Partnering agreement signed with Celestica Inc.

Celestica & Keating Technologies Team Up To Capture Canadian Memory Market

Toronto, ON – Canadian-owned Celestica, one of the largest manufacturers of memory modules in the world, has formalized an agreement with Keating Technologies Inc., whereby Keating will provide sales, marketing and technical support services for Celestica’s memory products in Canada.

The move is part of a concerted effort by Celestica, with current revenues exceeding $3 Billion (CDN), to become a world leading distributor of branded memory products by the year 2000. A recent Dataquest study estimates that the global revenue for third-party DRAM modules will reach almost $7 billion U.S. during 1997; growing to over $15 billion by the turn of the century.

Celestica has a history of supplying superior products and services to leading technology manufacturers around the world. “As one of the foremost technology suppliers, we have delivered more than 25 million memory modules during the last three years,” says Ray LeBlanc, Celestica’s vice-president, memory sales and marketing. “Although we have an acknowledged reputation with large, global OEM accounts, Celestica branded memory products is a new line which requires more aggressive sales and marketing support. We need strong partners who can help us expand aggressively in strategic markets such as Canada. Keating Technologies’ reputation, experience and leadership brings to us the exact formula we need to get a fast start in the Canadian market for branded memory.”

The new relationship establishes a unique precedent for Markham, Ontario based Keating, a $100 million Canadian success story which up until now, has prospered solely by helping U.S.-based technology companies to expand their presence and marketshare in Canada.

“This is the first time we have been called on to help a Canadian company to build marketshare in Canada. It sets a whole new precedent for how Canadian companies conduct business in their own back yard,”says president Larry Keating. “It’s a model which in this case makes a great deal of sense, because they have a great product mix and we’re a very strong sales, marketing and support company. With this synergy at work, we expect Celestica’s sales to ramp up to double-digit growth by the end of the year.”

Celestica is a global memory manufacturer and is one of three leading worldwide participants in the rapidly expanding electronics manufacturing services industry. The company provides a full range of services, including design, prototyping, assembly, testing, product assurance, worldwide distribution and after-sales service to its customers in the computer, telecommunications and related industries.

With annual revenues of over $3 billion CDN, Celestica has more than 6,000 employees worldwide. Headquartered in Toronto, Canada, Celestica has 1.5 million square feet of manufacturing capacity with over 45 surface mount technology lines. Celestica is the largest European-based provider of electronics manufacturing services through several manufacturing sites in the U.K. Celestica also has a design facility in New York state and a manufacturing operation in Irvine, California.

Keating Technologies Inc., celebrating its tenth anniversary, is Canada’s leading manufacturers’ representative in the microcomputer industry. The company provides integrated sales, marketing, and customer support services through offices in Vancouver, Toronto, and Montreal. Keating Technologies works with distributor and reseller partners to bring technology products and services to the Canadian consumer through the retail, corporate, government, and education markets. Keating Technologies is the exclusive representative of Celestica; Norton-Lambert; Storm Technology; Trusted Information Systems; 3Com Corp., Client Access Products, Retail Sales; and Xircom.