Gross profit for the second quarter of 2006 improved to $6.2 million, compared to $3.9 million in the second quarter of 2005. As a percentage of net sales, gross profit improved to 7.3% for the second quarter of 2006, compared to 4.7% on net sales of $81.8 million in the second quarter of 2005. This improvement in gross profit for the second quarter of 2006 was primarily attributable to the cumulative impact of restructuring and cost containment actions that were initiated throughout 2005 and supplemented by a 4% increase in net sales. Sequentially, gross profit as a percentage of sales decreased from 8.4% on net sales of $95.8 million in the first quarter of 2006. Net sales for the first quarter of 2006 included a one-time spike in sales to a customer in the industrial market sector.

Operating loss for the second quarter of 2006 improved by $2.7 million to $0.4 million, compared to an operating loss of $3.1 million for the second quarter of 2005. For the first quarter of 2006, operating income was $1.7 million, which was primarily attributable to incremental gross profit associated with higher net sales.

Net loss for the second quarter of 2006 was $1.3 million, an improvement of $2.4 million compared to the second quarter of 2005. Consequently, loss per share improved by $0.09 per share to a loss of $0.05 per share for the second quarter of 2006. For the first quarter of 2006, net loss was $1.1 million and loss per share was $0.04 per share.

“Though we continue to see positive results from the cost reduction initiatives we took in 2005 we remain focused on right-sizing the business and improving the utilization of our assets,” stated Paul Singh, Suntron’s president and chief executive officer. “In the first six months of 2006, we have refinanced our credit facility, obtained a secured subordinated loan from an affiliate of our majority stockholder, sold a building and land in Sugar Land, Texas and initiated the right-sizing of our operations in the Northeast. These actions have helped reduce the Company’s outstanding debt by approximately $15 million since the beginning of 2006 and enhanced our borrowing availability to support profitable future growth,” added Mr. Singh.

“Additionally, our refocused sales and marketing efforts have resulted in increased new product introduction and new customer activity that provides us with several opportunities for future growth, including the addition of four new customers during the quarter. However, as we look ahead to the third quarter of 2006, we expect net sales will be in the range of $71 million to $75 million reflecting the delay in the ramp-up of certain new programs and the seasonality with certain customers. While we remain focused on right-sizing our fixed cost structure, our management team is committed to continuing to exceed customer expectations and improve operating performance, ” concluded Mr. Singh.

About Suntron Corporation
Suntron delivers complete manufacturing services and solutions to support the entire life cycle of complex products in the aerospace and defense, industrial, semiconductor capital equipment, networking and telecommunications, and medical markets. Headquartered in Phoenix, Arizona, Suntron operates seven full-service manufacturing facilities and two quick-turn manufacturing facilities in North America. Suntron is involved in product design, engineering services, cable and harness production, printed circuit card assembly, box build, large scale and complex system integration and test. The Company has approximately 1,680 employees and contract workers.

Non-GAAP Information
In addition to disclosing results determined in accordance with generally accepted accounting principles (GAAP), Suntron also discloses certain non-GAAP results of operations that exclude certain items. These non-GAAP financial data are provided to facilitate meaningful period-to-period comparisons of underlying operational performance by eliminating infrequent or unusual charges. The primary measure of our operating performance is net income (loss). However, the Company’s lenders, internal management and many investment analysts believe that other measures provide additional information to further analyze the company’s financial performance. Additionally, in evaluating alternative measures of operating performance, it is important to understand that there are no standards for these calculations. Accordingly, the lack of standards can result in subjective determinations by management about which items may be excluded from the calculations, as well as the potential for inconsistencies between different companies that have similarly titled alternative measures. See the tables to this press release for a reconciliation of GAAP amounts to non-GAAP amounts.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements that relate to future events or performance. These statements reflect Suntron's current expectations, and Suntron does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond Suntron's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, general economic conditions and specific conditions in the electronics industry, including the aerospace and semiconductor capital equipment market segments of the electronics industry; Suntron's dependence upon a small number of customers; the Company's ability to attract new customers and retain existing customers; cash availability/liquidity; changes or cancellations in customer orders; the risks inherent with predicting cash flows, revenue and earnings outcomes as well as other factors identified as "Risk Factors" or otherwise described in Suntron's filings with the Securities and Exchange Commission from time to time.

Visit www.suntroncorp.com or call 888-520-3382 for more information.

Contact:

Suntron Corporation
Paul Singh, President and CEO
Thomas B. Sabol, Chief Financial Officer
602-789-6600
ir@suntroncorp.com