Medical Customer Praises Partnership with Nortech Systems;
Devicor Medical Products’ VP of Manufacturing Addresses
Nortech’s Annual Shareholder Meeting

MINNEAPOLIS — Nortech Systems’ annual meeting of shareholders last month featured a guest speaker who complimented Nortech Systems’ complete electronics manufacturing services and corporate growth strategy supporting medical products manufacturers.

The special guest was Tony Blair, vice president of manufacturing with Devicor Medical Products, Inc. Headquartered in Cincinnati, Devicor is a global medical products company specializing in minimally invasive technologies, including the Mammotome® and Neoprobe® brands.

Mammotome is the world’s leading breast biopsy system, sold in more than 50 countries. Neoprobe is the world’s leading lymphatic mapping gamma detection system; lymphatic mapping detects the presence of cancer cells in the lymph system.

“From a strategic standpoint, we really believe in Nortech’s business model and their commitment to support medical manufacturers like Devicor,” Blair stated.

Nortech’s facility in Milaca, Minn., has manufactured Neoprobe control units and probes – both wireless and wired – since 2003; Blair said the Milaca team is doing a great job. At the end of 2011, Devicor started using Nortech’s facility in Mankato, Minn., to supply printed circuit board assemblies (PCBAs) for the Neoprobe product.

Devicor’s newest product is the Mammotome Elite, released in mid-April. It’s a handheld vacuum-assist breast biopsy system designed for ease of use and procedural speed in a physician’s office.

The Elite Holster system is built in Milaca; Devicor brought this product to Nortech at the end of 2011 after concluding that the previous contract manufacturer did not have the manufacturing experience to build this complex medical device. Nortech supported the 510K submission process; Devicor received FDA approval in April. Nortech also ramped up manufacturing quickly, establishing and managing the supply chain and producing finished devices in just three months.

Nortech’s rigorous quality systems support the build of both Class II and III medical devices and PCBAs. Nortech is FDA registered and has extensive experience with regulatory requirements and certifications including ISO-9001 and ISO-13485.

“The Elite product launch is going very well,” commented Blair. “Nortech’s achievements exceeded our expectations in that tight timeframe.” He added, “Product quality and performance have been outstanding. Nortech’s costs are competitive and we already have some cost-reduction planning underway with them.

“I think Nortech’s service and repair capabilities are a real competitive advantage – not many contract manufacturers offer this,” continued Blair. If an issue arises in the field, customers return the product directly to Nortech for repair. Devicor is currently shifting more of this service responsibility to Nortech Systems.

“Nortech’s vertical integration works well for us – it’s really a success story,” commented Blair. He expects Devicor’s business with Nortech to more than double this year, with Nortech also manufacturing PCBAs, cables and complete devices.

“Devicor is planning to grow significantly,” Blair concluded. “Our annual revenue is roughly $170 million and we want to reach $500 million in a few years.” Devicor’s growth strategy includes both acquisitions and new product development.

About Nortech Systems Incorporated
Nortech Systems Incorporated (www.nortechsys.com), based in Wayzata, 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 equipment, aerospace/defense and medical. The company has manufacturing capabilities and operating partners in the U.S., Asia and Latin America. Nortech Systems Incorporated is traded on the NASDAQ Stock Market under the symbol NSYS.

Forward-Looking Statements
This 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.

Contact:
Warren Djerf, Brookside Communications Group

952-920-3908 / warren@brookcomm.net

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