EXHIBIT 99.1
FOR IMMEDIATE RELEASE
______________________
From: SMTEK International, Inc. Contact: Rick Vitelle
2151 Anchor Court Chief Financial Officer
Thousand Oaks, CA 91320 (805) 376-2595
or
FOLEY/FREISLEBEN LLC
John Foley
213/955-0020
SMTEK International Plans Transition to Nasdaq
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THOUSAND OAKS, CALIFORNIA (June 14, 1999) - SMTEK International, Inc.
(NYSE: SMK) today announced that its board of directors has elected to
transfer its common stock listing from the New York Stock Exchange to the
Nasdaq SmallCap Market. SMTEK filed its listing application with Nasdaq
following stockholder approval on May 20, 1999 of the Company's now
completed 1-for-20 reverse split of its common stock. The Company also
expects that its common stock will continue to trade on the Pacific
Exchange.
Richard K. Vitelle, SMTEK's vice president of finance and
administration and chief financial officer, commented: "SMTEK has
returned to consistent profitability and significantly strengthened its
balance sheet over the past several years. Nonetheless, we were advised
by the New York Stock Exchange that its financial requirements for
continued listing were going to be raised substantially, and it was not
clear that the Company would be able to attain these new standards within
the time period required by the NYSE. For this reason, we decided to
transfer our listing to the Nasdaq SmallCap Market.
"We believe that transferring to Nasdaq could bolster investor
confidence with regard to listing continuity by placing us in a trading
environment in which we meet listing requirements. We also feel that
having multiple market makers could enhance the overall liquidity and
marketability of our common stock.
Vitelle continued: "We believe that following the reverse stock
split, which was effective on May 24, 1999, the Company meets all of the
initial listing requirements for Nasdaq's SmallCap Market. However, we do
not expect clearance from Nasdaq until late June or early July. The New
York Stock Exchange is working with the Company in this transition
process, and has agreed to allow SMTEK's shares to continue trading on
the NYSE until July 9, 1999, or such earlier date that our common stock
begins trading on Nasdaq. Our primary efforts are directed at working
toward an orderly transition to Nasdaq, and we expect no interruption in
trading."
Headquartered in Thousand Oaks, California, SMTEK International, Inc.
is an electronics manufacturing services (EMS) provider serving original
equipment manufacturers (OEMs) in the computer, telecommunications,
instrumentation, medical, industrial and aerospace industries. The
Company also fabricates multilayer printed circuit boards (PCBs) for use
in the same industries serviced by the Company's EMS operations. The
Company's EMS operations are located in Thousand Oaks, California, San
Diego, California, Fort Lauderdale, Florida and Craigavon, Northern
Ireland. Its PCB facilities are located in Craigavon, Northern Ireland.
Certain statements made above are forward-looking in nature and
reflect SMTEK International, Inc.'s current expectations. Such statements
include words like "plan", "believe", "expect", "may", "will", and similar
expressions. These statements involve various risks and uncertainties and
there can be no guarantees that such statements will prove to be correct.
Factors that might cause such expectations not to be achieved include the
possibility that the Company's Nasdaq application might not be approved in
time for the Company's common stock to begin trading on the Nasdaq
SmallCap Market before its shares cease to be listed on the NYSE, and the
possibility that Nasdaq may ultimately not approve the Company's
application or maintain that listing, or the possibility that there will
not be market makers for the Company's securities sufficient to provide
liquidity and marketability.
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