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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 and Solectron Finalize Manufacturing Agreement

Solectron to Acquire Trimble's Manufacturing Assets in Sunnyvale, California


SUNNYVALE and Milpitas, Calif., Aug. 11, 1999 -- Trimble (NASDAQ:TRMB) and Solectron Corporation (NYSE:SLR) jointly announced today the signing of a definitive agreement for Solectron to assume full manufacturing responsibility of Trimble's Global Positioning System (GPS) and related radio frequency (RF) technology products for the next three years. As part of the agreement, Solectron will acquire Trimble's manufacturing assets in Sunnyvale, California. Financial details were not disclosed.
 
Trimble and Solectron originally announced their intent to enter into a manufacturing partnership on April 13, 1999.
 
"We are extremely pleased to be working with Solectron, the international leader in the electronic manufacturing services industry," said Steve Berglund, Trimble's president and CEO. "Trimble's management can now strengthen its focus on technology innovation and addressing our markets' needs."
 
"To address the new wave of outsourcing opportunities presented by telecom equipment makers and their increasingly aggressive outsourcing strategies, Solectron is investing in technical expertise such as RF design, engineering and testing skills," said Dr. Ko Nishimura, Solectron's chairman, president and CEO. "This announcement with Trimble allows us to not only gain a valuable customer and manufacturing partner, but also additional RF knowledge and skills to build on our existing capabilities."
 
As part of the agreement, Solectron will provide Trimble a full range of integrated services across the entire product life cycle including design consultation, prototyping, New Product Introduction management and volume printed circuit board and systems assembly.
 
Solectron has offered employment to approximately 250 of Trimble's manufacturing, engineering and related support personnel. On August 16, Solectron will assume certain assets including manufacturing and test equipment and inventory, and will begin manufacturing operations in 55,000 square-feet of leased manufacturing space on Trimble's Sunnyvale campus. Solectron intends to integrate this operation into its Milpitas campus within six to 12 months.
 
This release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. 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 more than 210 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 33,000 associates in 23 manufacturing facilities worldwide with more than 7 million square feet of capacity. Revenues for the first nine months of fiscal 1999, ended May 28, were US$6.0 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, construction, 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




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