Jabil Transitions Massachusetts Plant

April 19, 2001
Jabil Transitions Massachusetts Plant19 April 2001
St. Petersburg, FL

Forward - Looking Statement

Jabil Circuit, Inc. (NYSE:JBL) today announced it will transition its Billerica, Massachusetts plant into a focused New Customer Development site. The plant will be designated specifically for New Customer Development (NCD) services tailored to the needs of small, fast-growing companies with emerging technologies.

The NCD services will encompass Jabil's design, test and material management competencies as well as prototyping and new product introduction. The operation will focus solely on the needs of emerging enterprises in their early lifecycle stages and will provide the bridge to Jabil's global footprint of high volume mass production facilities as the company's products and volumes mature.

In preparation for this focused mission, certain higher volume production at the site will shift to other Jabil facilities. As a result of this change, a workforce reduction at the plant of approximately 250 jobs will begin in June.

"After careful consideration, the decision has been made to transition our Massachusetts plant to a site focused exclusively on new customer development," said Ron Rapp, Chief Operating Officer. "To ensure continued growth and solid financial performance, Jabil is adjusting and responding to customer needs. For our Massachusetts plant, this means changing the mission and finding strength in being able to offer significant and valuable services tailored specifically to rapidly developing companies."

The NCD site will service start-up companies with high growth potential. It will enable Jabil to engage with emerging technology customers, providing them with needed flexibility and resources. Ideally, an NCD customer will eventually transition to one of Jabil's global volume sites.

"The NCD solution will provide high-growth potential customers access to Jabil's comprehensive services and will allow the Massachusetts site to become a diversified portfolio of long term opportunities for Jabil." said Bill Peters, Senior Vice President, Operations. "The site will also allow NCD customers to tap into Jabil's pipeline of services, including a highly leveraged supply chain, extensive global footprint and virtual manufacturing model."

About Jabil

Jabil Circuit, Inc. is an electronic manufacturing services provider for international electronics companies in the communications, personal computer, peripheral, consumer and automotive markets. Jabil offers circuit design, board design from schematic, prototype assembly, volume board assembly, system assembly, repair and warranty services from facilities in North America, Europe, Asia and Latin America.

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 Jabil Circuit's most recently filed SEC documents such as the Form 10-K, filed 11/28/00.

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