SMTC and FICOSA Announce Strategic Arrangement

SMTC and FICOSA Announce Strategic Arrangement

World Leader in Automotive Industries Forms Manufacturing Agreement With
Global EMS Provider

TORONTO, Dec. 4, 2012 (GLOBE NEWSWIRE) -- SMTC Corporation (Nasdaq:SMTX)
("SMTC"), a global electronics manufacturing services provider, and FICOSA
International S.A. ("Ficosa"), a global leader in automotive systems and
parts, announce the signing of a strategic manufacturing agreement. Under this
agreement, Ficosa will transition the manufacturing of select programs to
SMTC's Suzhou plant in China.

Ficosa is a multinational corporation devoted to the research, development,
production and commercialization of systems and parts for the automotive
industry, for both commercial and industrial vehicles. Founded in 1949, the
company has its headquarters in Barcelona (Spain), and an operating presence
in 19 other countries across the globe.

Under the terms of the strategic manufacturing agreement, SMTC will provide
Ficosa with a range of automotive electronics manufacturing services at SMTC's
facility in Suzhou (China). These services will include manufacturing
engineering support, PCBA (Printed Circuit Board Assembly) manufacturing,
system integration, module assembly, and logistics services. Ficosa will also
leverage SMTC's expertise in global supply chain management services by
utilizing its well-established global network of material sourcing and
supplier partners. Ficosa will contribute also in the development of SMTC as a
supplier for the automotive industry.

Through this partnership, SMTC will also offer its customers the expertise of
Idneo, a product design subsidiary of FICOSA. With 180 engineers, Idneo is a
world-class product realization enterprise committed to product design and
development for customers within the Industrial, Medical, Consumer and
Automotive markets. Idneo's knowledge covers a wide range of specialties,
including design and engineering of embedded software, electro-mechanical
components, power circuits, hardware and packaging.

"The marketplace of leading edge automobile electronics is a good fit for
SMTC's advanced manufacturing expertise. We have made significant investments
in talent, process and manufacturing technologies to support our growing
industrial customer base," said Claude Germain, President and Chief Executive
Officer for SMTC. "Ficosa is an industry leader with a reputation for creating
innovative technologies, and we are excited to have been selected by them to
help industrialize and manufacture their new products."

"We are very impressed with SMTC's depth of knowledge and expertise in this
type of technology. They have years of experience taking products from new
product introduction to volume production, and a reputation for high quality.
Working closely with SMTC, and leveraging their global resources and
footprint, allows us to cost-effectively and rapidly ramp-up our products,"
said Javier Pujol, Chief Executive Officer of Ficosa.

About SMTC Corporation: SMTC Corporation, founded in 1985, is a mid-size
provider of end-to-end electronics manufacturing services (EMS) including PCBA
production, systems integration and comprehensive testing services, enclosure
fabrication, as well as product design, sustaining engineering and supply
chain management services. SMTC facilities span a broad footprint in the
United States, Canada, Mexico, and China, with more than 1,875 full-time
employees. SMTC services extend over the entire electronic product life cycle
from the development and introduction of new products through to the growth,
maturity and end-of-life phases. SMTC offers fully integrated contract
manufacturing services with a distinctive approach to global original
equipment manufacturers (OEMs) and emerging technology companies primarily
within industrial, computing and communication market segments. SMTC was
recognized in 2012 by Frost & Sullivan with the Global EMS Award for Product
Quality Leadership.

SMTC is a public company incorporated in Delaware with its shares traded on
the Nasdaq Global Market under the symbol SMTX. For further information on
SMTC Corporation, please visit our website at www.smtc.com
(http://www.smtc.com/).

The SMTC Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=9800

About FICOSA

FICOSA is an industrial group based in Spain and a global leader in research,
development, production and marketing of automotive systems and parts. Founded
in 1949, the company, with headquarters in Barcelona (Spain), holds a team
close to 8500 employees and manufacturing plants, technological centres and
offices located throughout 19 countries in Europe, North America, South
America and Asia. The Group invests 4% of its income in R&D, and operates one
of the top technology development centres in Spain addressed to the
automotive, electronics, energy and communications industries. FICOSA has
positioned itself for the future as a world leader in electronic systems with
a global and more diversified business agenda and an expanded added value
product line.

CONTACT: Investor Relations Information:
         Claude Germain
         President and Chief Executive Officer
         Telephone: (905) 413.1272
         Email: investorrelations@smtc.com
         or
         John Nesbett/Jennifer Belodeau
         Institutional Marketing Services (IMS)
         Telephone: (203) 972-9200
         Email: jnesbett@institutionalms.com
        
         Public Relations Information:
         Tom Reilly
         Director of Marketing
         Telephone: (905) 413.1188
         Email: publicrelations@smtc.com

         More information about FICOSA:
         David Guerrero or Sonia Perez
         Telephone: +34 93 700 82 00
         Email: david.guerrero@ficosa.com  orsonia.perez@ficosa.com

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