PEMSTAR secures new expanded Line of Credit

Company Reaffirms Fiscal Fourth-Quarter Guidance PEMSTAR Inc. (Nasdaq:PMTR), a provider of global engineering, product design, manufacturing and fulfillment services to technology, industrial and medical companies, announced that it has secured a new $90 million domestic revolving line of credit with Congress Financial Corporation, a subsidiary of Wachovia Bank, N.A., Fleet Capital Corporation and U.S. Bank National Association. This larger three-year facility will replace the company's $80 million existing domestic revolving line of credit under terms and conditions more favorable to the company. In addition, PEMSTAR completed a sale-leaseback transaction relating to its worldwide headquarters and key manufacturing center in Rochester, Minn., with W.P. Carey & Co. LLC (NYSE:WPC) on March 28, 2003. The proceeds of approximately $12.5 million will be used to reduce debt and fund operations. "PEMSTAR is pleased that four major financial institutions share our continued confidence in our company. The new credit facility combined with the sale-leaseback improves our financial position forfuture growth and enhances our flexibility to better serve our customers," said Greg Lea, PEMSTAR's EVP and CFO. With this announcement, PEMSTAR also reaffirmed guidance for its fiscal 2003 fourth quarter ended March 31, 2003. The company expects fourth-quarter net sales to slightly exceed prior guidance of $155 to $160 million, and earnings to be in the range of prior guidance of breakeven to a net loss of ($.06) per share. This compares with net sales of $145.7 million and a net loss of ($1.28) per share for the fourth quarter of fiscal 2002. PEMSTAR will report fiscal fourth-quarter and full-year results at market close on May 7, 2003.Source: PCBnewsline