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Technology Stocks : Solectron -- Ignore unavailable to you. Want to Upgrade?

To: Jim Burnham who wrote (282)	2/1/1999 3:34:00 PM
From: Bonnie Morroe	Read Replies (1) \| Respond to of 493

Solectron Selected as IBM's Worldwide Manufacturer for Motherboards Used In Its Mobile Products Company Completes Acquisition of IBM's Electronic Card Assembly And Test Operations in Austin, Texas MILPITAS, Calif., and AUSTIN, Texas, Feb. 1 /PRNewswire/ -- Solectron Corporation (NYSE: SLR - news), a worldwide provider of customized electronics manufacturing solutions to original equipment manufacturers (OEMs), today announced that it has completed its acquisition of IBM's (NYSE: IBM - news) Electronic Card Assembly and Test (ECAT) operations located in Austin, Texas. Financial details related to the transaction were not disclosed. Solectron originally announced its intent to purchase the IBM ECAT operations on January 6. As part of the transaction, Solectron will lease a manufacturing facility on IBM's Austin campus and within three years, merge the operations into Solectron's newly expanded Austin campus. In addition to gaining 405,000 square feet of manufacturing capacity, Solectron assumed certain assets, including equipment and inventory, and offered employment to approximately 1,300 IBM design, test and manufacturing associates. With this agreement, Solectron will be IBM's exclusive provider for printed circuit board (PCB) assembly for motherboards used in IBM's mobile products manufactured worldwide for the next three years. The companies have also signed agreements governing intellectual property rights and Solectron will gain access to more than 100 of IBM's patents covering a wide spectrum of technologies and capabilities included in the design and manufacture of notebook motherboards. In support of the agreement, Solectron will provide a full range of integrated New Product Introduction (NPI) services to IBM's worldwide design teams. These NPI services include pre-manufacturing support like design and layout, component and concurrent engineering, test development, prototype, procurement and assembly. Solectron will also provide a full range of PCB manufacturing services which include physical design, early prototyping, new product launch, PCB assembly and test, volume production, end-of-life support, field return services and life-cycle management. ''This transaction is the second largest in Solectron's history and confirms our strong 21-year relationship as a key strategic supplier and manufacturer for IBM,'' said Dr. Ko Nishimura, Solectron's chairman, president and CEO. ''I am excited that we were selected by IBM and welcome their 1,300 highly skilled and talented associates to the Solectron family.'' About Solectron 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. The company has received more than 180 quality and service awards from its customers in addition to the 1997 and 1991 Malcolm Baldrige National Quality Awards. Solectron 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 30,000 associates in 20 manufacturing facilities worldwide with more than 6 million square feet of capacity. Revenues for fiscal year ended August 28, 1998, were US$5.3 billion.