Solectron Corporation
NYSE : SLR

Solectron Corporation

July 26, 2005 08:45 ET

Lucent Technologies Names Solectron Worldwide Manufacturer of Wireline Products; Selection Positions Solectron as Wireline Supplier of Choice

MILPITAS, Calif.--(CCNMatthews - Jul 26, 2005) -

Solectron Corporation (NYSE:SLR), a leading provider of electronics manufacturing and integrated supply chain services, today announced that it has signed an agreement with Lucent Technologies (NYSE:LU) to become a worldwide manufacturer primarily of Lucent's outsourced wireline products. This agreement significantly expands Lucent and Solectron's relationship, as it essentially consolidates the manufacturing of Lucent's portfolio of wireline products with Solectron.

"This agreement has compelling strategic value for Lucent as it drives operational efficiencies by consolidating these product lines with a supplier who can work with us in a truly integrated manner," said Jose Mejia, president of Supply Chain Networks at Lucent. "We expect to benefit from Solectron's best-in-class production system, leveraging their global infrastructure, scalability and flexibility in regions around the world."

The product lines covered by this agreement primarily include a broad range of wireline equipment designed by Lucent. As part of this engagement, Solectron and Lucent will be collaborating across the supply chain, leveraging Solectron's design engineering capabilities and post-sales repair and service offering. The engagement model is streamlined to eliminate redundancies and raises the bar for the level of integration among OEM-EMS companies.

"Solectron is proud to have been selected by Lucent as their partner for this new engagement," said Mike Cannon, president and CEO of Solectron. "This significant expansion of our existing relationship further validates that the Solectron Production System™, built upon the fundamentals of lean manufacturing and six sigma, is offering world-class leaders like Lucent new opportunities to make their supply chain a competitive differentiator."

Safe Harbor

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, our ability to successfully execute the various aspects of the new engagement with Lucent. These forward-looking statements involve a number of risks and uncertainties, and are based on current expectations, forecasts and assumptions. Actual outcomes and results could differ materially. These risks and uncertainties include: our ability to satisfy the customer; the present and future strength of the worldwide economy overall, and in the telecommunications and other electronics technology sectors in particular; the risk of price fluctuation; changes in technology; competition; variations in demand forecasts and orders; risks associated with international sales and operations; our ability to retain key personnel, and market and segment risk. For a further list and description of risks and uncertainties, see the reports filed by Solectron with the Securities and Exchange Commission, specifically Forms 8-K, 10-K/A, 10-Q, S-3 and S-4. Solectron disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Solectron

Solectron (www.solectron.com) provides a full range of worldwide manufacturing and integrated supply chain services to the world's premier high-tech companies. Solectron's offerings include new-product design and introduction services, materials management, product manufacturing and product warranty and end-of-life support. The company is based in Milpitas, Calif., and had sales from continuing operations of $11.64 billion in fiscal 2004.

About Lucent Technologies

Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit http://www.lucent.com.

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