Solectron Acquires Cisco Systems' Optical Modules Manufacturing Capabilities in South Carolina

		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

EMS Company Will Be the Primary Manufacturer for Cisco's Core DWDM Optical Modules MILPITAS, Calif., May 29 /PRNewswire/ -- Solectron Corporation (NYSE: SLR), the world's leading provider of electronics manufacturing and supply-chain management services, said today it has acquired Cisco Systems, Inc.'s, Dense Wave Division Multiplexing (DWDM) multiplex, demultiplex, and add/drop optical module manufacturing capabilities located in Cisco's West Columbia, S.C., facility. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) Solectron expects to move the operation to the company's East Coast optical center of competence in Charlotte, N.C. As a result of the transaction, Solectron assumes full manufacturing, test and certain New Product Introduction (NPI) responsibility for Cisco's core DWDM multiplex, demultiplex, and add/drop optical modules for the next two years. Solectron will provide a full range of services to Cisco, consisting of optical assembly and test, which includes splicing and fiber handling; supply-base management; and in-warranty repair services. Separate from the transaction, Solectron has offered employment to key operations and management individuals who are familiar with Cisco's optical product line and have significant optical experience and capabilities. "Solectron and Cisco have worked closely together for more than seven years and we are pleased to further expand this relationship to the fast growing optical-module market," said Dan Perez, Solectron's senior vice president of worldwide account management and marketing, and global account executive for the Cisco Systems account. "With this acquisition, we continue to build and strengthen our optical capabilities for our customers in the telecommunications and networking industry." The acquisition further enhances Solectron's existing infrastructure and capabilities for the optical networking market. In 1997, Solectron acquired Ericsson's site at Norrkoping, Sweden, whose experience included more than 15 years of optical prototyping module assembly, test development, DWDM systems integration and test, and sustaining capability in the telecom marketplace. Since then, Solectron has expanded its optical capabilities to sites in Milpitas, Calif.; Hillsboro, Ore.; Charlotte, N.C.; and Austin, Texas; through OEM divestitures and greenfield operations. The company also expects to further expand its optical assembly capabilities into low cost regions in the near future. Solectron's optical experience includes: -- Providing complete systems build (up to OC192), including fully integrated optical switches, routers and DWDM systems -- Manufacturing optical modules: -- SONET / SDH transmitters, receivers and transponders from OC3 to OC192 -- EDFAs (Amplifiers) -- Optical add/drop, multiplex and demultiplex -- Offering optical design services: -- Optical modules and systems -- Test development, prototyping, module and systems-level characterization and compliance testing -- Delivering optical manufacturing services, including: -- Component selection, acquisition incoming inspection and characterization -- Optical module, board and systems-level assembly and test -- Fiber management, handling and routing including SM, PM and Ribbon fibers -- Field installation of complete telecommunication systems -- On-site system upgrades and repair -- Depot repair of optical modules 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. In particular, while the companies have signed a definitive agreement, there is no assurance that the parties will complete the transaction. In the event that the companies do not receive the necessary approvals or fail to satisfy conditions for closing, the transaction will terminate. 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, fluctuations in operating results, changes in technology, competition, 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 further list and 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, S-3 and 10-K. 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. 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. Solectron, based in Milpitas, Calif., is the first two-time winner of the Malcolm Baldrige National Quality Award for manufacturing. CONTACT: analysts, Thomas Alsborg, 408-956-6614, or thomasalsborg@ca.slr.com; or Media, Kimi Nishita, 408-956-6213, or kiminishita@ca.slr.com, both of Solectron Corporation.