GROUP TECHNOLOGIES OFFERS FOREIGN TRADE ZONE STATUS TO CUSTOMER OEMS

OEMs With Global Or Domestic Sales Can Avoid Tariffs, Increase
Competitiveness, Reduce Inventory By Using Contract Manufacturer's FTZ

Tampa, FL -- March 14, 1994 -- Group Technologies, the fifth largest
independent contract manufacturer globally with combined annual sales of
over $300 million, has been awarded Foreign Trade Zone (FTZ) status by the
FTZ Board of the U.S. Commerce Department. This designation allows Group
Technologies to offer customers a way to avoid tariffs on imported
components and exported final assemblies.

An FTZ is an area deemed to be outside the U.S. customs territory. Assembly
components can be imported into the FTZ duty-free, and can be stored,
manufactured, repackaged, exhibited or combined with other domestic goods
to qualify for a lower duty if marketed domestically, or can escape duty
altogether if exported as an assembled product.

Carl McCormick, Group Technologies' president and CEO, said, "Exporting
assembled products from an FTZ can save the OEM on an average two to five
percent in materials costs. Even if the product is to be sold
domestically, the duties calculated on subsystems versus components can
also result in an average savings of one to three percent in materials
costs. In addition, manufacturers can save substantial amounts of raw
materials inventory by consolidating materials in one FTZ location,
instead of in multiple facilities located globally, and do not have to pay
duty on scrapped parts."

In addition, duties are not owed on labor, overhead or profit attributed to
an FTZ production operation, and delays in customs clearances, lost
shipments, and duty-paperwork on returned goods are eliminated.

While Foreign Trade Zones are common in the automotive and other
industries, they are relatively new to the electronics industry.

"By establishing an FTZ , we are helping our customers to be more
competitive in a global market. Combined with the assembly advantages that
we can offer multiple Surface Mount Technology lines and our new
Chip-On-Board (COB) line, outsourcing to a contract manufacturer like
Group Technologies makes good financial sense," said McCormick.

Group Technologies' contract manufacturing services specialize in ASIC
through system level design, materials management, and capabilities
extending from surface mount technology, through-hole printed circuit
board assembly to systems assembly. All products are manufactured to
applicable high reliability standards -- the most extensive list in the
industry. Group Technologies has been independently certified to ISO 9001,
one of the few global contract manufacturers to be so accredited. The
company also employs the greatest number of engineers as a percentage of
total workforce of any contract manufacturer.

Group Technologies Corporation was founded 29 years ago as a division of
Honeywell, and became an independent company five years ago. The company's
growth to an estimated $300 million-plus for calendar year 1994 is based
on the dramatic growth of the contract manufacturing market, along with
internal growth from market diversification and acquisitions. In 1993, the
company purchased Philips Circuit Assemblies, a leading electronic
contract manufacturer based in Tampa.

Group Technologies employs over 2000 people at two locations in Tampa,
Florida, and an additional 300 people at Denver-based Metrum, Inc., a
wholly owned subsidiary.

Group Technologies Corp
10901 Malcolm McKinley Dr, Tampa, FL 33612
813-972-6542

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