Flextronics Expands Relationship with Lenovo; Establishes Manufacturing Partnership for European Computing Products from Hungary

December 8, 2009

SINGAPORE, Dec. 8 /PRNewswire-FirstCall/ -- At an event held today in Sarvar, Hungary, Flextronics (Nasdaq: FLEX) announced that it has signed an agreement with Lenovo to expand the scope of its existing Electronics Manufacturing Services (EMS) relationship.Flextronics currently provides mechanical and system solutions to Lenovo in China as well as manufacturing services in Brazil. As part of the arrangement,Flextronics enlarges its geographic service area for Lenovo products to include Europe and increases the number of EMS services it delivers for Lenovo.Flextronics' Sarvar facility will manufacture computing products for Lenovo including commercial desktop, server and workstation products. It will also expandFlextronics'capabilities in Hungary, a strategic area for computing products within Europe. Terms of the deal were not disclosed.

"We are very excited about this Lenovo business expansion and believe our global ODM and EMS capability is the competitive advantage enabling this kind of strategic customer growth," said Sean Burke , president of Flextronics Computing. "This deal also allows Lenovo to take advantage of our high-volume PC manufacturing facility located in a competitively positioned region within Europe that offers superior logistics capabilities. Overall, it is the kind of expanded partnership that speaks to the significant competitive offering we provide to world leading PC companies such as Lenovo."

"The new manufacturing facility in Hungary represents another important step in our strategic partnership withFlextronics. Our further collaboration inEurope allows us to centralize our activities and optimize our supply chain, while providing superior service to our European customers," said Gerry Smith , senior vice president, Lenovo Global Supply Chain.

Flextronics' commitment to offer world-class and competitive solutions to its customers is exemplified in this Lenovo deal. For example,Flextronicscustomized its services to Lenovo to include a vendor managed inventory (VMI) hub managed by Flextronics Global Services that will be housed on-site with manufacturing services and will feed production lines on a real-time basis. This is a service not typically offered by EMS providers, but rather is added via third-party basis from a remote location.

Flextronics Hungary was selected for the production location of this business based on its ideal physical market location and proximity toFlextronics'Centre of Excellence for computing in Zala, Hungary.


Headquartered in Singapore (Singapore Reg. No. 199002645H),Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on delivering complete design, engineering and manufacturing services to automotive, computing, consumer, industrial, infrastructure, medical and mobile OEMs.Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in 30 countries on four continents. This global presence provides design and engineering solutions that are combined with core electronics manufacturing and logistics services, and vertically integrated with components technologies, to optimize customer operations by lowering costs and reducing time to market. For more information, please visit www.flextronics.com.


Warren Ligan or Kevin Kessel, Investor Relations, +1-408-576-7985,
investor_relations@flextronics.com, Renee Brotherton, Vice President, Corporate
Communications, +1-408-576-7189, renee.brotherton@flextronics.com, all of Flextronics

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