Solectron Begins Compulsory Acquisition Of Remaining Shares of NatSteel Electronics

		SOLECTRON 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 warranty and end-of-life support. The company, based in Milpitas, Calif., and founded in 1977, employs more than 65,000 people in 57 locations worldwide. In fiscal 2000, the company generated sales of US$14.1 billion. (PRNewsFoto)[JL] MILPITAS, CA USA

SINGAPORE, Jan. 14 /PRNewswire/ -- Solectron Corporation (NYSE: SLR), the world's leading provider of electronics manufacturing and supply-chain services, said today it has begun a compulsory process to acquire the remaining common shares of NatSteel Electronics that were not tendered under Solectron's recent voluntary takeover offer. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) NatSteel Electronics shareholders who did not tender their shares will automatically be mailed information about the compulsory process. Under Singapore law, Solectron will pay those shareholders US$4.53 per share, the same terms as the voluntary cash offer that was announced Oct. 31 and that closed Jan. 5. Solectron has also published a formal notification of the compulsory proceeding. About 99.5 percent of NatSteel Electronics issued and fully paid-up capital were tendered in Solectron's voluntary offer. By exceeding the 90 percent threshold, Solectron is entitled under Singapore law to acquire remaining shares through compulsory acquisition. Once that step is completed, NatSteel Electronics will become a wholly owned subsidiary of Solectron and will be de-listed from the Main Board of the Singapore Stock Exchange. About NatSteel Electronics NatSteel Electronics provides global contract manufacturing services for original equipment manufacturers (OEMs) in the electronics industry. The company manufactures printed circuit board (PCB) assemblies, and provides box-building capabilities and pre- and post-manufacturing services such as design, prototyping, testing and logistics. The company has about 12,000 employees and more than 2.3 million square feet of manufacturing capacity in 11 sites worldwide. In the fiscal year ended Dec. 31, 1999, the company had sales of S$3.2 billion. About Solectron Solectron (http://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 warranty and end-of-life support. The company, based in Milpitas, Calif., and founded in 1977, employs more than 71,000 people in 60 locations worldwide. Net sales for the first three months of the fiscal year 2001 ended Dec. 1, 2000, was US$5.7 billion. Solectron was the first two-time winner of the Malcolm Baldrige National Quality Award for manufacturing. Media Contacts: Birgit Fink-Jensen of Solectron Corporation, +1 (408) 956 6995 (U.S.), birgitfinkjensen@ca.slr.com; or Analysts Contacts: Karen Wong of Merrill Lynch, +(65) 330 7888 (Asia), karen_wong@sg.ml.com; or Thomas Alsborg of Solectron Corporation, +1 (408) 956 6614 (U.S.), thomasalsborg@ca.slr.com.