Headline: Glenayre Chooses Solectron to Manufacture Radio Frequency Products and
Systems; Solectron to Acquire Glenayre's Illinois Manufacturing Assets
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CHARLOTTE, N.C. and MILPITAS, Calif., April 21 /PRNewswire/ -- Glenayre
Technologies Inc. (NASDAQ:GEMS) and Solectron Corporation (NYSE:SLR) today
jointly announced that they have signed a letter of intent for Solectron to
acquire Glenayre's radio frequency (RF) design and manufacturing assets in
Quincy, Illinois, and to assume responsibility for the manufacture of
Glenayre's one- and two-way RF paging infrastructure equipment. Financial
details related to the transaction were not disclosed.
Under the contemplated agreement, Solectron would provide Glenayre with a
full range of integrated services across the entire product life cycle
including selected engineering, prototyping, new product introduction
management, volume printed circuit board and system assembly, and repair and
product support for five years.
Solectron intends to offer employment to approximately 350 manufacturing,
RF engineering and related support associates currently working at Glenayre's
Quincy location. Solectron would also acquire certain assets of the Quincy
operation from Glenayre including manufacturing and test equipment, and
inventory.
Stan Ciepcielinski, chief operating officer at Glenayre, stated, "This is
part of Glenayre's ongoing strategy to reduce manufacturing costs and to
obtain a more flexible operating structure. We have complete confidence in
Solectron's globally-recognized manufacturing and technical capabilities."
This release contains forward-looking statements based on current
expectations that involve a number of risks and uncertainties. In particular,
while the companies have executed a letter of intent covering the transaction,
the transaction has not closed. In the event that the companies do not
receive necessary government approvals or fail to satisfy conditions for
closing, the transaction could terminate. No assurance may be given that the
transaction will in fact close. Other potential risks and uncertainties that
could cause actual events to differ materially are included in the SEC
filings, including the Form 10-K and Form 10-Q for Glenayre and Solectron,
respectively.
Founded in 1977, Solectron Corporation (www.solectron.com ) provides
integrated solutions that span the entire product life cycle -- from pre-
production planning and design, to manufacturing, distribution, and end-of-
life product service and support -- for the world's leading electronics
OEMs. Solectron offers its customers competitive outsourcing advantages such
as access to advanced manufacturing technologies, shortened product time-to-
market, reduced cost of production and more effective asset utilization.
Solectron has received 200 quality and service awards from its customers in
addition to the 1997 and 1991 Malcolm Baldrige National Quality Awards. It is
the first company to win the Baldrige Award for Manufacturing twice in the 11-
year history of the national program. The company has more than 31,000
associates in 22 manufacturing facilities worldwide with more than 7 million
square feet of capacity. Revenues for the first six months of fiscal 1999,
ended Feb. 26, were $3.85 billion.
For over 30 years, Glenayre Technologies Inc. has been developing and
providing leading edge personal telecommunication systems, including products
for paging, digital and cellular networks. With over 2,200 employees and with
products installed in 100 countries, Glenayre's net sales exceeded $399
million in 1998. Additional information about Glenayre is available on the
company's Web site at: glenayre.com .
SOURCE Glenayre Technologies Inc.
-0- 04/21/99
/CONTACT: Mark Smalley, Investor Relations of Glenayre Technologies Inc.,
704-553-0038, or Msmalley@glenayre.com /
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 111723/
/Web site: solectron.com /
/Web site: glenayre.com / |
