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Jabil Completes Philips Agreement Begins Consumer Manufacturing for Philips

18 November 2002
St. Petersburg, FL

Forward - Looking Statement

Jabil Circuit, Inc. (NYSE: JBL) announced that on November 15, 2002, it finalized portions of its agreement with Royal Philips Electronics (NYSE: PHG). The €4 billion, four-year agreement was announced on August 28, 2002. The completed portion of the acquisition includes six manufacturing plants.

The company said it expects to complete the transfer of the remaining three sites by the end of January 2003 and to accomplish the full transfer of sites and business pursuant to the agreement by the end of its fiscal year in August 2003.

"We are pleased to have closed major portions of this transaction ahead of schedule. We do not anticipate any obstacles to completing the rest of the transaction and remaining sites. We expect to commence the transition of other manufacturing business by the end of January 2003," said Chris Lewis, Chief Financial Officer. Lewis said the acquisition cost approximately $210 million and that the company used its existing cash balances to fund the purchase.

Lewis said the company expected the transaction to be neutral to earnings for its first fiscal quarter ending November 30, 2002. (On September 19, 2002, Jabil provided an outlook for its fiscal first quarter of 2003 and estimated core earnings per share would range from $0.14 to $0.16.) The company will provide guidance for its second fiscal quarter on December 19, 2002 during its first quarter earnings conference call.

Jabil will provide design and engineering services; new product introduction (NPI), prototype and test services; procurement, PCB assembly and final assembly and integration of a wide range of Philips consumer products, including consumer televisions and television/videocassette recorders; speaker, audio, projection and digital transmission systems; broadband networks; set top boxes and monitors.

About Jabil

Jabil Circuit, Inc. is one of the world's largest electronic manufacturing services providers. Jabil manufactures for international electronics companies in the automotive, computing and storage, consumer, instrumentation and medical, networking, peripheral 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.

This news release contains various forward-looking statements, including those regarding Jabil's anticipated negotiation, documentation and consummation of the transaction described below 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 enter into acceptable binding, definitive documentation setting forth the specific terms of the transaction described above; 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; 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.