MSL Awarded Outsourcing Contract by Leading Automotive Industry Supplier

    CONCORD, Mass.--June 3, 2003--MSL , a global electronics manufacturing and supply-chain services company, announced today that a Fortune 150 automotive electronics supplier has selected MSL as a strategic supplier for complex printed circuit board assemblies. MSL's ability to meet the customer's complex manufacturing needs and demanding quality requirements and to provide additional value by leveraging their design strength and global supply chain capabilities were critical factors in the decision. MSL will provide support from its Valencia, Spain operations.
    MSL Valencia is well positioned to meet the stringent needs of automotive suppliers. The breadth and depth of the site's capabilities played a key role in MSL's selection; Valencia's strengths include an award winning electronics design center, full component traceability, sophisticated failure analysis and robust test engineering expertise. The site expects to attain the ISO TS16949 certification for automotive electronics during the fourth quarter of 2003. This award also broadens and further diversifies Valencia's multi-sector customer portfolio, which includes companies from avionics, industrial products, retail automation, communications equipment, storage and consumer products industries.
    "We are delighted that MSL has been selected as a strategic partner by a tier-one leader in the automotive industry," said Bob Bradshaw, MSL's Chairman, CEO, and President. "Automotive electronics is an important growth market and target segment for MSL. This strategic relationship confirms our strength in the automotive sector and our ability to take advantage of growth opportunities in this market."
    Automotive electronics is one of the fastest growing segments of the electronics manufacturing services (EMS) industry. According to New Venture Research, $2.7 billion of automotive electronics assembly was outsourced in 2002. The automotive segment is expected to increase at a 15% compound annual growth rate through 2007, 50% higher than the total EMS industry growth rate. This growth can be attributed to a substantial increase in the electronic content of automobiles and to the increasing use of global EMS providers by automotive suppliers to help them get products to market faster and reduce their total cost.

    About MSL:

    Manufacturers' Services Limited (MSL) is a multi-national company that manufactures electronic hardware for companies that sell branded electronic equipment or utilize electronic components in their products. The company builds a variety of products, including medical devices, avionics, industrial controls and communications equipment. MSL also manages the worldwide acquisition of components and supplies for the products it manufactures and provides complementary design, logistics and repair services. MSL's customers come from a diverse set of industries including industrial equipment, commercial avionics, automotive electronics, retail infrastructure, medical products, voice and data communications, networked storage, office equipment, computers and computer peripherals. The company's services allow electronics manufacturers to get products to market faster, reduce total cost, and achieve superior operational results. MSL distinguishes itself by providing strong capabilities in complex electronics manufacturing, build-to-order assembly, high-speed automated manufacturing, global order fulfillment as well as a superior customer experience characterized by significant mind share, personalized service, customized and flexible solutions, and rapid response. MSL is headquartered in Concord, Massachusetts. For more information, please visit the company's website at http://www.msl.com/.

    Statements contained in this press release which are not historical facts are forward-looking statements which involve risks and uncertainties which could cause actual results to differ materially from those expressed in the forward looking statements. A number of important factors could cause actual results to differ materially from those forward-looking statements. These factors include systems failures, technological changes, volatility of securities markets, government regulations and economic conditions, competition in the areas in which the company conducts its operations as well as the risks contained in the company's filings with the Securities and Exchange Commission. The forward-looking statements made in this release relate only to events as of the date on which the statements are made and the company assumes no obligation to update these forward-looking statements.