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XeTel Standardizes on Valor CAM and DFM Tools for Automated NPI Strategy

Jan 25, 2002

APEX 2002 � San Diego, January 23 2002 - Valor Computerized Systems (Neuer Markt: VCR) has been selected by XeTel Corporation (Nasdaq: XTEL), one of the leading electronics manufacturing services (EMS) companies in North America, to deploy its Trilogy 5000 assembly and test engineering systems and Enterprise 3000 DFM software at the core of their new, fully automated NPI strategy.

XeTel provides a single source electronics manufacturing solution spanning full-service design and prototype services, logistics management, and sophisticated surface mount assembly, through to test engineering and product integration.

As OEMs continue to outsource their products suffering from pressures to reduce time-to-market and eliminate the manufacturing learning curve associated with complex new product introductions, XeTel has transitioned itself into a �virtual OEM manufacturing organization� in order to serve the existing and future needs of their customers and provide a single source solution from design through prototyping to manufacture. As part of this enterprise-wide expansion, XeTel needed to implement a fully automated, repeatable and accurate NPI process eliminating the traditional islands of independent data processing. Through this NPI strategy, XeTel also wanted to realize an enhanced and automated DFM analysis process that could handle the physical attributes of the components and full graphical reporting, thereby replacing manual and time consuming routines.

Following an extensive tool evaluation, XeTel selected Valor�s CAM and DFM products to meet their new NPI strategy criteria, automate their DFM/DFT processes and extend support for customers earlier in the product lifecycle. The Valor systems will be installed at the Austin (TX) based manufacturing headquarters as their front-end engineering toolset and also utilized by their manufacturing center sited in Dallas. In addition, XeTel�s design services team will access the systems for full-automated DFM analysis during the product design cycle.

�Valor�s tools form the backbone of our entire NPI process and DFM strategy. Valor�s automation and integration capabilities provide Xetel with a proven, systematic process that is both accurate and repeatable. The Trilogy 5000 and Enterprise 3000 products are based on the intelligent ODB++ data format which was a key aspect for us selecting Valor as our DFM partner,� said Angelo DeCaro, Jr., XeTel�s president and CEO.

�ODB++ provides a vital link and allows us to effectively communicate and share high level product data between XeTel�s new design center, our OEM customers and our manufacturing (prototype and production) facilities for an efficient process flow. Our audit showed that the Valor DFM analysis tools will significantly improve exchanging verified manufacturing data (ERF files) with our customers which will positively affect our DFM revenue streams by providing optimized and robust CAD/CAM data into production, to reduce manufacturing ramp-up times, reworks and overall product costs,� DeCaro added.

�Increasingly we are proving that the Valor toolset brings even greater benefits to EMS companies, like XeTel, who offer a fully integrated, front-to-back solution. Using ODB++ as the common data exchange format between design, production and the OEM customer throughout the supply chain, provides the most efficient and effective product realization process that accelerates time-to-market while simultaneously increasing quality and manufacturability. XeTel predicts that they will see payback on their investment in our tools in less than a year,� added Chuck Feingold, president at Valor, Inc.

About XeTel

Founded in 1984, XeTel Corporation is ranked among the top 50 electronics manufacturing services industry providers in North America. The company provides highly customized and comprehensive electronics manufacturing, engineering and supply chain solutions to Fortune 500 and emerging original equipment manufacturers primarily in the networking, computer and telecommunications industries. XeTel provides advanced design and prototype services, manufactures sophisticated surface mount assemblies and supplies turnkey solutions to original equipment manufacturers. Incorporating its design and prototype services, assembly capabilities, together with materials and supply base management, advanced testing, systems integration and order fulfillment services; XeTel provides total solutions for its customers. XeTel employs over 300 people and is headquartered in Austin, Texas with manufacturing services operations in Austin and Dallas, Texas. For more information, visit XeTel�s web site at http://www.xetel.com.

About Valor

Valor is a global leader in providing business productivity tools throughout the design-through-manufacturing electronics supply chain. Valor is a public company listed on the Neuer Markt of the Frankfurt Stock Exchange. The company's powerful software tools, based on ODB++, the Valor-funded data format which has quickly become the format of choice for high-level data exchange, ensure the rapid transfer of optimized data from design through manufacturing. Enterprise 3000 DFx system for physical design verification, Trilogy 5000 for assembly and test engineering, and the unique Valor Parts Library on-line data service are utilized by designers and engineers to deliver enhanced productivity, higher yields, shorter cycle times and increased product quality. All Valor products are sold and supported by a worldwide network that includes global subsidiary offices, VARs and OEM channels. More information about the company can be found at http://www.valor.com.

For more information please contact:

Valor Corporate

Cathryn Hage

Pentacom Public Relations

Tel: +44 (0)1242 525205

cathryn.hage@pentacomagency.com

Valor North America

Chris Hyder

Valor Computerized Systems, Inc.

Tel: +1 (949) 586 5969

chris.hyder@valor-us.com

Valor Europe

Sharon Graves

PentaCom Public Relations

Tel: +44 (0)1242 525205

sharon.graves@pentacomagency.com

Valor Far East

Ofer Shofman

Valor Computerized Systems

Tel: +(852) 2-731 6108

ofer@valor.com

XeTel Corporation, Austin

Angelo DeCaro, Jr.

Tel: +1 (512) 435 1100

adecaro@xetel.com

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