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Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
1.408.481.8000 phone
1.408.481.7781 fax

  NEWS RELEASE

 
Trimble Chooses Solectron as Global Manufacturing Partner
Solectron Intends to Purchase Trimble's Manufacturing Assets in Sunnyvale, California

SUNNYVALE and Milpitas, Calif., April 13, 1999 -- Trimble
(NASDAQ: TRMB), a world leader in radio frequency (RF) products enabled by Global Positioning System (GPS) technology and Solectron Corporation (NYSE: SLR), a worldwide provider of customized electronics manufacturing solutions (EMS) to original equipment manufacturers (OEMs) today jointly announced a letter of intent for Solectron to acquire Trimble's manufacturing assets in Sunnyvale, California, and to assume full manufacturing responsibility for all of its GPS and related RF technology products. The plan is subject to the negotiation and completion of a definitive agreement.
 
"As a result of this expected partnership, Solectron will enter the rapidly growing GPS market and significantly expand our global RF design and manufacturing expertise," said Dr. Ko Nishimura, Solectron's chairman, president and CEO. "Our intent is to integrate the Trimble operation into our existing California campus within six to 12 months, to leverage efficiencies and resources. The GPS market is a new sector for Solectron and we are pleased to partner with the global leader in this industry and at the same time grow our balanced customer portfolio."
 
"Trimble is pleased to have chosen Solectron as our manufacturing partner. As an international leader in the electronic manufacturing services industry, we intend to leverage Solectron's purchasing power and manufacturing efficiencies to lower production costs," said Steven W. Berglund, Trimble's president and CEO. "We also believe that Solectron will bring new levels of sophistication in the areas of quality and supply chain responsiveness. In return, Trimble can strengthen its focus on meeting customers' needs with superior product design, support and service."
 
As part of the proposed agreement, Solectron intends to provide Trimble a full range of integrated services across the entire product life cycle including: design consultation, early prototyping, new product introduction management, volume printed circuit board and systems assembly for the next three years.
 
Solectron intends to offer employment to approximately 250 manufacturing, engineering and related support associates currently working at the Trimble facility in Sunnyvale. Solectron will also assume certain assets including manufacturing and test equipment and inventory, and will begin manufacturing operations in a leased 85,000 square-foot building on the Trimble campus.
 
This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. In particular, while the companies have executed a non-binding letter of intent, there is no assurance that the parties will reach a definitive agreement. In the event that the companies do not receive necessary government approvals or fail to satisfy conditions for closing, the transaction will not occur. Other potential risks and uncertainties that could cause actual events to differ materially are included in the SEC filings, including Form 10-K and Form 10-Q for Trimble and Solectron, respectively.
 
About Solectron
 
Founded in 1977, Solectron Corporation (www.solectron.com) provides integrated solutions that span the entire product life cycle from pre-production planning and design, to manufacturing, distribution, and end-of-life product service and support for the world's leading electronics OEMs. Solectron offers its customers competitive outsourcing advantages such as access to advanced manufacturing technologies, shortened product time-to-market, reduced cost of production and more effective asset utilization.
 
The company has received 200 quality and service awards from its customers in addition to the 1997 and 1991 Malcolm Baldrige National Quality Awards. Solectron is the first company to win the Baldrige Award for Manufacturing twice in the 11-year history of the national program. The company has more than 31,000 associates in 21 manufacturing facilities worldwide with more than 6 million square feet of capacity. Revenues for the first six months of fiscal 1999, ended February 26, were US$3.85 billion.
 
About Trimble
 
Trimble is a world leader in designing and developing innovative products enabled by GPS technology. The company provides end-user and OEM solutions for diverse applications including surveying, mapping/GIS, agriculture, mining, military, commercial aviation, automotive, vehicle tracking and timing. Founded in 1978, Trimble now holds more than 200 U.S. patents on GPS and related technology, with over 180 additional patents pending. Located in Sunnyvale, Calif., Trimble has been adding value to GPS since 1984.

Media Contact:   LeaAnn McNabb of Trimble: 408-481-7808

Media Contact:   Michael Donner of Solectron: 408-956-6688




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