Nortech Systems to Close Facility in Augusta, Wisconsin

Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of full-service electronics manufacturing services (EMS), today announced plans to close its manufacturing facility in Augusta, Wis., by the end of 2016.

The three primary EMS markets served by Nortech Systems are industrial, medical and aerospace/defense. Since 1992, the Augusta facility has served mainly an industrial customer base and defense overflow production that aligned with their custom cable capabilities.

“Our industrial customers have been hit the hardest by the slow economy and the defense business has been impacted by major defense budget cuts over the past several years,” said Rich Wasielewski, president and CEO of Nortech Systems. “This was a difficult decision but we were unable to keep the facility open due to changing customer requirements and lower demand.”

Consolidation and restructuring costs are expected to be offset with savings and have minimal financial impact on the company’s 2016 results and become fully accretive once the consolidation has been completed.

About Nortech Systems IncorporatedNortech Systems Incorporated (www.nortechsys.com), based in Maple Grove, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies, and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial, medical and aerospace/defense. The company has operations in the U.S., Latin America and Asia. Nortech Systems Incorporated is traded on the NASDAQ Stock Market under the symbol NSYS.

Forward-Looking StatementsThis press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. While this release is based on management’s best judgment and current expectations, actual results may differ and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: volatility in market conditions which may affect market supply of and demand for the company’s products; increased competition; changes in the reliability and efficiency of operating facilities or those of third parties; risks related to availability of labor; commodity and energy cost instability; general economic, financial and business conditions that could affect the company’s financial condition and results of operations; as well as risk factors listed from time to time in the company’s filings with the SEC.

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For Nortech Systems Incorporated:Warren Djerf, 952-920-3908Brookside Communications [e-mail]