Flextronics Expands Across the Globe

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SAN JOSE, Calif. and RALEIGH, N.C. - Flextronics International Ltd. entered into a definitive agreement to acquire Palo Alto Products International Pte. Ltd., a full-service product development company that provides industrial design, mechanical engineering and manufacturing services for the high-tech and consumer markets.

In addition to design and engineering services, Palo Alto Products has three manufacturing operations: a manufacturing facility in Thailand; an injection mold and die building operation in Taiwan; and a manufacturing and plastic injection molding facility in Texas. Flextronics will continue to maintain Palo Alto`s strategic relationship with Delta Electronics, a supplier of electronic components. Products designed by Palo Alto include housings for PDAs, laptops, desktop computers, display devices, communications equipment and consumer electronics.

"This acquisition will significantly strength- en Flextronics` engineering and technology services by adding mechanical and industrial design to our scope of integrated services," said Michael Marks, chairman and CEO of Flextronics. "Palo Alto Products has a unique integration of design services and manufacturing capabilities that complement Flextronics` core competencies."

Jim Sacherman, CEO of Palo Alto Products, commented, "We are pleased to become part of Flextronics International`s global operations. [Their] vast global manufacturing resources will allow us to better meet the needs of our multinational OEM customers."

The acquisition was expected to close on April 4, and the newly acquired company will be renamed Flextronics Design.

In other company news, Flextronics announced that its presence on the Eastern seaboard has expanded to more than 600,000 sq. ft. with the acquisition of four facilities in North Carolina`s Research Triangle. The facilities acquired are Circuit Board Assemblers, Newport Technology Inc., EMC International and Summit Manufacturing. Flextronics intends to quickly consolidate all four companies and accompanying 300 employees into a new facility in Youngsville, N.C.

Circuit Board Assemblers is a 160-employee electronics manufacturer. Newport Technology Inc. is a contract manufacturer (CM) specializing in mid-volume printed circuit board (PCB) assemblies. EMC International provides engineering and agency testing services to local OEMs. Finally, Summit Manufacturing offers small prototyping and cable-assembly services.

"Flextronics` strong presence along the Eastern seaboard will provide flexibility and speed to our rapidly expanding customer base with complex manufacturing, advanced engineering capabilities, and state-of-the-art prototyping, agency testing and cable assembly services," said Mike McNamara, the company`s president of the Americas.