Solectron Wins Multi-Year Manufacturing Services Contract With LSI for Storage Systems

Business Wire, August 20, 2007

MILPITAS, Calif. -- Solectron Corporation (NYSE:SLR), a leading provider of integrated electronic supply chain services including design, manufacturing and aftermarket services, today announced a multi-year contract with LSI Corporation (NYSE:LSI) for manufacturing services of the company's Engenio[TM] storage systems. LSI will complete the transfer of operations to Solectron by the first half of 2008. Terms of the deal were not disclosed.

"LSI is a premier provider of silicon-to-systems data storage, and we believe our expertise in managing complex supply chains in collaboration with LSI will help the company achieve its goals of greater efficiencies and allow it to scale its business without increasing capital investments," said Doug Britt, executive vice president, Sales and Account Management, Solectron.

Solectron will provide manufacturing services for the LSI Engenio[TM] storage systems. Solectron has a long history serving global brands in the data storage segment. Solectron's award-winning Lean Six Sigma processes, the Solectron Production System[TM], will play a central role in helping LSI achieve time-to-market goals and cost benefits.

"As a contract manufacturing and services partner, Solectron is expected to play a core part of our business strategy to realize operational efficiencies that will better serve our customers and improve our competitive position," said Phil Bullinger, senior vice president and General Manager, Engenio Storage Group, LSI Corporation. "Solectron's long history in data storage systems, its leadership in build-to-order and configure-to-order manufacturing, and its end-to-end Lean supply chain solutions made Solectron the right partner."

Safe Harbor

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, the timing of the transfer of manufacturing operations from LSI to Solectron. These forward-looking statements involve a number of risks and uncertainties, and are based on current expectations, forecasts and assumptions. Actual outcomes and results could differ materially. These risks and uncertainties include: unanticipated challenges or delays relating to manufacturing transfers; risks associated with international sales and operations; product issues; business disruptions; our ability to retain key personnel; the present and future strength of the worldwide economy overall, and in the telecommunications and other electronics technology sectors in particular; variations in demand forecasts and orders; and market and segment risk. For a further list and description of risks and uncertainties, see the reports filed by Solectron with the Securities and Exchange Commission. Solectron disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Solectron

Solectron Corporation is one of the world's largest providers of complete product lifecycle services. We offer collaborative design and new product introduction, supply chain management, Lean manufacturing and aftermarket services such as product warranty repair and end-of-life support to leading customers worldwide. Solectron works with the world's premier providers of networking, telecommunications, computing, storage, consumer, automotive, industrial, medical, self-service automation and aerospace and defense products. The company's industry-leading Lean Six Sigma methodology (Solectron Production System[TM]) provides OEMs with quality, flexibility, innovation and cost benefits that improve competitive advantage. Based in Milpitas, Calif., Solectron operates in more than 20 countries on five continents and had sales from continuing operations of $10.6 billion in fiscal 2006. For more information, visit us at www.solectron.com.

Note: SOLECTRON and the Solectron logo are registered trademarks of Solectron Corporation. The Solectron Production System, SPS, and Solectron Supply Chain Solutions Suite are also trademarks of Solectron Corporation. LSI and Engenio are trademarks of LSI Corporation. Other names mentioned are trademarks, registered trademarks or service marks of their respective owners.