Solectron starts exchange for most of 7.25% ACES

New York, April 8 - Solectron Corp. announced it is offering to exchange up to 95% of its 7.25% adjustable conversion rate equity security units in the ACES structure for stock and cash.

For each $25 unit, Solectron is offering 2.5484 shares and $1.97 in cash.

The Milpitas, Calif., electronic manufacturing services company said the exchange is intended to settle the ACES early. They currently are scheduled to mature on Nov. 15, 2004.

Assuming Solectron's stock remains below $9.81, holders would receive 2.5484 shares at the maturity of the ACES if they do not accept the offer.

The exchange covers up to 41.8 million of the ACES or $1.045 billion. There are currently 44 million outstanding or $1.1 billion.

If the offer is over-subscribed, tenders will be accepted on a pro rata basis.

The offer runs through midnight ET on May 5.

The exchange agent is U.S. Bank NA. The information agent is Georgeson Shareholder Communications Inc. (banks and brokers call 212 440-9800; others call 800 905-7166).

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