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Jabil and Seagate Enter into Definitive Agreement for Repair & Warranty Services

26 September 2002
St. Petersburg, FL

Forward - Looking Statement

Jabil Circuit and Seagate today announced they have entered into a definitive agreement providing for the execution of a multi-year service agreement where Jabil will provide repair and warranty services for Seagate's Personal Storage and Enterprise Storage hard disk drives. Jabil will acquire Seagate's repair and warranty facility, located in Reynosa, Mexico. Jabil Circuit, Inc. will perform its obligations under the agreements through its wholly owned subsidiary Jabil Global Services (JGS).

The agreement expands Jabil's penetration in the rapidly growing data storage market and widens its global reach in the repair and warranty service sector. This strategic alliance and acquisition is consistent with JGS's objectives to expand into new markets and win business from industry leading customers. During the term of the agreement Jabil will be the primary provider of repair and warranty services for Seagate disk drives.

"We are excited to expand our expertise and capability in the area of disk drive repair and to establish a long-term relationship with an industry leader like Seagate," said Hartmut Liebel, Jabil Global Services Executive Vice President. "This relationship will add a low-cost services site and a distribution center to our footprint allowing us to better serve high growth customers in the Americas. The Seagate Reynosa employees are highly skilled and their expertise will enhance our position as a leader in the repair and warranty industry."

Seagates's Reynosa employees and management will be offered continued employment with Jabil's service group. In addition, JGS will lease a nearby facility in McAllen, Texas to provide support and freight consolidation services to the Reynosa site.

Financial terms of the agreement were not disclosed. The transaction is expected to close by the end of October.

About Jabil Global Services

Jabil Global Services is a wholly-owned subsidiary of Jabil Circuit, Inc., an electronic manufacturing services provider for international electronics companies in the automotive, computing and storage, consumer, instrumentation and medical, networking, peripherals and telecommunications markets. Jabil offers circuit design, board design from schematic, prototype assembly, volume board assembly, system assembly, repair and warranty services from facilities in the Americas, Europe, and Asia. Further information about Jabil can be found on the World Wide Web at jabil.com.

About Seagate

Seagate is the worldwide leader in the design, manufacturing and marketing of hard disk drives for Enterprise, PC and Consumer Electronics applications. The Company is committed to delivering award-winning products, customer support and reliability, to meet the world's growing demand for information storage. Seagate can be found around the globe and at www.seagate.com.

Seagate, Seagate Technology and the Seagate logo are registered trademarks of Seagate Technology LLC. All other trademarks are the property of their respective owners. Seagate reserves the right to change, without notice, product offerings or specifications.

This news release contains various forward-looking statements, including those regarding Jabil's anticipated negotiation, documentation and consummation of the transaction described and the potential benefits to Jabil from this transaction. These statements are based on Jabil's current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include: the ability to negotiate and document certain remaining material economic terms of the agreements governing the transactions described and the ability to consummate the transactions described; the length and severity of the current economic downturn and Jabil's ability to manage customer demand through the downturn; fluctuations in operating results; changes in technology; competition; managing rapid growth; managing rapid declines in customer demand; managing the integration of businesses we acquire; risks associated with international sales and operations; retaining key personnel; our dependence on a limited number of customers; the consolidation of our customer base; and business and competitive factors generally affecting the electronic manufacturing services industry, our customers and our business. There are also other risk factors that we may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended August 31, 2001, any subsequent Reports on Form 10-Q and Form 8-K and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.