MFLEX Announces Expansion Satellite Facility in Malaysia

Turnkey facility will support the Company's high-mix/low-volume assembly
manufacturing business

ANAHEIM, Calif., Aug. 27 /PRNewswire-FirstCall/ -- Multi-Fineline
Electronix, Inc. (Nasdaq: MFLX), a leading global provider of high-quality,
technologically advanced flexible printed circuit and value-added component
assembly solutions to the electronics industry, today announced it has signed
agreements to lease a 117,000 square foot facility in Pontian, Johor Darul
Takzim, Malaysia and to purchase manufacturing equipment located at the
facility for approximately $1 million. The facility is currently owned by
Wearnes Electronics Malaysia, an electronics manufacturing and assembly
services provider and subsidiary of WBL Corporation Limited, which is MFLEX's
largest shareholder. In addition, MFLEX will also offer employment to
approximately 125 employees currently employed by or contracted to Wearnes
Electronics. The new facility is expected to become operational in December
2008.
MFLEX intends to transfer its high-mix/low-volume assembly manufacturing
currently performed at its headquarters in Anaheim, California and facilities
in Suzhou, China to this new facility. MFLEX will run the leased facility as
a satellite operation to provide additional assembly manufacturing capacity, a
concept that it has successfully implemented in the past to accommodate
increased demand on a just-in-time basis. The Company's high-mix/low-volume
business is comprised of programs featuring a significant number of models but
produced in limited quantities and is currently in applications for the
medical and industrial marketplace.
"In addition to providing us a geographically diversified location, we
believe these transactions will enable us to operate our high-mix/low-volume
assembly manufacturing business more efficiently and cost effectively," said
Reza Meshgin, MFLEX's president and chief executive officer. "While this
comprises a very small portion of our overall business today, we see strong
growth potential and opportunities to expand into new markets in the future.
These transactions provide MFLEX with a turnkey satellite facility and trained
workforce as we execute our strategic plan to grow our high-mix/low-volume
business."
About MFLEX
MFLEX (http://www.mflex.com) is a global provider of high-quality,
technologically advanced flexible printed circuit and value-added component
assembly solutions to the electronics industry. The Company is one of a
limited number of manufacturers that provides a seamless, integrated
end-to-end flexible printed circuit solution for customers, ranging from
design and application engineering, prototyping and high-volume manufacturing
to turnkey component assembly and testing. The Company targets its solutions
within the electronics market and, in particular, focuses on applications
where flexible printed circuits are the enabling technology in achieving a
desired size, shape, weight or functionality of an electronic device. Current
applications for the Company's products include mobile phones and smart mobile
devices, personal digital assistants, mobile power adapters, medical devices,
computer/data storage and portable bar code scanners. MFLEX's common stock is
quoted on the Nasdaq Global Select Market under the symbol MFLX.
Certain statements in this news release are forward-looking statements
that involve a number of risks and uncertainties. These forward-looking
statements include, but are not limited to, statements and predictions
regarding the Company's manufacturing operations and the movement of such
operations to different locations, including expected benefits associated with
such movement, operating expenses, profitability, the efficiency and cost
effectiveness of the Company's manufacturing locations, and market and growth
opportunities. Additional forward-looking statements include, but are not
limited to, statements pertaining to other financial items, plans, strategies
or objectives of management for future operations, the Company's future
operations and financial condition or prospects, and any other statement that
is not historical fact, including any statement which is preceded by the words
"assume," "can," "will," "plan," "expect," "estimate," "aim," "intend,"
"project," "foresee," "target," "anticipate," "may," "believe," or similar
words. Actual events or results may differ materially from those stated or
implied by the Company's forward-looking statements as a result of a variety
of factors including the impact of changes in demand for the Company's
products and the Company's success with new and current customers, the
Company's ability to develop and deliver new technologies, the Company's
ability to diversify its customer base, the Company's effectiveness in
managing manufacturing processes and costs and expansion of its operations,
the Company's ability to manage quality assurance issues, the degree to which
the Company is able to utilize available manufacturing capacity, enter into
new markets and execute its strategic plans, the impact of competition,
pricing pressures and technological advances, and other risks detailed from
time to time in the Company's SEC reports, including its Quarterly Report on
Form 10-Q for the quarter ended June 30, 2008. These forward-looking
statements represent management's judgment as of the date of this news
release. The Company disclaims any intent or obligation to update these
forward-looking statements.
SOURCE Multi-Fineline Electronix, Inc.

Lasse Glassen, Investor Relations, +1-213-486-6546,
investor_relations@mflex.com, for Multi-Fineline Electronix, Inc.