SMTC Leads Shift to Low Cost Region Manufacturing

TORONTO, Nov. 20 /PRNewswire-FirstCall/ - SMTC Corporation (Nasdaq: SMTX, TSX: SMX) ("SMTC"), a global electronics manufacturing services provider, announced today a significant expansion of its strategic relationship with Creston Electronics Inc.

Crestron is a leading manufacturer of advanced control and automation systems offering integrated solutions to control audio, video, computer, IP and environmental systems. SMTC builds a wide range of assemblies for Crestron, from single PCB assemblies to PCBAs integrated into box-build enclosures. SMTC will lead the transfer of additional Crestron products into SMTC manufacturing facilities in Toronto (Markham) and into a lower cost manufacturing region in Mexico.

"SMTC is a focused and capable outsourcing partner and a key contributor in our effort to simplify and expand our outsourcing strategy, reduce costs and eliminate supply chain challenges," said Dan Brady, General Manager, Crestron. "SMTC also offers an ideal global footprint for Crestron's low cost manufacturing objectives."

SMTC facilities are strategically located across a broad footprint in the United States, Canada, Mexico, and China. SMTC Mexico (Chihuahua) is a medium to high mix, medium to high volume 'Copy-Exact' facility servicing OEMs requiring lowest cost North America manufacturing. Manufacturing services include assembly, testing, box build, final product integration, and worldwide customer logistics. Enclosure Systems manufacturing capabilities include precision sheet metal fabrication, electromechanical assembly, system integration and test.

"We're delighted to significantly expand our business relationship with Crestron as a preferred operations partner," said John Caldwell, President and Chief Executive Officer, SMTC Corporation. "Our proven performance and our effort to drive better value earned SMTC a more substantial share of the Creston outsourcing spend. We look forward to a prosperous future with Creston Electronics."

About SMTC: SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC facilities span a broad footprint in the United States, Canada, Mexico, and China, with more than 1500 full time employees. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and emerging technology companies primarily within industrial, computing and communication market segments.

SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX and on the Toronto Stock Exchange under the symbol SMX. For further information on SMTC Corporation, please visit our website at www.smtc.com (http://www.smtc.com/)

About Crestron: Crestron is the world's leading manufacturer of advanced control and automation systems, innovating technology and reinventing the way people live and work. Offering integrated solutions to control audio, video, computer, IP and environmental systems, Crestron streamlines technology, improving the quality of life for people in corporate boardrooms, conference rooms, classrooms, auditoriums, and in their homes. (http://www.crestron.com/)

Note for Investors: The statements contained in this release that are not purely historical, including our expectations regarding continued revenue and earnings growth in 2007, are forward-looking statements which involve risk and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These statements may be identified by their use of forward-looking terminology such as "believes", "expect", "may", "should", "would", "will", "intends", "plans", "estimates", "anticipates" and similar words, and include, but are not limited to, statements regarding the expectations, intentions or strategies of SMTC Corporation. For these statements, we claim the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995. Risks and uncertainties that may cause future results to differ from forward-looking statements include the challenges of managing quickly expanding operations and integrating acquired companies, fluctuations in demand for customers' products and changes in customers' product sources, competition in the EMS industry, component shortages, and others discussed in the Company's most recent filings with securities regulators in the United States and Canada. The forward-looking statements contained in this release are made as of the date hereof and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

SOURCE SMTC Corporation

Jane Todd
 Senior Vice President Finance and Chief Financial Officer
 (905) 413-1300
 jane.todd@smtc.com