Solectron Wins Multi-Year Manufacturing Contract from Sun Microsystems for StorageTek Products


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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 <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Puerto Rico. The contract further deepens Solectron's existing relationship with Sun. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

"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.

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.

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