Solectron Forms Alliance, Acquires Canadian Repair Facility

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MILPITAS, Calif. - Solectron Corp. has made a number of announcements in recent months. First, the company signed a definitive agreement with Acer Inc. to form a strategic alliance to provide global design, manufacturing and service solutions for OEM-branded PCs, servers and workstations. As a result of the alliance, customers will be able to access the extensive technology, motherboard and system-level design services, as well as global supply-base, manufacturing, distribution, logistics and Global Services operations, of both companies to further streamline their global supply chain.

"Acer already has a full range of technology and products," said Stan Shih, Acer Group chairman and CEO. "With the addition of Solectron`s world-class capability in managing the global supply chain, I believe the cooperation between Acer and Solectron will enhance both companies` capabilities in better serving our customers, increasing customer satisfaction, and as a result, delivering a profitable outcome for both companies."

Solectron also acquired NULOGIX Technical Services Inc., a wholly owned subsidiary of IBM Canada. As part of the acquisition, Solectron gained specialized repair and testing equipment, and has assumed responsibility for NULOGIX`s business operations in Canada, including its 80,000 sq. ft. state-of-the-art repair facility in Vaughan, Ontario. Approximately 300 NULOGIX repair, engineering, customer service and related support associates have joined the company.

The operations will use the Solectron Global Services name. As a result, the company will provide the Canadian market with a full range of value-added support service solutions, including product repair, upgrades, remanufacturing and maintenance.

"By adding NULOGIX, we are not only growing our global footprint, but we are also strengthening our existing capabilities so we can further enhance our solutions offering worldwide," said William E. Mitchell, president of Solectron`s Global Services business unit.

Finally, the company recently opened two state-of-the-art manufacturing campuses. The first, in Suwanee, Ga., is a 370,000 sq. ft. facility operating on a 50-acre campus with 1,500 trained associates and 11 SMT lines. This site will serve as the company`s East Coast center for medium- to low-complexity, medium- to high-volume systems assembly and new product introduction (NPI) services for customers involved with PCs, servers, workstations, telecommunications and networking.

The second campus, located in Timisoara, Romania, contains a 200,000 sq. ft. facility operating on a 40-acre campus with 1,000 trained associates and seven SMT lines. It will serve as the company`s full-service, high- volume, low-cost manufacturing hub for its European customer base. In anticipation of continued growth, Solectron also announced the creation of an additional 1,000 jobs at the site within the next two years.



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