Sanmina Agrees in Principle to Acquire Alcatel's Manufacturing Operations In Richardson, Texas

Acquisition Expands Sanmina's World Class Engineering and Manufacturing

Services and Enables Alcatel to Focus on Bringing Customers the Latest


Jun 25, 2001, 01:00 ET from Sanmina Corporation

    SAN JOSE, Calif., and DALLAS, June 25 /PRNewswire/ --
 Sanmina Corporation (Nasdaq:   SANM), a leading electronics contract
 manufacturer, and Alcatel (NYSE:   ALA), a leading global supplier of
 next-generation networks, today announced they have signed a letter of intent
 for Sanmina to acquire Alcatel's manufacturing operations in
 Richardson, Texas. Alcatel announced in February 2001 that it planned to
 divest this operation.
     The transaction is expected to close in Sanmina's September 2001 quarter,
 following the execution of a definitive agreement and completion of all other
 government requirements. Financial terms of the agreement, which includes a
 multi-year supply contract, were not disclosed.
     Alcatel's advanced manufacturing operation in Richardson, which has a
 highly skilled management team and staff totaling 450 employees, is ISO 9001
 and TL 9000 certified and occupies facilities totaling approximately
 320,000 square feet.
     "We believe this transaction underscores our commitment to working closely
 with our customers," said Jure Sola, Sanmina's chairman and chief executive
 officer. "For over 15 years, Alcatel has been a valued customer, and we are
 pleased that they have selected us as a strategic manufacturing partner. We
 look forward to an expanded relationship and to providing this leading
 communications company with the superior products and services customers
 expect from Sanmina.
     "The planned acquisition of this operation expands our world-class
 manufacturing capabilities, supporting our strategic growth goals. We now have
 over 60 global facilities providing our customers with cost efficient
 manufacturing solutions," concluded Sola.
     "This move is part of Alcatel's strategic effort to focus resources on
 new-product introduction and product integration," said Mike Quigley,
 president, Alcatel Americas. "It will enable us to better focus our internal
 resources on providing the latest technology that our customers require."
     The divestiture also is expected to result in operational efficiencies for
 Alcatel that will improve cash flow and further strengthen its position in the
     About Alcatel
     Alcatel builds next generation networks, delivering integrated end-to-end
 voice and data networking solutions to established and new carriers, as well
 as enterprises and consumers worldwide. With 130,000 employees and sales of
 Euro 31 billion in 2000, Alcatel operates in more than 130 countries.
 Information about Alcatel is available at .
     About Sanmina
     Founded in 1980, Sanmina Corporation ( provides a
 cost-efficient, design and manufacturing solution to the world's leading
 original equipment manufacturers (OEMs) in the communications, medical,
 industrial instrumentation, and high-end computer sectors. Sanmina's
 end-to-end solution includes design engineering and product development, New
 Product Introduction, global materials management, PCB and backplane
 fabrication and assembly, custom memory and DSP modules, enclosure systems,
 cable assembly, complete system integration and test, global order fulfillment
 and distribution, and end-of-life product services. OEMs benefit from this
 model by dealing with a single-source supply-chain and global supply-base,
 which helps them achieve cost efficiencies in material acquisition as well as
 flexibility to reduce lead times.
     Safe Harbor Statement
     The foregoing, including the discussion regarding the company's future
 prospects contain certain forward-looking statements that involve risks and
 uncertainties, including uncertainties associated with economic conditions in
 the electronics industry, particularly in the principal industry sectors
 served by the company, changes in customer requirements and in the volume of
 sales to principal customers, the ability of the company to assimilate
 acquired business and to achieve the anticipated benefits of such
 acquisitions, and competition and technological change. The company's actual
 results of operations may differ significantly than those contemplated by such
 forward-looking statements as a result of these and other factors, including
 factors set forth in the company's 2000 Annual Report on Form 10-K filed with
 the Securities Exchange Commission on December 18, 2000, and the company's
 most recent quarterly 10-Q Report dated May 11, 2001.
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SOURCE Sanmina Corporation