Jabil Circuit Announces Manufacturing Partnership With Valeo

    ST. PETERSBURG, Fla.--March 25, 2002--Jabil Circuit, Inc. announced today a manufacturing partnership with Valeo which includes the acquisition of certain manufacturing assets and a three year supply agreement. This project has been submitted for consultation to the European Works Council.
    Subject to employee consultation and execution of definitive contracts and agreements, Jabil will acquire Valeo's electronics manufacturing operations in Meung-sur-Loire, France and Wemding Germany. Valeo will also transfer electronics manufacturing production from its Switches & Detection Systems operation in Fort Worth, Texas and its Valeo Electrical Systems Inc., Juarez, Mexico facility to the Jabil Automotive Group operations in Chihuahua, Mexico.
    Jabil will gain 90,000 square feet of manufacturing capacity in France and 15,000 square feet of manufacturing capacity in Germany to be dedicated to automotive electronics production. Under the proposed terms of the deal, approximately 950 Valeo employees will become employees of Jabil Circuit.
    Jabil will manufacture a broad base of automotive electronics for Valeo products and integrated systems, including body controllers, various sensor and switch assemblies, vehicle access and immobilizing, lighting, climate control, wiper and cooling systems.
    The combined annual revenues anticipated under the supply agreement are estimated to be $300 million. Other financial terms of the transaction were not disclosed.
    "We believe this strategic manufacturing partnership with Valeo will set the standard for electronics manufacturing in the global automotive industry," said Brian Althaver, Jabil Automotive Group Vice President. "This partnership represents a major milestone in our strategy to increase Jabil's participation in the global market for automotive electronics. The acquisition of the French and German operations will significantly expand our base of manufacturing for the automotive industry in Europe." Althaver said that Jabil would establish a regional `Center for Automotive Excellence' in Meung-sur-Loire.

    Jabil Circuit Inc.

    Jabil Circuit, Inc. is an electronic manufacturer of circuit board assemblies and systems for global electronics product companies. Jabil offers manufacturing and assembly services, including: circuit design, board design from schematic, prototype assembly, volume board assembly and system assembly services. The company operates manufacturing facilities in 22 locations in 12 countries around the world. More information on Jabil can be found on its website: http://www.jabil.com.

    Valeo

    Valeo is an independent industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 143 plants, 53 R&D centers, 10 distribution centers and employs 70,000 people in 25 countries worldwide.

    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.