MFLEX Enters Into Registration Rights Agreement With Majority Shareholder WBL Corporation Limited, Intends to File Shelf Registration Statement

Multi-Fineline Electronix, Inc. and WBL Corporation Limited announced that they have entered into a Registration Rights Agreement. As of the date of this announcement, WBL’s beneficial ownership in MFLEX is approximately 62%. In accordance with the Registration Rights Agreement, MFLEX intends to file a shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (SEC) to register all 14,817,052 shares of common stock held by WBL for resale. MFLEX is not registering any primary shares to sell on its own behalf.

MFLEX also announced that it is entering into a 10b5-1 plan providing for the repurchase of up to 200,000 shares in the aggregate of the company’s common stock on the open market. The timing, price, volume and terms of the repurchases will be based on market conditions, relevant securities laws and other factors. This plan will remain in effect through the end of the calendar year or until the repurchase of the shares under such authorization is completed (if earlier), unless terminated earlier pursuant to certain conditions.

“Once declared effective by the SEC, the shelf registration will provide WBL an avenue to monetize our holdings, whether in whole or in part, of MFLEX common stock, as we execute our strategic options for our technology businesses to enhance shareholder value,” said Norman Ip, chairman of WBL Corporation Limited. “The shelf registration will enable us to access the capital markets in optimal market conditions.”

“We would expect an offering, if made, to increase MFLEX’s public float and further diversify our shareholder base,” Reza Meshgin, CEO of MFLEX, added. “In the meantime, we believe our business remains on track as we continue to support the strong demand forecasts we are seeing from our smartphone and tablet customers.”