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

To: Jimbo Cobb who wrote (4558)	10/6/1998 7:07:00 PM
From: riposte	Respond to of 6317

Jabil Circuit Announces New Manufacturing Relationship Tuesday October 6, 5:05 pm Eastern Time Company Press Release Jabil Circuit Announces New Manufacturing Relationship Nortel Networks Selects Jabil for "Customer-Driven Focus" ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Oct. 6, 1998--Jabil Circuit, Inc. (NYSE:JBL - news), electronics contract manufacturer for circuit board assemblies, today announced a new manufacturing relationship with Nortel Networks Inc., formerly known as Bay Networks. Nortel Networks recently completed a thorough analysis of outsourcing options. ''Our process drove us to clearly identify our vision of external manufacturing and the absolute requirements for success,'' said Jose Mejia, Vice President, Worldwide Supplier Management, Nortel Networks, Inc. After completion of the detailed process, Nortel selected Jabil to provide global manufacturing services. ''Jabil was chosen after a very thorough and extensive analysis. We are excited about our engagement with Jabil because their customer-driven focus and process improvement mindset are key to Nortel meeting its aggressive targets,'' Mejia said. ''We are aggressively implementing plans to migrate significant levels of production for Nortel Networks into multiple plants for increasingly higher levels of production throughout fiscal 1999,'' said Thomas Sansone, president of Jabil Circuit. Current plans call for modest production in the Company's first fiscal quarter with increasingly significant levels of production in the second through fourth quarter of its fiscal year. The Company said that it anticipates Nortel Networks may become a 10 percent customer by the end its fiscal 1999. Jabil Circuit, Inc. is an electronic manufacturer of circuit board assemblies for international original equipment manufacturers in the data communications, personal computer, computer peripheral and automotive markets. 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, Idaho, Scotland, Italy, Malaysia and Mexico. This release contains certain forward-looking statements, which are subject to a number of risks and uncertainties. Some factors that could cause actual results to differ materially include: business conditions and growth in the contract manufacturing industry and the general economy; variability of operating results; dependence on a limited number of customers; limited availability of components; dependence on certain industries; variability of customer requirements; and other risk factors described in the company's most recently filed SEC documents such as the Form 10-K, filed 12/9/97.

To: Jimbo Cobb who wrote (4558)	10/7/1998 1:15:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 6317

mark, SCI's Annual Report just arrived tonight. SCI notes short-term problems but long term strong growth to continue in the ECM industry. More suggestion that ECM's look pretty decent moving forward... From page One of the SCI Annual Report: "In spite of the effects of continued rapid declines of average selling prices, liquidation of excess customer distribution channel inventories, and a year of Asian economic turmoil, net revenues grew 18.1%. Outsourcing of manufacturing services continues to gain momentum as a major trend and sustained industry and Company growth prospects are clearly favorable." So SCI's CEO and COO similarly see good growth moving forward- and imagine how much better things will be when prices stabilize and inventory at PC makers, networking companies, and telcomm stocks shrinks to market condictions... Sincerely, Doug F.