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SMTC signs agreement with StarBak Communications

May 18, 2005

- SMTC chosen as preferred electronic manufacturing service (EMS) partner by leading provider of integrated network video solutions
- SMTC's fabrication, systems integration and configure to order capabilities deliver critical manufacturing scalability that helps StarBak meet its growth projections

SMTC Corporation (NASDAQ:SMTX/TSX:SMX) announced that it has signed a strategic outsource manufacturing agreement with StarBak Communications Inc., a leading provider of integrated network video solutions for enterprise, educational and government customers. The StarBak solution allows organizations to easily create, manage, deliver and display video-based applications over IP networks.
 
SMTC will provide full system integration, configure to order, global end-customer distribution and after sales support for StarBak's complete product line. SMTC will also work closely with StarBak to integrate into their hardware design activities to support design to cost initiatives and enhance StarBak's time to market requirements for its next generation products.

"Our selection of SMTC as the premier manufacturing arm for StarBak provides us with a world-class manufacturing solution based in Franklin, Massachusetts," commented Peter Minihane, Chief Operating and Financial Officer of StarBak. "SMTC gave us the ability to gracefully scale our business as we meet our customer's growth expectations, which was something we found extremely compelling."

"We are delighted that StarBak Communications has selected SMTC as their premier EMS provider," stated John Caldwell, SMTC President and Chief Executive Officer. "Our proven performance in the areas of system integration, build to order and configure to order, along with our cost effective product distribution services has positioned us to support both StarBak's legacy and emerging IP based technologies. We are very encouraged by the prospect of expanding the relationship as StarBak continues to enhance its unique product offerings."

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