Solectron Announces Definitive Agreement to Acquire IBM Global Asset Recovery Operations in Raleigh, N.C.

		SOLECTRON LOGO Solectron (www.solectron.com), the world's leading supply-chain facilitator, provides a full range of manufacturing and supply-chain management services to the world's premier high-tech electronics companies. Solectron's offerings include new-product design and introduction services, materials management, high-tech product manufacturing, and product warrantyand end-of-life support. Solectron, based in Milpitas, Calif., is the first two-time winner of the Malcolm Baldrige National Quality Award for manufacturing. (PRNewsFoto)[AG JL] MILPITAS, CA USA

Transaction Includes Three-Year Supply Agreement; Will Strengthen Solectron's Industry-Leading Asset-Recovery Capabilities MILPITAS, Calif., Jan. 7 /PRNewswire-FirstCall/ -- Solectron Corporation (NYSE: SLR) said today it has signed a definitive agreement to acquire IBM's Global Asset Recovery operations in Raleigh, N.C. Under the terms of the agreement, Solectron will strengthen its asset-recovery capabilities in its Global Services business unit, and expand its long-time relationship with IBM through a three-year supply agreement. The transaction is expected to be completed in February. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) Under the terms of the agreement, Solectron will expand its industry-leading post-manufacturing services offering with the addition of IBM's asset-recovery capabilities, which include de-manufacturing, remanufacturing, refurbishment, recycling and disposal services. At the Raleigh location, IBM services PCs, laptops, monitors, servers, printers, point-of-sale equipment and storage products. Solectron will fully integrate the IBM center into its existing worldwide Solectron Global Services operations. Among its 47 post-manufacturing and contact-center services locations worldwide, Solectron currently provides asset-recovery services at its locations in Toronto; Lincoln, Calif.; Amsterdam, Netherlands; and Jaguariuna, Brazil. "We are very pleased to expand our long-time relationship with IBM by adding this world-class asset-recovery center to our expansive set of post-manufacturing services," said Bill Mitchell, executive vice president and president of Solectron Global Services. "This agreement allows Solectron to better serve customers' complete product life-cycle needs as legislative and business requirements that impact the electronics industry continue to evolve." As part of the agreement, Solectron will use the existing IBM center in Raleigh, and acquire the related building, equipment and fixed assets. Solectron will offer positions to the approximately 250 IBM employees who support these operations. Solectron currently has two other operations in Raleigh-Durham, providing systems-manufacturing and post-manufacturing services. Solectron Global Services provides a full range of post-manufacturing services, including: product repair, upgrades, re-manufacturing and maintenance through factory and fast-hub service centers located around the world; CRM and help-desk support through customer call-in centers for end-users; logistics and parts management; asset recovery; returns processing; warehousing; engineering change management and end-of-life manufacturing. About Solectron Solectron (http://www.solectron.com) provides a full range of global manufacturing and supply-chain management services to the world's premier high-tech electronics companies. Solectron's offerings include new-product design and introduction services, materials management, high-tech product manufacturing, and product warranty and end-of-life support. Solectron, based in Milpitas, Calif., is the first two-time winner of the Malcolm Baldrige National Quality Award. The company had sales of $12.3 billion in fiscal 2002. Safe Harbor This news 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, among other things, the anticipated consummation of the transaction and the prospective multi-year contract, in each case based on current expectations that involve a number of risks and uncertainties. In particular, the companies have entered into definitive agreements that are subject to closing conditions, which may preclude the completion of the transaction. Several business, economic and industry-wide risks and uncertainties may keep the companies from realizing the full value of the proposed relationship. These risks and uncertainties include the absence of any minimum revenue guarantees in the supply agreement, risk of falling demand for products and services, price fluctuation, changes in technology, competition, the ability to manage rapid declines in customer demand, the ability to manage business integration and the ability to retain key personnel. Other potential risks that could cause actual events to differ materially are included in filings with the Securities and Exchange Commission, including Forms 8-K, 10-K, 10-Q, S-3 and S-4 for Solectron Corporation. 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. CONTACT: investors, Perry Hayes, +1-408-956-7543, or perryhayes@ca.slr.com, or Tonya Chin, +1-408-956-6537, or tonyachin@ca.slr.com, or press, Robert (Bob) Kula, +1-408-935-5405, or robertkula@ca.slr.com, all of Solectron Corporation.