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IBM, SOLECTRON SIGN CONTRACTS FOR TRANSFER OF SOME OPERATIONS IN BORDEAUX AND CHARLOTTE

 IBM, SOLECTRON SIGN CONTRACTS FOR TRANSFER
 OF SOME OPERATIONS IN BORDEAUX AND CHARLOTTE
 PURCHASE, N.Y., Aug. 18 /PRNewswire/ -- IBM (NYSE: IBM) and Solectron Corp. (NYSE: SLR) today announced they have entered into agreements providing for the transfer by IBM to Solectron of a plant building in Charlotte, N.C., and a plant site in Bordeaux, France. Solectron will pay approximately $55 million in cash for the transferred facilities, plus assume certain liabilities associated with the facilities.
 The agreements represent the culmination of studies announced in February. Subject to the fulfillment of certain conditions in the agreements, the transaction is expected to close in the fall of 1992.
 The Charlotte operation to be acquired by Solectron includes a 175,000-square foot building, equipment and about 70 acres in the northwest portion of IBM's 1200-acre University Research Park site. IBM retains the principal portion of its Charlotte facility.
 In France, IBM France will transfer to Solectron land, buildings and equipment, including a 319,000 square foot electronic sub-assembly production facility located on a 240 acre site in Bordeaux. Approximately 150,000 square feet of the Bordeaux facility will be sublet back to IBM for a period of three years. In addition, IBM France will retain a 10-percent equity interest in Solectron's French subsidiary, formed for the purpose of operating the Bordeaux facility.
 As part of the agreements, Solectron and IBM may enter into additional agreements providing Solectron with access to certain of IBM's manufacturing technology on terms to be negotiated.
 Under a related vendor agreement, IBM will purchase from Solectron electronic sub-assemblies produced at the plants.
 Some IBM employees currently working in the operations to be transferred to Solectron will be offered jobs with Solectron. They have the option of accepting the Solectron offer or remaining with IBM.
 -0- 8/18/92
 /CONTACT: Leonard Zanoni of Solectron, 408-956-6577, or Paul Neuman of IBM, 914-697-6537/
 (IBM SLR) CO: IBM Corporation; Solectron Corp. ST: New York, California IN: CPR SU: CON


TS -- NY016 -- 0842 08/18/92 09:28 EDT
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Publication:PR Newswire
Date:Aug 18, 1992
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