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Nortel Networks chooses Solectron to produce new multiservice edge products

Jun 17, 2004

Manufacturing role builds on involvement with collaborative design and new product introduction services

Solectron Corporation (NYSE: SLR) said it has been chosen to provide manufacturing services for Nortel Networks* new Multiservice Provider Edge (MPE) 9000 series of Internet Protocol (IP)/Multiprotocol Label Switching (MPLS) multiservice edge products. The award of the manufacturing to Solectron is subject to the execution of a binding agreement by Solectron and Nortel Networks.

Solectron has collaborated with Nortel Networks on the MPE 9000 from the earliest design phases through the new product introduction to the current ramp up to volume manufacturing.

"Working with Solectron has been a key factor in our bringing the MPE 9000 to market in half the time it typically takes to launch such a sophisticated product," said Dave Rice, Nortel Networks Wireline vice president of Supply Chain Operations. "With the engagement on some aspects of the design, and prototyping prime ship from day one, teams from both companies worked side-by-side and we were able to avoid many of the unforeseeable problems that can crop up in developing and introducing a networking device of this significance."

"We are pleased to play an even greater role in such a strategically important new product line for Nortel Networks," said Mike Cannon, Solectron president and chief executive officer. "By collaborating throughout the design and new product introduction phases, we have been able to achieve the aggressive time-to-market target of this product. The decision to use Solectron to manufacture MPE 9000 products demonstrates our ability to add value throughout the product life cycle, starting with the earliest phase of product design."

Solectron anticipates that the initial manufacturing phase will commence in the second half of calendar 2004.

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