<PAGE>

                                                                    EXHIBIT 99.1
                                                                    ------------

NEWS RELEASE                  Contact:  Nancy J. Sterling, APR
                                        ML Strategies, LLC
                                        617-348-1811


                            ACT MANUFACTURING, INC.
                          FILES VOLUNTARY PETITION FOR
                           CHAPTER 11 REORGANIZATION


HUDSON, MASSACHUSETTS, DECEMBER 21, 2001 - ACT Manufacturing, Inc. (Nasdaq:
ACTM) today filed a petition for reorganization under Chapter 11 of the U.S.
Bankruptcy Code in Bankruptcy Court in Worcester, Massachusetts. The Company's
overseas operations are unaffected by the filing.  A hearing is scheduled for
Wednesday, December 26 to authorize up to $9.5 million of temporary Debtor-in-
Possession (DIP) financing for the Company.  The Company has received a
commitment from lenders to provide such DIP financing if approved by the court.
Today the court authorized the company to use cash collateral until that time.

The DIP financing involved would satisfy the Company's need for an immediate
infusion of cash during the holidays. The Company is presently involved in
ongoing discussions with its existing bankers regarding long-term funding. The
Company intends to keep its management team in place, including its recently
appointed Chief Financial Officer, Joseph Driscoll.

After the Company conferred with bankers and financial and legal experts, it was
determined that a reorganization under Chapter 11 is the best way to try to
ensure the future of the Company. This step allows the Company to continue
manufacturing operations, maintain a strong work force, and continue to serve
its customers effectively.

The Company has been adversely impacted by the extremely negative conditions in
the telecommunications and high-end computing sectors. Numerous steps have been
taken in attempts to restore the Company to profitability, including work force
reductions. The filing of the petition was necessary because the Company's banks
would only continue to fund operations under the provisions of Chapter 11. The
actions which are the subject of Wednesday's hearing are expected to allow the
Company to continue operations through the current holiday season while
continuing discussions with its bankers to secure permanent financing.  The
Company explored other options, but determined that filing under Chapter 11 was
the best course of action for it's long-term future.

ACT Manufacturing, Inc., headquartered in Hudson, Massachusetts, provides value-
added electronics manufacturing services to original equipment manufacturers in
the networking and telecommunications, computer and industrial and medical
equipment markets.  The Company
<PAGE>

provides OEMs with complex printed circuit board assembly primarily utilizing
advanced surface mount technology, electro-mechanical subassembly, total system
assembly and integration, mechanical and molded cable and harness assembly and
other value-added services. The Company has operations in California, Georgia,
Massachusetts, Mississippi, France, England, Ireland, Mexico, Singapore, Taiwan
and Thailand.

ACT was represented by Richard Mikels and the commercial law group from Mintz,
Levin, Cohn, Ferris, Glovsky and Popeo, P.C. and a team from Zolofo Cooper.

This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are neither guarantees nor
promises, but which are subject to risks and uncertainties that could cause
actual results to differ materially from those anticipated.  We caution you not
to place undue reliance upon any forward-looking statements, which speak only as
of the date made.  Forward-looking statements relate, among other things, to
ACT's role in the electronics manufacturing services market, the results of
actions taken by management, the strength of our customers' markets and the
outsourcing model in the electronics industry, expected operating and financial
results, sources of liquidity and capital resources, effects of our cash
management plan, negotiations with lenders and other parties, anticipated
results of restructuring efforts, developments within the customer base and
market opportunities, future customer shipments, and the plans and objectives of
management.  Those risks and uncertainties include, among others: changes or
anticipated changes in economic conditions; trends in the electronics industry;
the strength of our customers' markets and future customer demands; the
financial condition of our customers; the inability to achieve satisfactory
financial arrangements with bank lenders and other financial sources; the
inability to successfully integrate acquired businesses, the inability to
achieve expected synergies and cost associated with acquisitions; the
effectiveness of managing manufacturing processes; increased competition and its
effects on pricing, revenues and gross margins, and our customer base; our
ability to timely complete, configure and ship products; and changes,
reductions, delays or cancellations of customer orders.  In addition, our
business and results of operations are subject to numerous additional risks and
uncertainties, including the short-term nature of customer orders, customers'
announcements and introductions of new products or new generations of products,
evolutions in the life cycles of customers' products, inventory obsolescence and
currency exchange rate movements.  For a more detailed discussion of the risks
and uncertainties of our business, please refer to our periodic reports filed
with the Securities and Exchange Commission, including our Annual Report on Form
10-K for the period ended December 31, 2000 and our Quarterly Reports on Form
10-Q for the periods ended March 31, 2001, June 30, 2001 and September 30, 2001.

                                       2

