Sanmina Sells PC Business to Foxconn

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SAN JOSE, Calif. Sanmina-SCI Corporation signed a definitive agreement with Foxteq Holdings Inc., a member of the Foxconn Technology Group, to sell certain assets of its personal computing business, along with associated logistics services in Hungary, Mexico, and the U.S. Beyond this sale to fellow EMS provider Foxconn, Sanmina also plans to transition a Mexico-based personal computing operation to PC-maker Lenovo Group.

Sanmina expects the Foxteq transaction to value at $80 million to $90 million. Following customary regulatory approvals, the deal should be settled in Sanmina's third fiscal quarter, ending in June 2008. The personal computing business no longer fits with Sanmina's long-term strategy, according to Jure Sola, chairman and CEO, Sanmina. The EMS provider undertook several operating initiatives to reduce net assets invested in the PC unit, he added, which will allow Sanmina to see financial benefits from the Foxteq and Lenovo deals at about $200 million.

Sanmina entered a non-binding memorandum of understanding with Lenovo Group Limited, separate from the Foxteq sale. The memorandum states that Sanmina will transition responsibility of its Monterrey, Mexico, personal computing operation to Lenovo. It also will sell certain related assets to the PC manufacturer.

For more information, visit www.sanmina-sci.com. Further details will be provided at the company's Q'02 2008 earnings conference call in April, and through appropriate Securities and Exchange Commission (SEC) filings.