Jabil Completes Acquisition of Manufacturing Electronics Business from Varian, Inc.

11 March 2005
St. Petersburg, FL

Forward - Looking Statement

Jabil Circuit, Inc. (NYSE: JBL) announced today it has completed its acquisition of the electronics manufacturing business of Varian, Inc. (Nasdaq: VARI). A definitive agreement was announced February 7th.

Jabil said the acquisition will allow the company to continue to grow and expand its focus on the medical, military/aerospace and instrumentation business sectors. The company also noted that these sectors have high mix and low volume characteristics that a focused business model will address.

The purchase price for the acquisition was approximately $195 million, subject to adjustment based on the amount of certain working capital in the acquired business at closing. Jabil management said the transaction will be accretive to earnings during fiscal year 2005 and that they will provide specific guidance during its second quarter earnings announcement on March 17th.

About Jabil

Jabil is an electronic solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil helps bring electronics products to the market faster and more cost effectively by providing complete electronic product supply chain management around the world. With more than 40,000 employees and facilities in 19 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL." Further information is available on the company's website: jabil.com.

This news release contains forward-looking statements, including those regarding services to be provided in the future to customers of the acquired business, the growth of the markets serviced by such acquired business, the continued business operations of the acquired business in the future and the financial impact of the transaction on Jabil's future earnings. These statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to: our ability to successfully integrate the operations acquired from Varian and retain the customers of the acquired business; changes in technology; competition; anticipated growth for the acquired business and us and our industry may not occur; managing rapid growth; managing any rapid declines in customer demand that may occur; our ability to provide quality services; our ability to service growing markets; 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; other 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, 2004, 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.