Frost & Sullivan Names Celestica Electronics Manufacturing Services Company of the Year

NAPLES, Fla.--May 2, 20055, 2005--Frost & Sullivan has selected Celestica for its 2005 Electronics Manufacturing Services (EMS) Company of the Year Award. The award acknowledges Celestica's success in its market diversification, year-over-year revenue growth, technology leadership, and its strategic, balanced global footprint.

Frost & Sullivan will present the award tonight at the Excellence in Industrial Technologies Banquet. Held in Naples, Fla., the ceremony honors world-class companies for their outstanding performance and achievements in their respective industries. An annual event, the banquet recognizes the quality and merit of distinguished individuals and companies.

The 2005 Electronics Manufacturing Services Company of the Year Award recognizes Celestica's leadership and achievements in the following areas:

Strong Year-Over-Year Growth:

In 2004, Celestica's revenue increased by 31 percent over 2003. The company also worked to maximize return on working capital, in spite of being in a low margin business, by applying aggressive asset management and cost control. Important measures include the company's continued implementation of Lean principles and Six Sigma initiatives across its global manufacturing network.

Market Diversification:

Celestica's acquisition of Manufacturers' Services Limited (MSL) in March 2004 added a new dimension to Celestica's customer mix. MSL's strong customer base in medium complexity markets such as consumer and industrial electronics, as well as in the aerospace, defense and automotive sectors, has provided Celestica with a strategic foothold in these markets.

Customer Satisfaction:

Celestica's quarterly business reviews for customer satisfaction measurement have provided the company with a keen insight into its customers' business plans. To standardize feedback, Celestica uses an outbound survey engagement process developed by a professional third party to obtain customer opinions.

"Such consistent and reliable feedback from customers has helped Celestica to make key decisions, such as shifting 70 percent of its manufacturing footprint to lower-cost geographies to support customer needs," says Vikram Shanbhag, Frost & Sullivan research analyst. "Throughout this transition, the company has maintained technological and manufacturing excellence, and has received numerous customer appreciation awards."

Technology Leadership:

Celestica continues to play a key role in helping the electronics industry to prepare for the European Union's Restriction of Hazardous Substances (RoHS) legislation. This legislation will have a profound impact on the electronics industry, as it requires the removal of lead (and five other substances) from many electronics products, beyond stated limits.

"Celestica is closely collaborating with its customers to support their compliance with these new standards," notes Shanbhag. "In addition to establishing strong relationships with all partners across the supply chain to ensure that the transition takes place smoothly, the company also introduced its Green Services(TM) offering to help OEMs with their end-to-end product conversion needs."

Frost & Sullivan presents this award to the company that has demonstrated excellence in all operations -- business development, competitive strategy, and leadership -- within its industry. The award recognizes its outstanding management, consistent growth, and positive social and economic impact on local and national communities and customers. It also recognizes exceptional customer service, which is crucial to success.

About Celestica

Celestica is a world leader in the delivery of innovative electronics manufacturing services (EMS). Celestica operates a highly sophisticated global manufacturing network with operations in Asia, Europe and the Americas, providing a broad range of integrated services and solutions to leading OEMs (original equipment manufacturers). Celestica's expertise in quality, technology and supply chain management, and leadership in the global deployment of Lean principles, enables the company to provide competitive advantage to its customers by improving time-to-market, scalability and manufacturing efficiency.

For further information on Celestica, visit its website at http://www.celestica.com.

The company's security filings can also be accessed at http://www.sedar.com and http://www.sec.gov.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.