other risks detailed from time to time in the Company's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2008. These forward-looking statements represent management's judgment as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements.

SOURCE Multi-Fineline Electronix, Inc.