Jabil Circuits (JBL)

[EZ2]

Jabil Circuit to Acquire Alcatel PBX Manufacturing Site in Brest, France

PARIS & ST. PETERSBURG, Fla., Mar 7, 2002 (BUSINESS WIRE) -- Alcatel (CGEP.PA)(ALA) and Jabil Circuit (JBL) today announced the signing of a memorandum of understanding to outsource the European manufacturing of Alcatel's PBX and IP-based PCX communication systems to Jabil Circuit. The agreement, subject to approval from various regulatory bodies and appropriate consultation with worker councils, will transfer Alcatel's Brest, France manufacturing facility to Jabil.

Jabil Circuit will acquire the assets of the Brest manufacturing plant and continue to manufacture Alcatel's private branch exchange and IP-based private communications exchange corporate telephone systems. Seven hundred Alcatel employees will be transferred to Jabil Circuit upon the final closing of the agreement, which is expected to occur by end of April. Financial terms of the transaction were not disclosed.

"This three-year outsourcing agreement expands and solidifies Jabil's manufacturing relationship with Alcatel," said Timothy L. Main, Jabil president and chief executive officer. "The Brest site is engaged in very advanced system integration and test services in addition to PCBA assembly and NPI services. We believe these advanced capabilities will be a strategic addition to our global business development activities." Jabil will supplement the operation with a Jabil business development organization and will begin efforts to diversify the manufacturing base at the site.

"This outsourcing agreement is the best option for the development of the Brest factory, for continued supply of quality products to Alcatel customers as well as to optimize the load of the factory. With changes in the PBX market, it became critical for Alcatel to find a partner that contributes manufacturing and purchasing power in a competitive market environment," said Olivier Houssin, president Alcatel e-Business Group. Olivier Houssin characterized the transaction as also "in line" with Alcatel's strategy to focus on its core competencies including R&D, product and solution design, as well as marketing and sales.

About Alcatel

Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of EURO 25 billion in 2001 and 99,000 employees, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com

About Jabil Circuit

Jabil Circuit, Inc. is an electronic manufacturer of circuit board assemblies and systems for global electronics product companies. Jabil offers manufacturing and assembly services, including circuit design, board design from schematic, prototype assembly, volume board assembly and system assembly services. The company operates manufacturing facilities in 22 locations in 12 countries around the world. More information on Jabil can be found on its website: http://www.jabil.com

Alcatel Press Contact
Francoise Grumberg /HQ Tel : [phone]
[e-mail]
Alcatel Investors Relations
Claire Pedini Tel : [phone]
[e-mail]
Laurent Geoffroy Tel : [phone]
[e-mail]
Pascal Bantegnie Tel : [phone]
[e-mail]
Chris Welton Tel : [phone]
[e-mail]
Peter Campbell Tel : [phone]
[e-mail]
Jabil Circuit Press Contact
Lisa Allison Tel : [phone]
[e-mail]
Jabil Circuit Investors Relations
Pam Schultz Tel : [phone]
[e-mail]

This news release contains various forward-looking statements, including those regarding Jabil's anticipated negotiation, documentation and consummation of the transaction described and the potential benefits to Jabil from this transaction. These statements are based on Jabil's current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include: the ability to negotiate and enter into acceptable binding, definitive documentation setting forth the specific terms of the transaction described; Jabil's ability to successfully integrate the operations acquired from Alcatel; the length and severity of the current economic downturn and Jabil's ability to manage customer demand through the downturn; fluctuations in operating results; changes in technology; competition; managing rapid growth; managing rapid declines in customer demand; managing the integration of businesses we acquire; risks associated with international sales and operations; retaining key personnel; our dependence on a limited number of customers; the consolidation of our customer base; business and competitive factors generally affecting the electronic manufacturing services industry, our customers and our business. There are also other risk factors that we may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended August 31, 2001, any subsequent Reports on Form 10-Q and Form 8-K and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Jabil Circuit, Inc., St. Petersburg
Press: Lisa Allison, 727/803-3314
[e-mail]
or Investors Relations: Pam Schultz, 727/803-3349
[e-mail]
or
Alcatel
Press: Francoise Grumberg/HQ, [phone]
[e-mail]
or Investors Relations:
Claire Pedini, [phone]
[e-mail]
or Laurent Geoffroy, [phone]
[e-mail]
Pascal Bantegnie, [phone]
[e-mail]
or Chris Welton, [phone]
[e-mail]
or Peter Campbell, 972/519-4347
[e-mail]

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KEYWORD: FLORIDA FRANCE INTERNATIONAL EUROPE
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
HARDWARE
MANUFACTURING
ELECTRONIC
GAMES/MULTIMEDIA
SOFTWARE
MARKETING
AGREEMENTS
SOURCE:
Jabil
Circuit,
Inc.