Sanmina to Buy Certain Assets of E-M-Solutions

Purchase of Manufacturing Operations Expands Sanmina's

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Sep 24, 2001, 01:00 ET from Sanmina Corporation

    SAN JOSE, Calif., Sept. 24 /PRNewswire/ -- Sanmina Corporation
 (Nasdaq:   SANM), a leading electronics contract manufacturer, announced today
 that it has received approval from the U.S. Bankruptcy Court for the Northern
 District of California as the highest and best bidder for the purchase of
 assets of E-M-Solutions, Inc., a privately held international electronic
 enclosure manufacturer.  These assets include certain manufacturing operations
 in the United States as well as the stock of E-M-Solutions' subsidiaries
 incorporated in Mexico and Northern Ireland.
     The transaction is subject to clearance under the federal
 Hart-Scott-Rodino Antitrust Improvements Act (HSR).  Because the HSR waiting
 period is shortened to 15 days in bankruptcy situations, the transaction is
 expected to close in early October.  The cash purchase price will be up to
 $110.65 million, $20.0 million of which is subject to reduction based upon a
 post-closing audit of E-M-Solutions' balance sheet.  For Sanmina's 2002 fiscal
 year, revenues generated from this acquisition are expected to be between
 $200 to $300 million and the transaction is expected to be accretive before
 any infrequent charges.
     Jure Sola, Sanmina's chairman and chief executive officer, said, "The
 purchase of these ISO-certified operations, which include both advanced
 engineering design as well as electronic enclosure manufacturing facilities
 and electro-mechanical integration services, will greatly support our total
 systems solutions capabilities in key regions of the United States, Europe and
 Mexico.  Importantly, both companies target similar, critical market sectors:
 high-end computing, data storage/networking, and telecommunications.  The two
 companies also share a commitment to continuous improvement and a
 comprehensive quality management system.  As a result, leading original
 equipment manufacturers (OEMs), such as EMC, LTX and Sun Microsystems are key
 E-M-Solutions' customers.
     "We are pleased to welcome E-M-Solutions' customers, vendors and employees
 to the Sanmina family and are committed to achieving a smooth transition,"
 Sola concluded.
     Company Profile
     Founded in 1980, Sanmina Corporation ( provides a
 cost-efficient, design and manufacturing solution to the world's leading
 original equipment manufacturing (OEMs) in the communications, medical,
 industrial instrumentation, and high-end computer sectors.  Sanmina's complete
 end-to-end solution includes design, engineering, circuit fabrication of bare
 printed circuit boards, circuit board and backplane order fulfillment, 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 August 10, 2001.
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SOURCE Sanmina Corporation