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Jabil and NEC Enter into Outsourcing Relationship for Broadcasting Systems and Video Equipment

28 February 2003
Tokyo, Japan and St. Petersburg, Florida

USA-headquartered Jabil Circuit, Inc. (NYSE:JBL) and NEC Corporation (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701) today announced a multi-year manufacturing supply agreement and transfer of NEC Gotemba, Ltd manufacturing facility in Japan to Jabil.

Under the terms of the Share Purchase Agreement, Jabil will provide full manufacturing and system assembly production services to NEC Corp.'s Broadcast and Video Equipment Operations (BVO) Unit. Jabil will manufacture and assemble transmission and studio equipment used in television and radio broadcasting, as well as video cameras and systems for monitoring and multimedia applications. The agreement allows Jabil to participate in the growth of broadcast products driven by a Japanese-mandated transition from analog to digital devices.

"This is a tremendous agreement for Jabil Japan. The NEC Gotemba transaction will provide customer and product sector diversification while adding strong competencies in a targeted market," said Jabil Japan chairman and representative director, Isamu Kamata. "This is a big step towards Jabil Japan's primary objective of working with top Japanese OEMs to support their design and manufacturing needs."

"This partnership with NEC is key for Jabil Japan. We look forward to manufacturing for the global leader in television transmitters and the Japanese market leader in TV and radio transmitters, relay equipment and high sensitivity cameras," said Kimio Inagaki, president and director of Jabil Japan.

Inagaki indicated that Jabil would lease the facility in Gotemba, which is approximately 60 miles from Tokyo, and hire approximately 250 NEC employees. Jabil and NEC anticipate closing the transaction by July 2003. Financial terms of the deal were not disclosed.

"NEC holds a strong position in the domestic digital broadcasting systems market and its business is set to further expand not only in Japan but also in overseas markets. Through an alliance with an EMS company, NEC intends to improve the price competitiveness of its products, production lead-time and flexibility to better handle fluctuation of market demands, by leveraging NEC's leading-edge production techniques and technological capabilities with Jabil's global manufacturing capabilities, purchasing power and product introduction expertise. The alliance will enable Jabil to obtain an extensive base for broadcasting infrastructure systems backed by NEC's technologies and experienced human resources." Said Kaoru Yano, executive vice president of NEC and head of the NEC's telecommunication business unit.

NEC is the top supplier of total business solutions for broadcasting stations in Japan, with a history of supplying broadcasting systems for 78 years to 103 countries around the world.