Solectron Corp. Completes Acquisition of FORCE COMPUTERS Inc.; Merger Expands Outsourcing Services to Customers of Both Companies

Business Wire, Nov 26, 1996

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 26, 1996--Solectron Corp. (NYSE: SLR) and FORCE COMPUTERS Inc. today announced the completion of their merger, thus creating one of the strongest companies in the industry to serve the increasing demands of Original Equipment Manufacturers (OEMs).

The merger was completed via a pooling-of-interests for approximately $205 million or approximately 3.5 million shares of Solectron stock.

FORCE is a leading designer and provider of OEM computer platforms for the embedded market, while Solectron is a leading provider of electronics manufacturing services from pre- to post-manufacturing. The merger unites the design and manufacturing capabilities of these two leaders into one global company providing the total outsourcing solution for their combined customers and prospects.

"Our customers are requiring a more sophisticated range of electronics manufacturing services, particularly in the growing systems market," said Dr. Koichi Nishimura, Solectron's chairman, president and chief executive officer. "Having access to FORCE's considerable expertise in design and engineering will expand Solectron's capabilities to meet our customers' total outsourcing needs."

"The strategic advantage of this merger for us is access to Solectron's worldwide, large-scale manufacturing capabilities and services," said Sven Behrendt, chairman and chief executive officer of FORCE COMPUTERS Inc. "This will enable us to offer broader services, increasing the dimension of manufacturing capabilities available to our customers."

Each company will continue to serve its existing customer base while leveraging the combined capabilities to serve customers in new and enhanced ways. FORCE COMPUTERS Inc., a wholly owned subsidiary of Solectron, will continue to operate under its own name, and maintain its headquarters in San Jose as well as its other locations.

FORCE COMPUTERS Inc. is the leading designer and manufacturer of systems and boards for embedded applications. The company is ISO 9001 certified with more than 15 years of experience delivering embedded solutions based on SPARC, Pentium, Pentium Pro, PowerPC and 680x0 technologies to customers throughout the world.

FORCE COMPUTERS' corporate headquarters are in San Jose, Calif.; European headquarters are located in Munich, Germany; and Japanese headquarters are in Tokyo, Japan. Sales, service and support are provided on a worldwide basis via direct offices and through a network of distributors and representatives. FORCE's corporate phone number is 408/369-6000 and the Web address is http://www.forcecomputers.com

Founded in 1977, Solectron is a global supplier of pre-manufacturing, manufacturing, and post-manufacturing services to electronics OEMs. These services include product design and engineering, prototype development, supply base and logistics management, board and sub-system assembly, systems assembly and service, testing and product upgrade and repair. The company received the 1991 Malcolm Baldrige National Quality Award and has received more than 100 other quality and service awards from its customers.

Solectron has U.S. manufacturing operations in California, Massachusetts, North Carolina, Texas, and Washington; European manufacturing operations in France, Germany, and Scotland; and Asian manufacturing operations in Malaysia, as well as a program office in Japan. Solectron's worldwide headquarters are located at 777 Gibraltar Drive, Milpitas, California 95035. Solectron's corporate phone number is 408/957-8500 and the Web address is http://www.oakridge.com/Solectron. Certain financial information and press releases are available by facsimile by calling 800/858-7058. -0-

Note to Editors: Pentium and Pentium Pro are registered trademarks of Intel Corp. PowerPC is a trademark of International Business Machines Corp. SPARC is a trademark of SPARC International Inc.

CONTACT: FORCE COMPUTERS, Inc.

Chris Williams, 408/369-6220

Juergen Jaekel, 408/369-6113

or

Solectron Corp.

Nancy Callahan, 408/956-6688

Susan Wang, 408/956-6571