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To: Wyätt Gwyön who wrote (2049)	5/31/2000 2:31:00 PM
From: T L Comiskey	Read Replies (1) \| Respond to of 13572

FLEX ...interesting company out of Singapore.....up 10%+ on the MOT news today Motorola, Flextronics seal pact Flextronics shares rally on deal By Greg Morcroft, CBS.MarketWatch.com Last Update: 1:03 PM ET May 31, 2000 NewsWatch Latest headlines NEW YORK (CBS.MW) - Shares of Flextronics International jumped 13 percent Wednesday after Motorola said it has agreed to outsource about $30 billion of electronics manufacturing to the Singapore-based company over the next five years. Motorola (MOT: news, msgs), the world?s second-largest cell phone maker, also will buy an equity instrument at a discount for an initial payment of $100 million. The instrument is convertible over time into 11 million shares of Flextronics (FLEX: news, msgs) stock. Flextronics added 5 9/16 to 55 5/8 in recent trading. Motorola gained 11/16 to 97 1/8. Flextronics will supply and manufacture certain components and complete units included in Motorola's wireless phone, two-way pager, wireless infrastructure portfolios and various other communication devices. Flextronics is global full-service contract manufacturer of electronics. The deal is non-exclusive, and the estimated value of services is expected to exceed $10 billion in the fifth year, the companies said. Under the terms of the alliance, Motorola's Communications Enterprise (CE) has realigned some current outsourcing and plans to award the business to Flextronics provided certain competitive conditions are met. Motorola's CE will continue to be a full-line manufacturer and the alliance is expected to affect about 15 percent of Motorola's CE total manufacturing over the five year period. ?The deal will streamline Motorola's CE supply chain across multiple product lines, including wireless consumer devices, network equipment and set-top boxes,? the companies said in a press release. Production will take place throughout the world including North and Latin America, Western and Eastern Europe and Asia. ?By streamlining Motorola's CE supply chain, we will be better able to anticipate our customers' evolving needs and help speed the time to market of our products around the world," Merle Gilmore, Motorola Executive Vice President and President, Communications Enterprise, said in a press release. Motorola, a global maker of communications and other technology products had 1999 sales of $33.1 billion. This deal has helped to highlight the opportunities available for other contract manufacturers. "The contract manufacturers have been growing at anywhere from 30 to 50 percent, and we think it's going to grow like that for quite a while," Thomas Crowley, co-manager of the Pioneer Science & Technology Fund, said in an earlier interview with CBS MarketWatch. See related story. Others in the contract manufacturing business include Solectron (SLR: news, msgs), SCI Systems (SCI: news, msgs), Sanmina corp. (SANM: news, msgs) and Jabil Circuits (JBL: news, msgs).