Flextronics and Dow Chemical announce strategic relationship to develop advanced packaging technologies; joint development of new technologies will enable each company to improve its service offering.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 19, 1995--Flextronics International Ltd. and The Dow Chemical Co. Tuesday announced a strategic relationship whereby both companies will co-develop new and advanced packaging and interconnect technologies.

Working with Flextronics' microelectronics and advanced packaging division, Dow Chemical will combine its expertise in materials assembly and chip packaging with Flextronics' expertise in interconnect and electronics assembly. New technologies jointly developed by the companies will then be used by each to improve its offering to its respective customer base.

Additionally, with the help of Dow's polymer expertise, Flextronics intends to install plastic injection molding equipment in its factories and provide design engineering services for customers who wish to produce plastic components. The first facility scheduled to install the equipment is in Xixiang, in the People's Republic of China.

"Dow has an expertise unparalleled in the assembly of advanced packaging materials," stated Michael E. Marks, chairman and chief executive officer, Flextronics International.

"The new technologies that come out of the joint development effort should give each company an advantage in its respective market. And with Dow's expertise in plastic injection molding, we will be able to provide this capability in-house to help us further implement the Demand Flow Technology manufacturing concept for our full-systems assembly customers," continued Marks.

"The deal is significant for both companies," remarked Joseph N. Carr, Global Director of Marketing, Advanced Materials Electronics, Dow Chemical Company. "Dow's long term goals dovetail nicely with those of Flextronics'. There's a unique synergy between Flextronics, coming from the electronics assembly side, and Dow Chemical, coming from the materials side, and I don't think we could have found a better match of strategic direction and skill set."

Dow manufactures and supplies more than 2,400 product families, including chemicals and performance products, plastics hydrocarbons and energy, and consumer specialties -- which include agricultural and consumer products. The company operates 113 manufacturing sites in 30 countries and employs about 41,000 people around the world.

Flextronics International Ltd. (NASDAQ: FLEXF) offers advanced contract manufacturing services of sophisticated electronics for large OEMs in the medical, consumer, computer and communications industries. Flextronics offers a full range of services including microelectronics packaging and PCBA design and fabrication, materials procurement, inventory management, PCB assembly, final system box build and distribution. The company has facilities in North America, Asia and Europe.

CONTACT: Flextronics International

Mike Shields, 408/428-1327