Sanmina Acquires InterWorks

Sanmina Acquires InterWorks

Acquisition of DSP and Memory Modular Solutions Provider Advances Sanmina’s End-To-End System Solutions Strategy for the Communications Market

June 27, 2000 04:00 PM Eastern Time

SAN JOSE, Calif., June 27 /PRNewswire/ — Sanmina Corporation SANM , a leading electronics contract manufacturer, announced today it has completed the cash purchase of InterWorks, a leading designer and manufacturer of standard and custom modular subsystems, focused on meeting the growing needs of the networking equipment and communications sectors. The acquisition broadens Sanmina’s supply chain and technology capabilities and further leverages Sanmina’s advanced process engineering strengths in PCB fabrication and assembly. Located in Orange County, California, InterWorks is projected to achieve approximately $50 million in revenues this year. It will operate as a business unit of Sanmina’s EMS Technology Division.

Founded in 1995 and privately held, InterWorks designs, manufactures, tests and distributes a complete line of Digital Signal Processor (DSP) modular solutions and advanced memory products to leading electronics original equipment manufacturers serving the networking and telecommunications markets. DSP modules use semiconductor products from Texas Instruments and Motorola among others, and their advanced standard and custom memory products incorporate Flash, DRAM, SDRAM and SRAM from various memory suppliers. The company utilizes its patented FRAMM (folded rigid assembly manufacturing method) technology in a number of products. Key product applications include routers/switches, cable decoders, wireless base stations, Voice over IP, and other Internet-related applications. Alcatel, Cisco, Ericsson, Lucent, Motorola, and Nortel are among their customers.

Jure Sola, Sanmina’s Chairman and Chief Executive Officer, said, “We believe InterWorks, which has an active product inventory of more than 300 assemblies — one of the largest subsystem offerings in the industry, is a perfect fit. Similar to Sanmina, the company offers a complete outsource solution and has a premier customer base in the communications industry. This acquisition will provide additional value in our goal of delivering end-to-end solutions to our customers. We expect to see strong growth in the modular and subsystem product market, and our global manufacturing capacity will support this growth.”

Robert G. Allison, President and Chief Executive Officer of InterWorks, said, “As a recognized leader in the electronics contract manufacturing industry, we believe Sanmina will help us further leverage our engineering, design, manufacturing, test and distribution capabilities as well as increase our global market penetration. The modular approach for memory and DSP solutions allows system designers and product managers to increase performance, product scalability and offer new features in shorter product cycles.”

Commenting further, Dr. Sundar M. Kamath, Sanmina’s Vice President, Advanced Technology (EMS), said, “InterWorks represents an important element of our EMS Technology Division strategy of offering design services and engineered solutions to customers who are building the Internet infrastructure. InterWorks’ competence in design and product engineering will be fully complemented by Sanmina’s advanced capabilities in high density circuit cards, including embedded passives, fine-line and micro-via technologies, and by our proven experience in surface mount assembly of fine pitch components, including leaded packages, BGAs and chip scale packages. The InterWorks facility in Orange County will serve as the design and new product introduction center for modular solutions. Volume production will be transferred to Sanmina’s global assembly facilities.”

About Sanmina Corporation
Sanmina Corporation is a leading electronics contract manufacturing services company providing a full spectrum of integrated, value-added electronic manufacturing services. Services include the manufacture of complex printed circuit board assemblies, custom-designed backplane assemblies and subassemblies, multi-layered printed circuit boards, custom cable and wire harness assemblies, enclosures and the testing and assembly of electronic subsystems and systems. The company provides these services to a diversified base of leading OEMs in the communications, industrial and medical instrumentation and computer sectors of the electronics industry. Sanmina common stock trades on the Nasdaq National Market under the symbol: SANM. Information regarding Sanmina can be found on its World Wide Web page located at http://www.sanmina.com.

About DecisionPoint International
DecisionPoint is a global leader in M&A advisory services for middle-market technology companies in the services, software, and communication sectors. For additional information on DecisionPoint, visit www.DecisionPointInt.com.

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