Suntron Completes Sale/Leaseback of Texas Facility and Refinancing

Phoenix, AZ., March 31, 2006 -- Suntron Corporation (NASDAQ SCM: SUNN), a leading provider of integrated electronics manufacturing solutions, today announced that on March 30, 2006 Suntron completed the sale of its building and land in Sugar Land, Texas and the refinancing of its credit facility.

The company received net proceeds of approximately $16.8 million from the sale of its building and land in Sugar Land, Texas, which was used to repay a portion of its outstanding debt. Concurrent with the sale, the company entered into a seven-year operating lease agreement for approximately 50% of the building. This transaction allows Suntron to reduce its outstanding debt levels and right size its manufacturing footprint. Suntron also expects to benefit from eliminating future interest costs and the fixed overhead costs related to the portion of the building that was not utilized.

Concurrent with the sale, Suntron also completed a refinancing of its credit facility. The company entered into a new three-year, $50.0 million credit facility. Upon the closing of the refinancing, the outstanding principal balance on the new credit facility was approximately $24 million, with unused borrowing availability of approximately $18 million.

In addition, Suntron also entered into a $10 million secured subordinated note purchase agreement with Thayer Equity Investors IV, L.P. ("Thayer"), an affiliate of Suntron's majority stockholder. Thayer agreed to make additional secured subordinated loans of up to $5 million should the company fail to comply with the financial covenants in its new credit facility. Under the terms of the secured subordinated loan, the outstanding principal balance plus all accrued interest is due in May 2009.

In commenting on the refinancing, Paul Singh, Suntron's president and chief executive officer said, "The completion of these transactions provides a long-term solution to our capital structure by significantly reducing the outstanding debt of the company. It gives us the financial flexibility to continue to grow our business and provide our customers with the highest quality solutions. Our ability to refinance our indebtedness also demonstrates the confidence that our majority stockholder and lenders have in our operating strategy."

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, and large scale and complex system integration and test. The Company has approximately 1,730 employees and contract workers.

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