Solectron Issues Fiscal 2002 Guidance, Updates Fourth-Quarter 2001 Guidance

		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

MILPITAS, Calif., Aug. 9 /PRNewswire/ -- Solectron Corporation (NYSE: SLR), the world's leading provider of electronics manufacturing and supply-chain management services, today issued initial guidance for fiscal 2002 and updated its performance guidance for the fourth quarter of fiscal 2001. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) In fiscal 2002, Solectron plans to generate sales in a range of $16 billion to $18.5 billion and cash earnings per share* of 62 to 66 cents, subject to changes in market conditions and before acquisitions, including the planned acquisition of C-MAC Industries announced separately today. Consistent with prior guidance, Solectron said it expects to generate fiscal fourth-quarter sales of $3 billion to $3.5 billion and cash EPS of 5 to 9 cents before restructuring charges and one-time charges. The company's fourth quarter will include $50 million in restructuring charges announced June 18. At that time, the company said it would consider whether additional restructuring actions are warranted. Solectron now plans to record an additional fourth-quarter restructuring charge of up to about $210 million, for total fourth-quarter restructuring charges of about $260 million. The company also expects to incur a one-time, non-recurring charge of about $58 million related to credit and other exposures. Safe Harbor This news release contains forward-looking statements regarding Solectron's plans for revenue and EPS in fiscal year 2002 and the fourth quarter (and fiscal year end) of fiscal 2001, and restructuring and other charges. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include the length and severity of the current economic downturn and our ability to manage customer demand through the downturn, the ability to effectively integrate the NatSteel Electronics and Centennial Technologies businesses, the ability to integrate the assets acquired from Sony Corporation, IBM and Cisco Systems, risk of price fluctuation, reliance on major customers, then length and severity of the current economic slowdown in the electronics technology sector, fluctuations in operating results, changes in technology, competition, the ability to manage rapid growth, the ability to manage rapid declines in customer demand, the ability to manage business integration, risks associated with international sales and operations, interest rate risk, environmental regulations, market risk, segment risk, the ability to retain key personnel and intellectual property rights enforcement. For a further list and description of risks and uncertainties, see the reports filed by Solectron with the Securities and Exchange Commission, specifically forms 8-K, 10-Q, S-3, S-4 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. * Cash earnings per share (EPS) is presented as supplemental information for illustrative purposes only and is not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). It is intended to help investors understand the earnings impact of certain non-cash items, restructuring and impairment costs and other one-time and non-recurring charges, and zero-coupon convertible debt. The weighted average number of shares used to calculate cash EPS is based on the weighted average number of shares used to calculate diluted net income (loss) per share adjusted for the assumed conversion of all convertible debt into common stock, when not already presumed. All monetary amounts are stated in U.S. dollars. 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.