Solectron Expands After-Sales Service Presence in China

		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

BEIJING, May 9 /PRNewswire-FirstCall/ -- Solectron Corporation (NYSE: SLR), a leading provider of electronics manufacturing and supply-chain management services, said today it has expanded its after-sales service presence in Beijing, Shanghai and Hong Kong by acquiring the assets of NC&C, a leading Chinese component repair company. Solectron's Global Services Business unit already has an operation in China in Suzhou. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) Solectron will initially provide component repair services for computing, peripherals and point of sales equipment, including servers, desktop PCs, notebooks and workstations. In the next few months, Solectron will expand these services to other markets such as cell phone, telecom infrastructure and LCD. Over time, Solectron will also develop other value-added services, such as systems level services, logistics, and call centers to provide end-to-end solutions with leverage from Solectron's manufacturing operations in Suzhou, Shanghai and Shenzhen and strategic partners. NC&C is a privately owned company established in 1996 in Beijing. Current customers include BlueExpress, IBM, HP, Compaq and Apple Computers. Financial terms of the deal were not disclosed. "This transaction quickly expands our presence in one of the fastest growing electronic markets in the world," said Bill Mitchell, executive vice president and president of Solectron Global Services. "NC&C has a strong history in delivering high-quality component repair services, customer satisfaction and has a very good technical workforce. This will enable us to meet the growing customer demand for product support and service delivery in China." "Expanding our after-sales service presence in China positions us as the only electronics manufacturing service company in China to offer a complete one-stop solution for our Chinese and global customers," said Kent Chen, vice president and general manager of Solectron China Electronic Manufacturing and Test Solutions group. "Solectron now has 10 sites in China offering integrated solutions, including new product introduction services, full product manufacturing and systems integration, sheet metal manufacturing, enclosure design and manufacturing, backplane assembly and repair and recycling services. In addition, Solectron provides distribution services through our partnership with ECS (formerly PCI), China's third-largest electronics distributor." The Solectron Global Services site in Suzhou offers repair services for telecommunications, computing and networking equipment. The site is co-located with Solectron's manufacturing headquarters in Suzhou. The manufacturing site offers new product introduction, design and manufacturing for telecommunications, networking, computing and industrial instrument products. A new manufacturing and warehouse building of 252,000 square feet is currently under construction. Solectron Global Services provides a full range of after-sales services, including: product repair, upgrades, remanufacturing and maintenance through factory and fast-hub service centers located around the world; 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. Solectron Global Services has sites on five continents, including dedicated service and support facilities in Australia, China, Japan and Singapore. Safe Harbor This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, anticipated benefits of the acquisition, based on current expectations that involve a number of risks and uncertainties. Specifically, additional risks and uncertainties include the failure to achieve expected synergy and efficiencies of operations, discontinuity of component supply or availability, risk of price fluctuation, loss of major customers, the ability to manage growth, the ability to manage rapid declines in customer demand, the ability to manage business integration, risks associated with international sales and operations and the ability to retain key personnel. For a more detailed description of risks and uncertainties, see the reports filed by Solectron with the Securities and Exchange Commission, specifically Solectron's forms 8-K, 10-Q and 10-K. 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. CONTACT: Analysts, Thomas Alsborg, +1-408-956-6614, or thomasalsborg@ca.slr.com, or Birgit Johnston, +1-408-956-6995, or birgitjohnston@ca.slr.com, both of Solectron Corporation.