Valeo Service to Create New CLIMTEST2 Diagnostic Device

    ROCHESTER, Minn.--Sept. 17, 2002--PEMSTAR Inc. , a leading provider of global engineering, manufacturing and fulfillment services to technology companies, announced today that PEMSTAR B.V., a wholly-owned subsidiary based in Almelo, the Netherlands and Valeo Service, a Branch of Valeo, have extended their engineering and manufacturing agreement for the creation of the new CLIMTEST2 automotive diagnostic device.
    Valeo is one of the world's leading automotive suppliers in both the original equipment and aftermarket segments. The company designs, manufactures and sells components, integrated systems, and modules for cars and trucks. Valeo works with all of the major automakers from North America, Europe and Asia. Valeo Service offers the automotive aftermarket a series of dedicated services, such as technical and commercial training for distributors and repairers, as well as diagnostic tools and repair methods.
    PEMSTAR has been designing and manufacturing diagnostic tools for automotive air-conditioning systems for Valeo Service since 1999. The CLIMTEST2 is an improved version of the existing CLIMTEST diagnostic tool for the air-conditioning system in a vehicle. The diagnostic tool is part of the Valeo Clim Service offering to automotive service centers for preventative maintenance, and contributes to improved productivity in the centers. At its introduction in 1999, the original CLIMTEST was nominated for the "les Grands Prix Internationaux de l'Innovation," and in 2000 it received the ESEF European Engineering Award. A working prototype of the CLIMTEST2 was displayed at the EquipAuto show in Paris in fall of 2001, and attracted a lot of positive interest.
    Under the new agreement, PEMSTAR will enhance and upgrade the functionality of the device, and will start producing branded models of the CLIMTEST2 with related accessories at the PEMSTAR B.V. facility in Almelo.
    "In 1999, we selected PEMSTAR because of their proven track record in the development and manufacture of handheld devices," said Amar Cheballah, technical center manager at Valeo Service. "For the creation of the original CLIMTEST in 1999, we needed an EMS provider that could help us with true 'concept to customer' services. Consequently, when the need appeared to create the improved CLIMTEST2, we logically dealt with PEMSTAR again."
    Paul van Schendel, PEMSTAR vice president, and general manager of PEMSTAR B.V., stated, "Valeo Service has been an important customer since the start of PEMSTAR B.V. in 1999. Our team worked closely with their team to create the initial CLIMTEST -- from the idea to the finished product. The resulting solution has been widely accepted as an excellent service tool in the automotive community, and we are pleased to be given the opportunity to extend our partnership with Valeo Service, and to contribute further to their success in the automotive aftermarket."

    About 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 144 plants, 52 R&D centres, 10 Distribution centres and employs around 72,000 people in 25 countries worldwide.

    About PEMSTAR:

    PEMSTAR Inc. (www.pemstar.com) provides a comprehensive range of engineering, manufacturing and fulfillment services to customers on a global basis through facilities strategically located in the United States, Mexico, Asia, Europe, South America and the Middle East. The Company's service offerings support customers' needs from product development and design, through manufacturing to worldwide distribution and aftermarket support. PEMSTAR has over one million square feet in 17 facilities in 15 locations worldwide.

    This press release may contain "forward-looking" statements. These forward-looking statements, including statements made by Mr. Cheballah and Mr. van Schendel, may contain statements of intent, belief or current expectations of PEMSTAR Inc. and its management. Such forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements. In addition to factors discussed above, risks and uncertainties that may cause such differences for PEMSTAR include but are not limited to: a continued recession or continued decline in economic conditions; rumors or threats of war; actual conflicts or trade disruptions; changes in demand for electronics manufacturing services; changes in demand by major customers due to cancellations, reductions or delays of orders; shortages or price fluctuations in component parts; difficulties managing expansion and integrating acquired businesses; increased competition and other risk factors listed from time to time in PEMSTAR's Securities and Exchange Commission filings, including but not limited to Exhibit 99 of PEMSTAR's Annual Report on Form 10K for the fiscal year ended March 31, 2002, and PEMSTAR's quarterly reports on form 10-Q filed with the SEC.