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Automodular Corporation: First Quarter 2011 Earnings

AJAX, ONTARIO--(Marketwire - May 12, 2011) - Automodular Corporation ("Automodular") (TSX:AM - News) reports net earnings of $3.5 million or $0.18 per share for the three months ended March 31, 2011 compared to a net loss of $(0.2) million or $(0.01) per share in the same period in 2010. Both periods were impacted by exit costs relating to the termination of certain commercial agreements. Included in the current period is $1.0 million (pre-tax) in respect of facility-related costs relating to Automodular's remaining obligations on its idle Montecorte facility. In the first quarter of 2011, Automodular reached a settlement with the landlord and has no further responsibilities for the facility. The 2010 first quarter results included a charge of $5.0 million (pre-tax) on account of exit costs and a plant and equipment impairment charge of which $4.7 million related to GM's termination of Automodular's remaining Oshawa-area contracts. GM announced the termination of the contracts in April, 2010 and production ceased in September, 2010.The Directors have declared a special dividend of $0.25 per share payable June 20, 2011, to shareholders of record June 6, 2011.Automodular is a supplier of sub-assembly, sequencing and transportation services to Ford's Oakville Assembly Plant. The Company has two operating facilities and employs approximately 500 people.