Solectron to Solidify Optical Technology Leadership With Acquisition of Iphotonics

		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. 21 /PRNewswire/ -- Solectron Corporation (NYSE: SLR), the world's leading provider of electronics manufacturing and supply-chain management services, said today that it has signed a definitive agreement to acquire Iphotonics, Inc., a leading provider of core optical manufacturing services. The acquisition will significantly increase Solectron's optical services capabilities, and enhance its total systems-solutions offering. The companies expect to complete the transaction during the first quarter of fiscal year 2002 ending in Nov. 2001; financial terms were not disclosed. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) Under the agreement, Solectron will acquire Iphotonics' optical manufacturing services operations, including design, prototyping, full-scale manufacturing and testing for optical networking and optical subsystems companies. Privately held Iphotonics has a design, prototyping and manufacturing facility in Glen Burnie, Md., and an engineering and development center in Fremont, Calif. Iphotonics serves many of the leading optical OEMs and suppliers. The purchase will bring to Solectron Iphotonics' advanced fiber handling, splicing, packaging, termination and connectorization services, as well as significant optical engineering and design expertise. Iphotonics also employs proprietary test and measurement systems designed for high volume optical module and subsystem manufacturing. "Iphotonics has outstanding capabilities and a management team with extensive experience in optical technology," said Saeed Zohouri, senior vice president and chief operating officer, Solectron. "This acquisition fits well with Solectron's strategy of providing full-service solutions to become the global supply-chain contractor for our customers." Following the completion of the transaction, Iphotonics will become part of Solectron's existing optical technology unit. Solectron's current optical technology services span the entire product life cycle, including: design, test development and execution, new product introduction, component engineering, module manufacturing and installation, splicing and fiber management, board-level assembly, systems integration, field installation, and end-of-life warranty and repair work. Solectron has more than 15 years of experience in optical technology and continues to build capabilities through its six optical centers worldwide. Current Iphotonics executives, including the company's chief executive officer Susan Trumbule, will join Solectron in key roles. The management team of Iphotonics has nearly 60 years of combined experience in fiber optics and more than a century of experience in manufacturing and telecommunications. "The addition of Iphotonics will further expand Solectron's leadership in the optical manufacturing and services space," said Trumbule. "When joined by Iphotonics, Solectron will strengthen its optical capabilities for customers in the telecommunications and networking industry." 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, one or both of the parties would not be obligated to close the transaction. 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, 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. 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. About Iphotonics Iphotonics, Inc. (http://www.iphotonics.com), based in Glen Burnie, Md., is a premier provider of optical integration services to OEM manufacturers of optical communication equipment. Iphotonics sets the standard for quality and state-of-the-art manufacturing and automated test services, allowing its customers enhanced speed to market and efficient, cost effective production of next generation communications systems. CONTACT: Analysts, Thomas Alsborg, +1-408-956-6614, or thomasalsborg@ca.slr.com, or Media, Matt Roszell, +1-408-586-4031, or mattroszell@ca.slr.com, both of Solectron Corporation.