Astronics Corporation Completes the Sale of its Semiconductor System Level Test Technology

EAST AURORA, N.Y.–(BUSINESS WIRE)–Astronics
Corporation
(Nasdaq:ATRO), a leading provider of advanced
technologies for the global aerospace, defense, and semiconductor
industries, announced today that it has closed the previously announced
sale of the intellectual property and certain assets associated with its
semiconductor test product line to Advantest Corporation (TSE: 6857).

The terms of the transaction were renegotiated due to a change in
business conditions related to the product line. The new terms include
an upfront payment of $100 million in cash, plus a potential earn-out
payment of up to $35 million based on certain performance milestones
over the next 4 years. This compares with the previously announced $185
million purchase price, plus an earn-out payment of up to $30 million
based on certain performance milestones. The renegotiated sales
agreement does not include a manufacturing service contract as
previously announced.

Peter J. Gundermann, President and CEO of Astronics, commented, “We have
strong confidence in Advantest’s ability to further the adoption of
these solutions across the semiconductor industry and expect that the
team and competencies we have developed will achieve new highs under
their ownership. We will continue to develop and advance our aerospace &
defense test solutions while employing our multi-system test software
capabilities in a variety of applications.”

ABOUT ASTRONICS CORPORATION

Astronics Corporation (Nasdaq:ATRO) serves the world’s aerospace,
defense and semiconductor industries with proven, innovative technology
solutions. Astronics works side-by-side with customers, integrating its
array of power, connectivity, lighting, structures, interiors, and test
technologies to solve complex challenges. For 50 years, Astronics has
delivered creative, customer-focused solutions with exceptional
responsiveness. Today, global airframe manufacturers, airlines, military
branches, completion centers, and Fortune 500 companies rely on the
collaborative spirit and innovation of Astronics.

For more information on Astronics and its solutions, visit Astronics.com.

SAFE HARBOR STATEMENT

This news release contains forward-looking statements as defined by the
Securities Exchange Act of 1934. One can identify these forward-looking
statements by the use of the words “expect,” “anticipate,” “plan,”
“may,” “will,” “estimate” or other similar expressions. Because such
statements apply to future events, they are subject to risks and
uncertainties that could cause actual results to differ materially from
those contemplated by the statements. Important factors that could cause
actual results to differ materially from what may be stated here include
the duration of the transition services agreement, the future success of
the test technology, the opportunities with the aerospace & defense test
business, the applications of the multi-system test software
capabilities, the state of the aerospace & defense industries, the
market acceptance of newly developed products, internal production
capabilities, the timing of orders received, the status of customer
certification processes and delivery schedules, the demand for and
market acceptance of new or existing aircraft which contain the
Company’s products, the need for new and advanced test and simulation
equipment, customer preferences and other factors which are described in
filings by Astronics with the Securities and Exchange Commission. The
Company assumes no obligation to update forward-looking information in
this news release whether to reflect changed assumptions, the occurrence
of unanticipated events or changes in future operating results,
financial conditions or prospects, or otherwise.

Contacts

Company
David C. Burney
Chief
Financial Officer, Astronics Corporation
[email protected]
+1.716.805.1599

Investor Relations
Deborah K.
Pawlowski
Investor Relations, KEI Advisors
[email protected]
+1.716.843.3908

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