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To: Skeeter Bug who wrote (111833)	3/24/1999 5:29:00 PM
From: Duker	Respond to of 176387

SCI Systems, Inc. Makes Multiple Announcements [Interesting ... --Duker] HUNTSVILLE, Ala., March 24 /PRNewswire/ -- SCI Systems, Inc. (NYSE: SCI - news; ''SCI'') of Huntsville, Ala. said today that revenue and earnings per share amounts for the quarter ending March 28, 1999 are currently expected to be upper single digit percentages below published Wall Street consensus amounts. Revenues have been primarily affected by market conditions in the personal computer product area and the European geographic area. In addition to the impact of revenue levels, earnings have been affected approximately eight cents per share by the devaluation of the Brazilian Real. The Company said that additional new contract wins have occurred in recent weeks for calendar 1999 volume production. These orders, when combined with those previously won, will create conditions of inadequate floor space in several Company locations during coming quarters, particularly in low cost countries such as Mexico and Hungary. While no new green field plants are planned, a series of expedited building projects have been initiated to add preplanned additional phases to several recently constructed plants. The Company said that in light of the current market price for its common stock it presently intends to call for redemption, on May 1, 1999, all of its outstanding 5% Convertible Subordinated Notes due May 1, 2006. As an alternative to redemption, holders have the right to convert the Notes into Common Stock of SCI pursuant to the terms of the Notes. Olin B. King, the Company's Chief Executive Officer, has recently celebrated his sixty-fifth birthday. In response to questions, he has stated that it has long been his intention to relinquish the CEO position on June 30, 1999, the end of the current fiscal year; he plans to remain Chairman of the Board of Directors. It is the intention of the Board to name A.E. Sapp, Jr. as CEO, effective July 1, 1999. He joined SCI in 1962; he has been its President and Chief Operating Officer since 1981. King commented, ''The Company is extremely fortunate to have a person of Gene Sapp's talent, knowledge and energy to guide SCI through the exciting times which lie ahead. He will be ably supported by a corps of nine Senior Vice Presidents, 40 Vice Presidents and other officers, and a cadre of over 350 experienced managers.'' The information set forth herein is based on certain assumptions and expectations regarding future business activity. This release includes forward-looking statements, including statements regarding capacity and expansion plans. Such statements involve uncertainty and risk, and actual results could differ materially from those reflected in such forward-looking statements. Factors which could cause actual results to differ materially include component availability and pricing, management of growth, intense competition, plant startup and transition cost, customer and product concentration, technological changes, potential delays in expansion or construction plans and foreign currency fluctuations, as well as other risks contained in the Company's filings with the Securities and Exchange Commission. Headquartered in Huntsville, Ala., SCI Systems, Inc. is a diversified electronics manufacturer whose products and systems are supplied to a variety of aerospace, commercial and industrial customers. Its more than 23,500 employees operate thirty-four facilities in fifteen countries.