Jabil Plans $40-Million Oakland County Expansion

March 29, 2000
Jabil Plans $40-Million Oakland County Expansion29 March 2000
Auburn Hills, Michigan

Forward - Looking Statement

Jabil Circuit, Inc. (NYSE:JBL) has acquired a 31-acre tract of land in the Pinnacle Corporate Center in Auburn Hills from TMW Enterprises Inc. to expand its manufacturing operations in the Great Lakes region, according to Randy Haight, Jabil's vice president of business development.

The $40-million expansion program is scheduled for completion in early 2001, Haight said. The project will join an existing 125,000-square-foot Jabil facility off Giddings Road south of Harmon Road with a new 200,000-square-foot plant to be built on the property acquired from TMW Enterprises at the southeast corner of Giddings and Harmon.

Haight said the new 325,000-square-foot manufacturing and product development campus in Auburn Hills will permit Jabil to expand its production capacity for automotive and other high-tech customers in the Midwest.

Jabil currently employs nearly 1,200 people in its high-tech circuit-board assembly facilities in Michigan. A provider of electronics manufacturing services (EMS), Jabil had annual revenues of more than $2 billion last year with facilities on four continents.

Jabil recently was awarded a Michigan tax credit valued at more than $14.5 million over a 20-year period by the Michigan Economic Growth Authority (MEGA) for the expansion project. The City of Auburn Hills subsequently approved an eight-year, 50 percent tax abatement for the project.

According to an economic analysis done by the University of Michigan, state officials said the expansion is expected to create as many as 1,100 new jobs over the life of the MEGA agreement for workers throughout Michigan. About 640 of the new jobs will result from increased purchases from Michigan suppliers and others who receive income from Jabil Circuit.

Oakland County Executive L. Brooks Patterson congratulated Jabil on its decision to expand its operations in Michigan and bring additional high-tech jobs to Automation Alley.

"Oakland County's Automation Alley has gained an international reputation for attracting and retaining high-tech enterprises such as Jabil Circuit," Patterson said. "We worked closely with the Michigan Economic Growth Authority and the City of Auburn Hills to provide a package of tax credits and incentives that permitted Jabil to strengthen its commitment to Michigan."

Auburn Hills City Manager Bill Ross said the city was pleased that Jabil had elected to expand in Auburn Hills. "We know that a number of communities outside of Oakland County were bidding for Jabil's expansion dollars," he said. "Auburn Hills is proud of the business-friendly environment that we've developed and the growing number of high-tech businesses that have chosen to locate here."

Final plans for Jabil's new Michigan manufacturing complex, including architectural designs and construction schedules, are still under development, Haight said, adding that the company hopes to break ground for the project sometime in May.

In addition to the manufacturing campus under development at Giddings and Harmon roads, Jabil also has a 15,000-square-foot warehouse on Josyln Road and a 55,000-square-foot manufacturing plant near Auburn and Opdyke roads, both in Auburn Hills.

Haight said that the strategic importance of the automotive industry for Jabil and a growing need for electronic manufacturing services in the Great Lakes region were important reasons behind Jabil's decision to expand its Michigan operations.

"Jabil was one of the world's first electronic manufacturing services providers to achieve QS-9000 certification, which has enabled us to develop important customer relationships within the auto industry," Haight said. "Our Michigan facilities are supplemented by production capacity in Brazil, China, Mexico and Scotland and enable us to provide automobile manufacturers with just-in-time service on a global basis."

About Jabil

Jabil Circuit, Inc. is an electronics manufacturing services provider for electronics companies in the communications, personal computer, computer peripheral, automotive and consumer markets. The company provides its customers with circuit design, board design from schematic, mechanical design, prototype assembly, volume board assembly, system assembly, and distribution and repair services from facilities in North America, Europe, Latin America and Asia.

This release contains certain forward-looking statements, which are subject to a number of risks and uncertainties. Some factors that could cause actual results to differ materially include: business conditions and growth in the contract manufacturing industry and the general economy; variability of operating results; dependence on a limited number of customers; limited availability of components; dependence on certain industries; variability of customer requirements; and other risk factors described in the company's most recently filed SEC documents such as the Form 10-K, filed 11/12/99.

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