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CDS Engineering and KLN Engineering
Combine Strengths

June 6, 2005

CDS Engineering, LLC, based in San Carlos, California and KLN Engineering Corporation (KLN) based in Fremont, California announced today the completion of their agreement to combine the business of KLN with CDS Engineering. The strengths of KLN will join the significant and growing network of CDS manufacturing companies serving the semiconductor capital equipment, medical equipment, aviation, oil exploration, and other high technology industries. The transaction was completed June 6, 2005.

Founded in 1983 by its current President, Kiet Nguyen, KLN has grown to become one of the Silicon Valley’s largest, independent machining and assembly companies. KLN is strategically located near the heart of Silicon Valley in Fremont, California and provides complex chambers and associated components to its national and international customers. Founder Kiet Nguyen and other key members of the KLN team will remain with CDS Engineering after the transaction.

CDS Engineering, with headquarters in San Carlos, California, is a privately owned manufacturing and service company providing precision components, vacuum chambers and subassemblies to customers in the medical equipment, semiconductor process equipment, analytical, flat panel equipment, and aviation markets. With more than 40 years of experience in operating manufacturing and engineering service businesses, the manufacturing team and state of the art factories of CDS maintain a strong reputation for manufacturing, engineering, customer service, quality and innovation.

Victor P. Smith, President and Chief Executive Officer of CDS Engineering, states “The combination of CDS and KLN will provide substantial operational synergies in the Bay Area and will expand the breadth and depth of our customer relationships. We are excited about the prospect of KLN manufacturing and engineering teams joining the CDS family because of the people, their proven track record and great reputation for meeting the technical challenges of its customers.”

CDS Engineering currently operates manufacturing and assembly facilities in three geographic areas: California, Texas, and the United Kingdom.

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