Solectron Corporation (NYSE:SLR), a leading provider of
electronics manufacturing and integrated supply chain services, today
announced it won a multi-year contract from Sun Microsystems, Inc.
(NASDAQ:SUNW) for its legacy StorageTek(TM) product line. As part of
the agreement, Sun will transfer to Solectron the operations at its
StorageTek manufacturing facility in Puerto Rico. The contract further
deepens Solectron's existing relationship with Sun.
"The Sun brand is tightly linked to the benefits our customers
derive from our products, including unparalleled performance and
lowest total cost of ownership," said Eugene McCabe, executive vice
president, Worldwide Operations, Sun Microsystems. "Over the years,
Solectron has become a valued partner in helping to deliver on
attributes that differentiate Sun from the competition, which is among
the key reasons we chose Solectron for this contract."
Solectron's deal with Sun is a continuation of Solectron's growth
strategy that includes similarly structured agreements in recent years
with other leading OEMs. These long-term manufacturing contracts
typically include Solectron's acquisition of people and assets from
the OEMs.
"Sun Microsystems has been a Solectron customer for many years,
and we're thrilled to be able to deepen that relationship with this
new business win," said Doug Britt, executive vice president, Sales
and Account Management, Solectron. "Sun is a technology innovator,
industry pioneer, and one of the best known global IT brands. We look
forward to partnering with Sun on its StorageTek products to achieve
its business objectives through our manufacturing services."
Through its integrated supply chain services and global footprint,
Solectron is focused on delivering manufacturing expertise and
operational innovation to help customers like Sun Microsystems improve
their competitive position by speeding product time-to-market,
reducing lead times, improving quality and reducing costs.
Safe Harbor
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
including, but not limited to, our ability to successfully execute the
various aspects of the new engagement with Sun. These forward-looking
statements involve a number of risks and uncertainties, and are based
on current expectations, forecasts and assumptions. Actual outcomes
and results could differ materially. These risks and uncertainties
include: our ability to successfully transition and manage the
StorageTek operations in Puerto Rico; our ability to satisfy the
customer; the present and future strength of the worldwide economy
overall, and in the computing and other electronics technology sectors
in particular; the risk of price fluctuation; changes in technology;
competition; variations in demand forecasts and orders; risks
associated with international sales and operations; our ability to
retain key personnel, and market and segment risk. For a further list
and description of risks and uncertainties, see the reports filed by
Solectron with the Securities and Exchange Commission, specifically
Forms 8-K, 10-K, 10-Q, S-3 and S-4. Solectron disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
About Solectron
Solectron Corporation (www.solectron.com) provides a full range of
electronics manufacturing and supply chain management services to the
world's leading networking, telecommunications, computing, consumer,
automotive, industrial and medical device firms. The company's
industry-leading Lean Six Sigma methodology (Solectron Production
System(TM)) provides OEMs with low cost, flexibility and quality that
improves competitive advantage. Solectron's service offerings include
new product introduction, collaborative design, materials management,
product manufacturing, product warranty repair and end-of-life
support. Based in Milpitas, Calif., Solectron operates in more than 20
countries on five continents and had sales from continuing operations
of USD 10.4 billion in fiscal 2005.
Note: SOLECTRON and the Solectron logo are registered trademarks
of Solectron Corporation. The Solectron Production System, SPS, and
Solectron Supply Chain Solutions Suite are also trademarks of
Solectron Corporation. Other names mentioned are trademarks,
registered trademarks or service marks of their respective owners.
