[April 14, 2005]

Solectron Hosts Environmental Compliance Roundtable

MILPITAS, Calif. --(Business Wire)-- April 14, 2005 -- Industry Experts from the UK Department of Trade and Industry, American Electronics Association, and Allen & Overy Discuss RoHS Compliance Strategies, Tour Solectron's Facility

Solectron Corporation (NYSE:SLR), a leading provider of electronics manufacturing and integrated supply chain services, today hosted an environmental compliance roundtable discussion with representatives from the UK Department of Trade and Industry (DTI), the American Electronics Association (AeA) and London-based law firm Allen & Overy at Solectron's Milpitas, Calif., headquarters. The event was held in anticipation of new regulations banning the sale of six hazardous substances in Europe. Solectron customers were invited to the event, which also included a tour of Solectron's environmental compliance operations.

Participants discussed the challenge of environmental compliance, focusing on Europe's Restriction of Hazardous Substances (RoHS) regulations. RoHS bans the sale of six hazardous substances in Europe as of July 1, 2006: lead, mercury, cadmium, hexavalent chromium, PBB and PBDE.

Steve Andrews, from DTI, presented an update on the UK's implementation of RoHS. The UK is a leader in developing and communicating a regulatory strategy for lead-free and recycling laws in the European Union. Jennifer Shepherd, environmental sustainability manager at Solectron, discussed the company's Market Ready offering, which is designed to help OEM customers meet RoHS and other regulation requirements. The AeA provided further insights into how the European laws will affect U.S.-based companies selling products internationally, and Allen & Overy, specializing in environmental law, discussed the legal ramifications of non-compliance.

"Current legislation and compliance requirements are complex, evolving and unavoidable -- impacting the entire supply chain," said Shepherd. "New laws, such as RoHS, will cause operational, business and product-reliability challenges, forcing OEMs to keep up with changing requirements. However, non-compliance will pose a deep threat to our OEM customers who are not prepared."

Solectron is working with industry leaders such as AeA and partnering with its OEM customers to ensure the conversion plan and transition approach Solectron has developed helps customers address compliance requirements efficiently and effectively -- while manufacturing reliable, quality products.

Roundtable participants highlighted how new environmental requirements will impact the electronics business throughout Europe and around the world. The industry leaders discussed best practices supply chain partners should establish for RoHS and other environmental compliance laws so that businesses are not disrupted and products meet regulatory requirements within appropriate deadlines.

Legislation targeting products manufactured with lead and other potentially hazardous substances is changing the way electronics makers conduct business worldwide. While RoHS is part of the first wave of environmental legislation targeting the electronics industry, other laws have passed such as the Waste Electrical and Electronic Equipment (WEEE) initiative, which requires producers to recycle waste in Europe. In addition, countries such as China, Japan and the United States are considering similar laws.

"Solectron recognizes the importance of RoHS compliance as it relates to the broader dynamic of changing regulations and global barriers to market," added Shepherd. "To ensure we have environmentally compliant offerings for our customers, we have been developing RoHS compliance solutions for more than six years."

In 1999, Solectron began lead-free soldering research, adding legislative engagement efforts with customers and trade associations worldwide the following year. In 2003, Solectron began supply chain assessment and education, and in 2004 deployed its Market Ready turnkey solution. Solectron continues to work with industry associations and leading experts to ensure its offerings provide OEM customers with the expertise and solutions required to comply with the different global regulations.

About Solectron

Solectron (www.solectron.com) provides a full range of worldwide manufacturing and integrated supply chain services to the world's premier high-tech electronics companies. Solectron's offerings include new-product design and introduction services, materials management, product manufacturing and product warranty and end-of-life support. The company is based in Milpitas, Calif., and had sales from continuing operations of $11.64 billion in fiscal 2004.

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