Solectron Acquires Magnetic Data Technologies

		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

Company Expands After-Sales Capabilities MILPITAS, Calif., June 11 /PRNewswire-FirstCall/ -- Solectron Corporation (NYSE: SLR), a leading provider of electronics manufacturing and supply-chain management services, said today it has acquired Magnetic Data Technologies (MDT), a leading global provider of after-sales services for the communications, computer and electronic storage markets. The acquisition is part of the company's strategy to expand its after-sales service presence in commodity segments, such as printed circuit board assemblies, liquid crystal displays and hard-disk drives, to provide complete systems solutions to customers. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) As a result of the transaction, Solectron becomes one of the world's leading independent providers of magnetic and optical drive screening and repair services, extending their overall leadership in post-manufacturing service offerings. MDT brings to Solectron worldwide logistics and contract repair for disk drives, printers, tape drives, CD-ROM, CD-RW, DVD drives, cellular and mobile phones, pagers, digital telephone sets, routers and other network infrastructure equipment, LCD projectors and computer printed circuit boards. Financial terms of the deal were not disclosed. Founded in 1982, MDT is among the oldest independent service companies for the computer, data storage and telecommunications industries. Customers include HP, Western Digital Corporation, Hitachi, Quantum, Philips, EMC(2), Iomega, NEC, Nokia, Samsung, Yamaha and 3Com. MDT has six facilities in North America, Europe and Singapore. Prior to the acquisition, MDT was controlled by Dubilier & Company, a New York-based investment firm. Alliant Partners initiated this transaction and acted as financial advisors to MDT and Dubilier & Company. "This acquisition further strengthens our industry leading position in after-sales services and establishes Solectron as one of the world's largest independent providers of hard-disk drive screening and repair services, a market we have been targeting for growth," said Bill Mitchell, executive vice president and president of Solectron Global Services. "The transaction expands our after-sales presence in Singapore and the MDT Chihuahua site complements our existing after-sales site in Guadalajara, providing lower- cost, fast-turn services for North America." "MDT has a strong history of delivering high-quality repair services, has a good customer base and has grown steadily over the past several years," said Steven Walleck, chairman of the board and CEO of MDT. "The acquisition will broaden Solectron's customer base and its capabilities, and together, we will be able to gain significant new customer wins and provide more comprehensive after-sales services for existing customers." 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 is the industry leader in after-sales services, with facilities on five continents and reaching 95 percent of the world's electronics product users. 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 Magnetic Data Technologies MDT (http://www.mdtglobal.com) is a global provider of in-warranty after-sales services to the storage technology, electronics and telecommunications industries, with operations in North America, Europe and Asia/Pacific. Founded in 1982, MDT is among the oldest independent service companies to the computer, data storage and telecommunications industries. 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. Analysts Contact: Thomas Alsborg Solectron Corporation 408-956-6614 (U.S.) thomasalsborg@ca.slr.com Media Contact: Birgit Johnston Solectron Corporation 408-956-6995 (U.S.) birgitjohnston@ca.slr.com