ATC Technology Corporation Announces Developments in its Drivetrain Business

· Renews Contract with Ford in North America through 2012

· Announces Sale of U.K.-based Drivetrain Business

Downers Grove, Illinois, Monday, May 10, 2010 – ATC Technology Corporation (ATC) (NASDAQ-GS: ATAC), today announced that it has renewed its contract with Ford in North America through 2012. No other contract terms were disclosed. In an unrelated development, the Company announced the sale of its U.K.-based Drivetrain business to two senior members of the local management team.

In commenting on the developments, Todd R. Peters, President and CEO said, "We are pleased to report the renewal of our contract with Ford in North America for the remanufacturing of transmissions. Ford has been our valued customer since 1989 and we look forward to continuing our partnership.

"We have sold our U.K.-based Drivetrain business to the local management team. We believe that the sale of the business was the right decision for our customers in Europe, our U.K.-based employees and our shareholders. The U.K.-based Drivetrain business contributed $11.9 million of revenue in 2009 with a corresponding loss from continuing operations of $2.3 million. The sale price was less than the net book value of the assets of the business. As a result, we will record a loss of approximately $5.5 million net of tax, or $0.28 per diluted share. The U.K.-based Drivetrain operations, including the loss on disposition, will be reflected in discontinued operations beginning with the second quarter of 2010."

ATC Technology Corporation is headquartered in Downers Grove, Illinois. The Company provides comprehensive engineered solutions for logistics and refurbishment services to the consumer electronics industries and the light-, medium- and heavy-duty vehicle service parts markets.