Solectron Corporation
NYSE : SLR

Solectron Corporation

June 07, 2005 16:24 ET

Solectron Expands New Product Introduction and Low-Volume, High-Mix Capabilities to New England Region

MILPITAS, Calif.--(CCNMatthews - Jun 7, 2005) -

Solectron Corporation (NYSE:SLR), a leading provider of electronics manufacturing and integrated supply chain services, today announced that through its FinePitch Technology business, which focuses on serving the needs of emerging companies, it is expanding its new product introduction (NPI) and low-volume, high-mix capabilities (LVHM) in the Boston area. Solectron has entered into a definitive agreement to acquire Teradyne's Foundry East PCBA (printed circuit board assembly) manufacturing operations located near Boston, Mass. Solectron is focused on increasing sales in this critical area and expanding its business with LVHM customers. The transaction, which is not deemed to be material, is scheduled to close on June 17, 2005.

Solectron's FinePitch business, based in Silicon Valley, Calif., uniquely offers its customers the best of both worlds -- the flexibility and speed typical of smaller EMS companies along with the first tier EMS companies' materials procurement leverage and global footprint. The transaction will bring to Solectron Teradyne's LVHM process capabilities, as well as significant engineering and manufacturing expertise. Solectron will incorporate its Solectron Production System™, which includes Lean Six Sigma capabilities for world-class excellence and use this operation as a focus for serving and enhancing the needs of other LVHM customers in the New England area. Furthermore, Solectron will contribute its existing NPI and LVHM processes to those already in place to create an operation focused on world-class flexibility and speed.

"FinePitch's NPI and LVHM offerings are a great way to begin an engagement with a startup or a large established company having LVHM requirements. Once engaged, our experience has been that most companies are successful and the relationship grows," said Doug Britt, executive vice president of Sales for Solectron. "The timing was right for us to expand our NPI and LVHM capabilities to the East Coast, since it is something that our customers have been requesting. This new geography for FinePitch presents an excellent area of growth and great opportunity for Solectron."

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 after-market services support. The company is based in Milpitas, Calif., and had sales from continuing operations of $11.64 billion in fiscal 2004.

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, regarding the acquisition of Teradyne's Foundry East PCBA manufacturing operations, which are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include our ability to close the transaction within the targeted timeframe and our ability to successfully integrate the acquired operations into Solectron and its FinePitch Technology business. For a further list and description of risks and uncertainties, see the reports filed by Solectron with the Securities and Exchange Commission (SEC), specifically Forms 8-K, 10-Q, 10-K, S-3 and S-4 and Solectron's most recent quarterly report on Form 10-Q filed with the SEC on April 14, 2005. 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.

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