Solectron to Acquire Stream International

		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

Acquisition Further Strengthens Solectron's Post-Manufacturing Capabilities MILPITAS, Calif., Sept. 25 /PRNewswire/ -- Solectron Corporation (NYSE: SLR) and Stream International said today that they have signed a definitive agreement for Solectron to acquire Stream International, a global Customer Relationship Management (CRM) outsourcing and support services provider for leading technology companies. The acquisition will significantly increase the capabilities of Solectron's Global Services business unit, and enhance the company's total service offerings. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) Through the transaction, Solectron becomes one of the world's 10 largest providers of CRM outsourcing services. Solectron will gain customer support capabilities, which include customer service and technical support. Stream operates 22 contact centers in North America, Asia and Europe, with revenues of $323 million in FY 2000 ending December 31, 2000. The companies expect to complete the transaction by the end of October; financial terms of the deal were not disclosed. "This transaction expands Solectron's presence in Customer Relationship Management services, a sector we have specifically targeted for growth," said Bill Mitchell, executive vice president and president, Solectron Global Services. "Stream's expertise extends our industry leading service offerings. The capability to add full CRM services will provide our customers with a complete and fully integrated 'end-to-end' solution. This will improve our customer's product support and service delivery in substantial and innovative ways." Once the transaction is completed, Stream will maintain its brand identity and operate within Solectron's Global Services business unit. Solectron will market Stream's services as another value-added element of our total supply-chain solutions. "Stream's vision is to become the most trusted partner for our clients, by offering services that enhance their customer relationships," commented Steve Moore, chairman and chief executive officer of Stream International. "The combination of Solectron's Global Services offerings and Stream's CRM capabilities strengthens both companies' value to our combined client base. As part of the Solectron team, we now offer our clients a single point of contact to manage the customer lifecycle, enabling them to improve their product offerings, build repeat purchases and enhance customer loyalty." "Solectron Global Services continues to strategically build the most comprehensive capabilities to better serve the changing needs of our customers," said Mitchell. "Through this transaction with Stream, we add a very strong management team and we solidify our position as the leading and most comprehensive EMS post-manufacturing services provider. We welcome all Stream employees to the Solectron team." Solectron Global Services provides a full range of post-manufacturing services, including: product repair, upgrades, re-manufacturing 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 currently has 14 sites on five continents. 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. About Stream Stream International is a global provider of CRM support solutions for leading technology companies, telecommunications companies, financial services and e-businesses. Stream's CRM solutions provide a fully integrated suite of email, live chat, voice and self-help solutions to enhance the customer experience. Approximately 10,000 employees around the world enhance over 40 million customer experiences a year, including more than 5 million electronic transactions. Stream operates 19 Customer Interaction Centers in 9 countries, including an e-services center in Mumbai, India, through Stream Tracmail Ltd. Stream is also a 40% joint venture partner in CSL-KK, which operates an additional 3 Japanese Customer Interaction Centers near Tokyo. The privately held company is based in Canton, Massachusetts. For more information, visit Stream International's website at http://www.stream.com. Goldman, Sachs & Co. acted as financial advisor to Stream International for this transaction. 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 including increasing the capabilities of Solectron's Global Services business unit, expanding Solectron's presence in the CRM services sector, and other anticipated benefits from the acquisition and the anticipated closing date of the transaction 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. If the companies do not receive the necessary approvals or fail to satisfy conditions for closing, the transaction might not be completed. Additional risks and uncertainties include the failure to achieve expected synergy and efficiencies of operations, 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. CONTACT: analysts, Thomas Alsborg, +1-408-956-6614, or thomasalsborg@ca.slr.com, or media, Birgit Johnston, +1-408-956-6995, or birgitjohnston@ca.slr.com, both of Solectron Corporation.