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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: Trader Ric who wrote (3785)	5/11/1998 5:10:00 PM
From: Trader Ric	Respond to of 6317

Text of Press Release, if this plant is as big as I hear stock price should set record high this summer. St. Petersburg, FL - May 11, 1998-- Jabil Circuit, Inc. (NYSE: JBL) and Hewlett-Packard Company (NYSE: HWP) today announced they have signed a memorandum of understanding for Jabil to buy the manufacturing assets of HP's LaserJet Solutions Group Formatter Manufacturing Organization (FMO). Under the terms of the memorandum, Jabil will acquire the printed-circuit assembly assets of the FMO operations in Boise, Idaho and Bergamo, Italy and offer employment to the 600 employees of those operations. The transaction is intended to close by August 31, 1998. The acquired operations will continue to provide circuit-board assemblies for the LaserJet printer divisions of HP. Other terms of the transaction were not disclosed. "We have studied many OEM factory acquisition opportunities offered over the last several years and feel that HP's FMO operations are a remarkable fit for us," said Thomas Sansone, president of Jabil Circuit. "With the acquisition of these operations, we will gain an experienced and talented manufacturing team that we believe is uniquely compatible with our culture and values. We gain participation in the printer market as a strategic supplier to the market leader, and we will establish new manufacturing geographies in both the Western United States and in Continental Europe." Sansone also indicated that the acquisition includes significant advanced manufacturing technologies, notably specialized automation and process-development capabilities. "Jabil's technology and quality leadership will allow us to continue to provide our customers with outstanding printing solutions," said Carolyn Ticknor, HP vice president and general manager of the HP LaserJet Solutions Group. "This new relationship will give our employees growth and advancement opportunities with a successful, high-quality company, while allowing HP to implement a more efficient business model and deliver the best value in products to our customers." "This opportunity represents our first significant acquisition," said Scott Brown, Jabil's vice president, Corporate Development. "With the help of the talented and professional team at HP, we intend to achieve a new standard of seamless transition for this kind of manufacturing strategy conversion. We believe the benefits to the customers, employees and shareholders of both companies will be significant." About Jabil Circuit Jabil Circuit, Inc. is an electronic manufacturer of circuit board assemblies and systems for communications, personal computers, peripherals, automotive and consumer products. Jabil offers circuit design, board design from schematic, prototype assembly, volume board assembly and system assembly services from automated manufacturing facilities in Florida, Michigan, California, Scotland, Malaysia and Mexico. Information about Jabil can be found on the World Wide Web at jabil.com. About HP Hewlett-Packard Company is a leading global provider of computing, Internet and intranet solutions, services, communications products and measurement solutions, all of which are recognized for excellence in quality and support. HP has 123,300 employees and had revenue of $42.9 billion in its 1997 fiscal year.Information about HP and its products can be found on the World Wide Web at hp.com.