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[EFTC LOGO]                                                   CORPORATE CONTACTS
                                                                       CONTACTS:
                                                     JIM BASS, PRESIDENT AND CEO
FOR IMMEDIATE RELEASE                                               602-282-5058
                                                               PETER HARPER, CFO
                                                                    602-282-5201


                           EFTC CORPORATION ANNOUNCES
                        EXECUTION OF MERGER AGREEMENT FOR
                   BUSINESS COMBINATION WITH K*TEC ELECTRONICS

PHOENIX, AZ, MAY 2, 2001 - - EFTC CORPORATION (NASDAQ: EFTC), a leading provider
of high mix electronics manufacturing services, announced today that it has
signed a definitive merger agreement with K*TEC Electronics Corporation that
will result in a business combination of these two electronic manufacturing
services companies The terms of merger agreement were negotiated on behalf of
EFTC by a special committee of independent directors. J.P. Morgan H & Q, a
division of Chase Securities, Inc., served as financial advisor to EFTC's
special committee.

Pursuant to the merger agreement, a newly formed Delaware holding company will
exchange its' stock for all of the outstanding capital stock of EFTC and K*TEC.
Following completion of the transaction, EFTC and K*TEC will be wholly owned
subsidiaries of the holding company, whose common stock is expected to be traded
on the Nasdaq National Market. Based upon the merger agreement's exchange
ratios, it is expected that shareholders of K*TEC will receive approximately 55%
of the public holding company's capital stock, while EFTC shareholders will
receive approximately 45% of the shares. In connection with the transaction,
EFTC's Series B preferred stock and the senior convertible notes held by
Thayer-BLUM Funding L.L.P will be converted into common stock of EFTC on or
before May 31, 2001.

The current directors of EFTC will serve as the directors of the holding company
following the merger. In addition, Jim Bass, President and Chief Executive
Officer of EFTC, will become President and Chief Executive Officer of the
holding company. The name of the new holding company has yet to be determined.

"We are very enthusiastic about the opportunity to combine forces with K*TEC,
recognized as a leader in high mix manufacturing services," said Mr. Bass.
"K*TEC's core competencies in program management, cable assembly and
electromechanical assembly, as well as its focus on final integration, will
allow EFTC to expand its product offerings to include a complete array of EMS
services. The addition of K*TEC will also diversify our customer base and
provide a broader geographic base from which we can expand our presence in the
aerospace, medical, communications, semiconductor capital equipment and
networking industries. Our Board of Directors' unanimous endorsement of this
business combination underscores our belief that these compelling strategic
opportunities will make the transaction good for our shareholders, customers and
employees," Bass concluded.

Jeffrey W. Goettman, Chairman of the Board of K*TEC, added, "This transaction
will provide the combined entity with significant scale and strategic
advantages. We expect the increased purchasing power of the combined entity to
reduce future material costs and that the increase in scale will also improve
access to capital markets. In addition, by pooling complementary expertise and
sharing best practices across the two
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organizations, the combined entity will be able to offer enhanced capabilities
to customers and increased value to shareholders. EFTC and K*TEC share a common
vision and we believe that it makes enormous sense to put our businesses
together."

Consummation of the proposed business combination is subject to a number of
closing conditions, including approval by EFTC's shareholders. Consequently,
there can be no assurance that the business combination will be consummated.

J.P. Morgan H & Q has rendered an opinion to EFTC's Special Committee to the
effect that the terms of the business combination are fair to EFTC's minority
shareholders from a financial point of view. Such fairness opinion was addressed
and delivered solely to the special committee of EFTC's board of directors and
may not be relied upon by any other party. Any conclusions contained in such
fairness opinion are based on all analyses and factors taken as a whole. Those
conclusions may involve significant elements of subjective judgment and
qualitative analysis, and therefore must be examined in such context. Further
information concerning the opinion will be included in the Joint Proxy
Statement/Prospectus.

                                   * * * * *

EFTC Corporation is an electronics manufacturing services company providing
high-mix solutions for the aerospace, industrial controls and instrumentation,
medical, semiconductor, networking and telecommunications industries. The
Company's services include assembling complex printed circuit boards, cables,
electromechanical devices and finished products in a flexible manufacturing
environment. Headquartered in Phoenix, Arizona, EFTC employs approximately 1,800
people at seven manufacturing sites nationwide.

K*TEC is a privately held electronic manufacturing services company controlled
by an affiliate of Thayer-BLUM Funding L.L.P. (EFTC's principal shareholder).
K*TEC provides vertically integrated electronic manufacturing services and
products primarily to OEM customers in the semiconductor capital equipment and
networking segments. K*TEC employs approximately 1,800 people at manufacturing
sites located in Austin, Dallas, and Sugar Land, Texas as well as Fremont,
California.

                   ADDITIONAL INFORMATION AND WHERE TO FIND IT

This press release is neither an offer to sell nor a solicitation of an offer to
purchase securities and is not a substitute for the Registration Statement on
SEC Form S-4 to be filed in connection with the business combination. The
holding company and EFTC expect to mail a Joint Proxy Statement/Prospectus to
EFTC's shareholders containing information about the business combination.
Investors and shareholders are urged to read the Registration Statement and the
Joint Proxy Statement/Prospectus carefully when they become available. The
Registration Statement and the Joint Proxy Statement/Prospectus will contain
important information about the business combination, EFTC, K*TEC, and the
combined entity. Investors and shareholders will be able to obtain copies of
these documents free of charge through the web site maintained by the U.S.
Securities and Exchange Commission at http://www.sec.gov. Free copies of the
Registration Statement and Joint Proxy Statement/Prospectus may also be obtained
from EFTC by directing a request to the respective EFTC contacts listed below.

In addition to the Registration Statement and the Joint Proxy
Statement/Prospectus, EFTC files annual, quarterly, and special reports; proxy
statements; and other information with the Securities and Exchange Commission.
You may read and copy any reports, statements, or other information filed by
EFTC at the SEC public reference rooms at 450 Fifth Street, N.W., Washington,
D.C. 20549 or at any of the Commission's other public reference rooms in New
York, New York and Chicago, Illinois. Please call the Commission at
1-800-SEC-0330 for further information on the public reference rooms. EFTC's
filings with the Commission are also available to the public from commercial
document retrieval services and at the web site maintained by the Commission at
http://www.sec.gov.


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EFTC and its directors and executive officers may be deemed to be participants
in the solicitation of proxies from the shareholders of EFTC in connection with
the business combination. Information about the directors and executive officers
of EFTC and their ownership of EFTC stock will be set forth in the Joint Proxy
Statement/Prospectus. Additional information regarding the interests of those
participants may be obtained by reading the definitive Joint Proxy
Statement/Prospectus regarding the proposed transaction when it becomes
available.

                           FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements that relate to future events or
performance. These statements reflect EFTC's current expectations, and EFTC 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 EFTC'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, EFTC's dependence upon the
electronics industry, EFTC's dependence upon a small number of customers, the
ability to successfully integrate the management, systems, and businesses of
EFTC and K*Tec as well as other factors identified as "Risk Factors" or
otherwise described in EFTC's filings with the Commission from time to time.

                                   * * * * * *

EFTC Contacts:     Jim Bass                 Peter Harper
                   President and CEO        CFO
                   (602) 282-5058           (602) 282-5201

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