Solectron and Pace Micro Technology Announce Global Manufacturing Partnership

		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

Solectron Chosen as Primary Manufacturing Services Provider for Pace Products Worldwide MILPITAS, Calif., March 5 /PRNewswire-FirstCall/ -- Solectron Corporation (NYSE: SLR), a leading provider of electronics manufacturing and supply-chain management services, said today that it has been selected as the primary provider of electronic manufacturing services for Pace Micro Technology's global product range. Pace Micro Technology is a leading developer of digital set-top boxes and home gateways to broadcasters, cable operators and telecommunications companies that provide digital television and related interactive services. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) Under a three-year agreement, Solectron will supply Pace Micro Technology with new product introduction (NPI), complete product manufacturing and assembly, test and product distribution. Solectron will provide these services through its network of NPI and manufacturing centers in Europe, the Americas and Asia/Pacific. Solectron expects to begin production in April, reaching full volume in Europe by mid-summer, with other regions to follow. Solectron's production and related services will enable Pace to streamline its supply chain, accelerate product time-to-market and reduce costs, while enabling it to focus on core competencies such as research and development "This is a significant competitive business win for Solectron, and we are pleased to be working with a leading OEM in the digital consumer industry -- a market segment we have specifically targeted for growth," said Koichi Nishimura, chairman, president and chief executive officer of Solectron. "This new partnership takes advantage of the types of services and capabilities Solectron has been steadily building to serve a growing range of OEMs' supply-chain needs." According to Nigel Stacey, director of operations at Pace: "Solectron is one of the world's leading EMS providers. We look forward to partnering with them as they work to enhance our core competencies in quality, reliability and cost-effective volume production while helping Pace deliver additional 'value-added' services for our customers worldwide." As the demand for digital television and related interactive services continues to grow worldwide, the rate of deployment of set-top boxes in the digital television market has increased. Industry analysts predict annual worldwide unit shipments for set-top boxes to reach 90 million by 2005. About Pace Micro Technology Pace Micro Technology plc is a pioneer of digital technology for the home and has helped build the global market for pay television services. Using this expertise, Pace is evolving the set-top box into a home gateway to enable sophisticated services for TV and the networked home. In this networked home, the Pace home gateway is the portal for interactive communications, for consumer devices and services to interact with each other and the outside world. Pace was the largest European supplier of home gateways (set-top boxes) during 2000. Its analogue and digital technology has been installed in over thirteen million homes worldwide since it was founded in 1982. The company is now actively involved in all digital platforms -- satellite, terrestrial, cable, wireless and xDSL -- through alliances with broadcasters, network operators and technology partners in the UK, USA, Europe, Latin America, Australasia and the Far East. These achievements were made possible through the commitment of Pace's 1000 strong workforce, over half of whom are research and development engineers, dedicated to the development of digital technology for the home and small and home office markets. Pace's head office is in Shipley West Yorkshire, with further offices in Bracknell, Cambridge, the USA and Hong Kong. The company's shares are traded on the London Stock Exchange (PIC). For further information, please visit Pace's web site at http://www.pace.co.uk . 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, the first two-time winner of the Malcolm Baldrige National Quality Award, has a full range of industry-leading capabilities on five continents. Its headquarters are in Milpitas, Calif. 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 benefits of the agreement, predicted unit shipments and current demand for set-top boxes, in each case based on current expectations that involve a number of risks and uncertainties. In particular, while the companies have announced their agreement to work together, there is no assurance that the parties will complete the intended agreement. These risks and uncertainties also include component availability, changes in technology, competition, risk of price fluctuation, changes in economic conditions of the various markets the companies serve, risks associated with international sales and operations, reliance on major customers, end-user demand, market risk, segment risk and intellectual property rights enforcement. 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: analysts, Thomas Alsborg, +1-408-956-6614 (U.S.), or thomasalsborg@ca.slr.com, or media, Matt Roszell, +1-408-586-4031 (U.S.), mattroszell@ca.slr.com, both of Solectron Corporation.