BancBoston Robertson Stephens Reiterates Buy Rating, Raises Estimates on SLR.

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 14, 1999--

BancBoston Robertson Stephens managing director and senior electronic manufacturing products and services analyst J. Keith Dunne today reiterated his Buy rating and raised estimates on Solectron Corporation (NYSE:SLR).

Solectron, headquartered in Milpitas, Calif., is the world's largest turnkey manufacturer of electronic components and systems, mostly for original equipment manufacturers in the data communications, workstation, personal computers, peripherals, and telecommunications industries.

"We are reiterating our Buy rating on Solectron. The company announced plans to acquire SMART Modular in a pooling transaction valued at over $1.5 billion. In addition, as we expected, Solectron reported strong fourth quarter 1999 earnings per share of $0.33 and revenues of $2.4 billion, a 45 percent and 42 percent increase from last year, respectively," said Dunne.

"For the year, earnings per share rose 38 percent to $1.14 on a 59 percent gain in revenues of $8.4 billion," said Dunne. "Reflecting increased outsourcing opportunities, we are raising our fiscal year 2000 earnings-per-share estimates to $1.60 from $1.55, excluding an estimated $0.10 accretion from the pending SMART acquisition, which is expected to close by year's end."

SMART is a leading designer and manufacturer of memory modules, embedded computers and communications cards, generating $1.0 billion in sales from workstation/server, desktop PC and telecommunications markets.

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