Solectron Finalizes Partnership with Mitsubishi Cellular Phone Division

Solectron Corp. has finalized the terms of a manufacturing partnership with Mitsubishi Electric Corp., the parent company of Mitsubishi Consumer Electronics America (MCEA). Under the partnership agreement, Mitsubishi will transfer the manufacturing assets of MCEA's Cellular Mobile Telephone (CMT) division in Braselton, GA to Solectron. On the other hand, Solectron will provide MCEA with a full range of manufacturing services for five years, including new product introduction management, PCB assembly, and full systems assembly for MCEA's private-labeled cellular products sold within North America.

As a result of the agreement, Solectron has hired approximately 400 of MCEA's manufacturing and support employees currently working at the Braselton facility. In addition, Solectron has acquired manufacturing equipment and test equipment and has started manufacturing operations in a 100,000 sq. ft. leased facility on the MCEA campus.

Solectron intends to merge the MCEA Braselton operations with its current manufacturing operations in Duluth, GA. The combined operations will be housed in a single manufacturing campus in Georgia. This campus is expected to be complete in 1999.