DOWNERS GROVE, Ill., Jan. 9, 2008 (PRIME NEWSWIRE) -- Aftermarket Technology Corp. (ATC) (Nasdaq:ATAC) today announced that it has signed a multi-year contract with TomTom Inc., making TomTom one of the Company's largest customers. TomTom is the world's largest portable navigation solutions provider and is a leading supplier of portable GPS devices to consumers in the U.S. TomTom has had a contractual agreement with ATC since October 2006.
Under the terms of the new contract, ATC will provide complete supply chain support for TomTom's entire product line. ATC will manage the acquisition of packaging materials and accessories used in the kitting process for all TomTom products, provide distribution services to national retailers such as Best Buy and Circuit City, and manage the returns, test and repair side of reverse logistics. Using its state-of-the art processes, ATC will process several million units/year at its Dallas/Fort Worth facility with the program scheduled to launch in the first quarter of 2008.
"We are very proud to be a market leader in this growing category and attribute our success to our vision and our on-going commitment to our customers," said Jocelyn Vigreux, President of TomTom Inc. "The increased supply chain support from ATC will provide us with a scalable distribution solution as we continue to build both the PND category and market share in the U.S."
In commenting on the new contract, Don Johnson, Chairman, President and CEO of ATC, said, "At the time of our third quarter earnings call, we included the annual revenue value of this new contract in our total new business wins without naming our customer. Today, in conjunction with our valued customer, we are proud to announce the expansion of our relationship with a rapidly growing global company like TomTom. Our team is working closely with TomTom's marketing and operations personnel to help them achieve their market share goals in the U.S. Our total service offering to TomTom is the culmination of an extensive supply chain optimization program that has been under development between our companies for the last year. We look forward to continuing to build upon our relationship with TomTom. This win is another step forward in ATC's strategy to expand beyond the wireless industry and to continue to diversify the company's customer base and product offerings with consumer electronics clients."
ATC is headquartered in Downers Grove, Illinois. The Company provides outsourced engineered solutions and supply chain logistics services to the light and medium/heavy-duty vehicle aftermarket and consumer electronics industries.
The preceding paragraphs contain statements that are not related to historical results and are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those that are predictive or express expectations that depend upon or refer to future events or conditions, or that concern future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, or possible future Company actions. Forward-looking statements involve risks and uncertainties because such statements are based on current expectations, projections and assumptions regarding future events that may not prove to be accurate. Actual results may differ materially from those projected or implied in the forward-looking statements. The factors that could cause actual results to differ are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2006 and other filings made by the Company with the Securities and Exchange Commission.