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Automodular Settles Lease Obligation
TORONTO - December 15, 2005
Automodular Corporation ("Automodular") announces that its subsidiary Tec-Mar Distribution Services, Inc. ("Tec-Mar") has entered into an agreement to settle remaining lease obligations on a redundant facility in Lansing, Michigan. As previously disclosed, the subsidiary is closing down its Lansing operations as a result of the cancellation and expiry of certain production contracts. Production in this particular facility ends this month, and Tec-Mar’s lease had 30 months remaining. Under the terms of the settlement, Tec-Mar will make an immediate payment to the Landlord of $1,350,000 U.S. and will restore the facility to the condition required by the lease. The settlement will reduce Tec-Mar’s future facility costs by approximately $2,000,000 U.S.
Tec-Mar's remaining facility in Lansing is expected to cease operations effective mid2006. At that time, the subsidiary will cease providing services to the Lansing Grand River assembly plant; however, it will continue to service the Pontiac Truck assembly plant through its Pontiac facility.
Automodular is a supplier of sub-assembly, sequencing, transportation and logistics services to six OEM plants in Ontario, Michigan and Ohio. The Company has eight operating facilities and employs over 800 people. | 
