Solectron Corporation
NYSE : SLR

Solectron Corporation

May 20, 2005 16:01 ET

Solectron Completes Redemption of Senior Notes

MILPITAS, Calif.--(CCNMatthews - May 20, 2005) -

--Solectron Corporation (NYSE:SLR) announced today that it has completed its previously announced redemption of all of its outstanding 9.625 percent senior notes due 2009 (the "notes"). In accordance with the terms of the indenture governing the notes, the outstanding aggregate principal amount of $500 million was redeemed for a total of approximately $557.4 million in cash, which includes the early redemption premium and accrued interest.

"With our strong balance sheet, we're able to retire the most expensive component of our debt," said Kiran Patel, executive vice president and chief financial officer. "The benefits for Solectron are many, including measurably reducing our interest expense and eliminating capital restrictions, while maintaining strong liquidity and business flexibility."

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.

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