NEC and Solectron Announce Plan for Manufacturing Partnership

		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

TOKYO, Oct. 23 /PRNewswire/ -- Solectron Corporation (NYSE: SLR) and NEC Corporation (Nasdaq: NIPNY) (FTSE: 6701q.l) today announced a plan to enter an agreement under which NEC would transfer the manufacturing business of its Ibaraki, Japan facility (NEC Ibaraki, Ltd.) to Solectron, and Solectron would provide manufacturing services for server, workstation and storage products. (Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO ) This partnership will expand Solectron's leading presence in Japan, and is in line with NEC's production innovation activities in the computer business. Under a letter of intent signed by the two companies, Solectron would purchase all shares of a new company established by NEC and take over NEC Ibaraki's manufacturing business, including about 500 people with the skills and expertise to provide market-leading build-to-order/configure-to-order manufacturing, final test and fulfillment services for server, workstation and storage products. The companies expect to enter into a multi-year agreement for Solectron to supply those services to NEC. Solectron would also lease production space at the site, as well. "We are pleased to expand our relationship with NEC, the Japan market leader in servers and work stations," said Koichi Nishimura, chairman, president and chief executive officer of Solectron. "This is another positive indication that Japanese companies are utilizing our supply chain model to help them compete more effectively in the global marketplace." "We are pleased to make a new alliance with Solectron, a world-class EMS provider," said Kazuhiko Kobayashi, senior vice president, NEC Solutions, NEC Corp. "We expect this new partnership will help to strengthen NEC's competitiveness of server and workstation products." NEC has long been an innovator of production techniques in the computer business. Through this alliance, the company expects to improve the price competitiveness of its products by leveraging NEC Ibaraki's leading-edge production techniques with Solectron's global purchasing power. NEC Ibaraki provides development and manufacturing for non-PC computer and related products. Business operations currently managed by NEC Ibaraki other than manufacturing, such as product development and data centers, would not be transferred to Solectron and will remain with NEC. The companies now begin negotiating details of a final agreement, a process expected to conclude in the first quarter of calendar 2002. Solectron continues to be at the forefront of the EMS industry as Japanese companies increasingly move to an outsourced manufacturing and supply chain model. Since opening a program office in Tokyo in 1992, Solectron has steadily expanded its presence in Japan. Today, Solectron provides new product introduction services, embedded computer solutions, repair and recycling services and manufactures high-end consumer products at facilities throughout Japan. Solectron employs about 1,500 people in the country. 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 NEC Corporation NEC Corporation is a leading provider of Internet solutions, dedicated to meeting the specialized needs of its customers in the key computer, network and electron device fields through its three market-focused in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation, with its in-house companies, employs approximately 150,000 people worldwide and saw net sales of 5,409 billion Yen (approx. US$43 billion) in fiscal year 2000-2001. For further information, please visit the NEC home page at: http://www.nec.com . Safe Harbor This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, anticipated benefits of the transfer, based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. In particular, while the companies have signed a letter of intent, there is no assurance that the parties will reach a definitive agreement or complete the transaction. These risks and uncertainties also include the risk of the parties not negotiating a final agreement on the anticipated schedule, failure to enter into a supply agreement, this transaction not closing, or not closing on the anticipated schedule, failure to achieve expected synergy and efficiencies of operations, component availability, risk of price fluctuation, reliance on major customers, fluctuations in operating results, changes in technology, competition, the ability to manage rapid growth, 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. 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; or Shinji Naraki of NEC USA Inc., +1-212-326-2501, or SNaraki@necusa.com.