NEWS RELEASE
SEPTEMBER 6, 2000
CIRCUIT SYSTEMS, INC. ANNOUNCES
PRE-NEGOTIATED CHAPTER 11 FILING
Circuit Systems, Inc. (NASDAQ: CSYI), announced today it has initiated
a Chapter 11 case for the purpose of implementing a pre-negotiated
restructuring plan with its primary lender, LaSalle National Bank.
"We are excited about the future of Circuit Systems" said President and
CEO D.S. Patel. "Through the sale of our Silicon Valley high tech, time-
critical delivery facility, and the recent closing of our unprofitable
Tennessee facility, we will reduce our debt level substantially. This will
allow us to refocus on our core Illinois printed circuit board manufacturing
business, which has always been a solid performer."
Circuit Systems will be seeking approval of the Bankruptcy Court for
restructuring financing from LaSalle, "We are pleased to have LaSalle's
cooperation," said Patel, "as it allows us to have stable financing
available to fund on-going operations until our exit from Chapter 11."
Patel indicated that the company's reorganization plan would be on file
with the court shortly and that a prompt approval process was anticipated.
Brent I. Kugman & Associates is serving as financial advisor and the Chicago
office of Greenberg Traurig LLP is serving as legal counsel to Circuit
Systems.
Headquartered in Elk Grove Village, Illinois, Circuit Systems, Inc. is
a manufacturer of single-sided, double-sided and multilayer printed circuit
boards in low to high volumes. The Company operates printed circuit board
manufacturing facilities in Elk Grove Village and Antioch, Illinois,
Greeneville, Tennessee and Santa Clara, California. Infovision, the
Company's information technology solutions and service provider subsidiary,
operates from the Company's administrative headquarters in Elk Grove
Village, Illinois and maintains a satellite and training office in Layton,
Utah.
Note: To the extent any statements in this press release may be deemed
to be forward-looking, such statements should be evaluated in the context of
the risks and uncertainties inherent in the Company's business which
include, but are not limited to, those discussed herein, as well as those
discussed in the Company's Annual Report on From 10-K or in other filings or
statements made by or on behalf of the Company. Readers are cautioned not to
place undue reliance on these forward-looking statements, which may be
inaccurate. Actual events or results may differ materially. Although the
Company believes that the expectations reflected in the forward-looking
statements are reasonable, the Company cannot guarantee future results,
performance or achievements. The Company undertakes no obligation to
publicly release any updates or revisions to these forward-looking
statements, which may be made to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
