* Expects to record severance and related costs of approximately $1.5    million pre-tax or $0.05 per diluted share after tax in the second    half of 2009  * Wins remanufactured engine programs expected to contribute $15-$17    million in annualized revenue  * Now expects low single- digit Drivetrain segment profit margin  * Announces second quarter earnings conference call 

DOWNERS GROVE, Ill., July 21, 2009 (GLOBE NEWSWIRE) -- ATC Technology Corporation (ATC) (Nasdaq:ATAC), today announced additional restructuring actions to reduce operating costs of its Drivetrain business resulting from the pending loss of the Honda transmission remanufacturing program that include additional workforce reductions and consolidation of certain warehousing activities. The Company expects these actions to result in pre-tax charges of approximately $1.5 million or $0.05 per diluted share after tax in the second half of the year for severance and related costs. These charges are in addition to the previously announced pre-tax goodwill impairment charge of $37 million, or $1.32 per share after tax, to be recorded in the second quarter of 2009. The Company's previously announced restructuring actions, which are substantially complete, total $5.3 million pre-tax or $0.17 per diluted share after tax year- to- date.

Todd R. Peters, President and CEO said, "While the restructuring actions announced today will only partially mitigate the impact of Honda's decision to in-source the remanufacturing of automatic transmissions, I am pleased to share the news that ATC has been awarded contracts with two existing customers, Chrysler and Subaru, to supply remanufactured engines and related components in North America in support of both warranty and customer-pay programs. The addition of remanufactured engines and related components strengthens our product profile in North America and is a natural extension of our capabilities. The remanufacturing for these programs, slated to launch during the third quarter, will be performed at our Oklahoma City facility. These programs have been in development since late 2008 but finalization of the contracts was delayed pending Chrysler's successful emergence from bankruptcy. These engine programs, expected to partially mitigate the impending loss of Honda remanufactured transmissions, are expected to contribute approximately $15-$17 million in annualized revenue. For 2009, we expect them to contribute approximately $7-$8 million of revenue with no impact on segment profit due to projected inefficiencies related to the launch and start-up of the new programs.