IEC Announces Additional Debt Reduction

IEC Announces Additional Debt Reduction 
NEWARK, NY -- (Marketwire) -- 05/15/12 --   IEC Electronics Corp.
(NYSE Amex: IEC) announced it has reached final agreement with the
sellers of Southern California Braiding Inc. (SCB) regarding
acquisition-related escrow claims. 
When the SCB acquisition was closed in December, 2010, cash and
shares of IEC common stock were deposited in escrow with Wells Fargo
Bank, N.A. to be released in 2012 to the buyer or sellers dependent
upon SCB's achievement of certain post-closing performance metrics
during calendar 2011. IEC and the sellers have just concluded an
agreement finalizing escrow claims, under which IEC will receive $1.8
million in cash and 68,625 shares of IEC common stock from the
escrow. The funds will be applied to IEC debt and the equity will be
W. Barry Gilbert, Chairman and CEO, said, "We were pleased to come to
a satisfactory mutual agreement with the sellers of SCB. We will use
the funds to continue paying down our debt. As mentioned in our
shareholder call on Wednesday of last week, we anticipated paying
down our debt by approximately $9 million in fiscal 2012. After the
application of these funds, we now envision paying down our debt by
approximately $11 million. This is on top of the $12 million we paid
down the debt since we purchased SCB last year.  
"Although Southern California Braiding has had a challenging start
transitioning from a private company to a rapidly growing public
company, we believe it will turn out to be one of IEC's best
acquisitions. It has started to exhibit the growth we envisioned." 
About IEC Electronics
 IEC Electronics Corporation is a premier
provider of electronic manufacturing services ("EMS") to advanced
technology companies primarily in the military and aerospace,
medical, industrial and computing sectors. The Company specializes in
the custom manufacture of high reliability, complex circuit cards,
system level assemblies, a wide array of custom cable and wire
harness assemblies, precision sheet metal products, and advanced
research and testing services. As a full service EMS provider, IEC is
a world-class ISO 9001:2008, AS9100 and ISO13485 certified company.
The AS9100 certification enables IEC to serve the military and
commercial aerospace markets. The ISO13485 certification supports the
quality requirements of medical device markets. The Company is also
ITAR registered and NSA approved under the COMSEC standard. Dynamic
Research and Testing Laboratory (DRTL), the Company's newest business
unit, is an ISO 17025 accredited laboratory specializing in the
testing and detection of counterfeit electronic parts, as well as
component risk mitigation and advanced failure analysis. IEC
Electronics is headquartered in Newark, NY (outside of Rochester) and
also has operations in Victor, NY, Rochester, NY, Albuquerque, NM and
Bell Gardens, CA. Additional information about IEC can be found on
its web site at  
The foregoing release, including any discussion regarding the
Company's future prospects, contains certain forward-looking
statements that involve risks and uncertainties, including
uncertainties associated with economic conditions in the electronics
industry, particularly in the principal industry sectors served by
the Company, changes in customer requirements and in the volume of
sales to principal customers, competition and technological change,
the ability of the Company to control manufacturing and operating
costs, the ability of the Company to develop and maintain
satisfactory relationships with vendors, and the ability of the
Company to efficiently integrate acquired companies into its
business. The Company's actual results of operations may differ
significantly from those contemplated by any forward-looking
statements as a result of these and other factors, including factors
set forth in the Company's 2011 Annual Report on Form 10-K and in
other filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly update or revise
forward-looking information, whether as a result of new, updated
information, future events or other
Vincent Leo
Acting Vice President & CFO
IEC Electronics Corp.
(315) 332-4308  
John Nesbett or Jennifer Belodeau
Institutional Marketing Services
(203) 972-9200 
Press spacebar to pause and continue. Press esc to stop.