SAN JOSE, Calif., and HUNTSVILLE, Ala. -- Sanmina Corporation (NASDAQ NM: SANM) and SCI Systems, Inc. (NYSE: SCI), two leading electronics contract manufacturers (EMS), announced today that they have entered into a definitive merger agreement in which each outstanding share of SCI common stock will be converted into 1.36 shares of Sanmina common stock. Based on Sanmina’s closing price of $22.14 on July 13, 2001, the transaction is valued at $30.11 per share of SCI common stock, or approximately $6.0 billion in the aggregate including the assumption of debt. The merger is expected to be a tax-free exchange of common shares. The transaction, which is subject to the approval of Sanmina’s and SCI’s stockholders and certain U.S. and international regulatory authorities, is expected to close either late in Sanmina’s fiscal fourth quarter or at the beginning of its first fiscal quarter of 2002, subject to timing of completion of regulatory review. The merger of Sanmina and SCI creates the world’s premier EMS company with over $14 billion in revenue and approximately 100 global manufacturing facilities in over 20 countries. The combination is expected to yield synergies of $100 - $150 million from cost savings and from leveraging vertical integration capabilities. The transaction is expected to be accretive to Sanmina’s fiscal 2002 earnings. Sanmina Corp. SCI Systems Inc.