IDWK International Displayworks

SINGAPORE, Nov. 30 /PRNewswire-FirstCall/ -- Flextronics International Ltd. (NASDAQ:FLEX) today announced the completion of the acquisition of International DisplayWorks, Inc. (NASDAQ:IDWK). IDW stockholders will receive 0.5653 of a Flextronics ordinary share for each share of IDW common stock. The enterprise value of the transaction is approximately $243 million. Mike McNamara, chief executive officer of Flextronics, said, "One of our company's central growth strategies for augmenting our services offering is the thoughtful acquisition of synergistic companies. IDW is an ideal fit for Flextronics in many ways. It strengthens our overall vertical integration capability and significantly adds to our ability to design and manufacture small form factor liquid crystal displays. We are extremely pleased with the completion of this acquisition and are eager to bring the talented IDW team onboard with Flextronics, including Tom Lacey, who will head our components group." Tom Lacey, chairman and chief executive officer of IDW, said, "Flextronics is unmatched in its ability to offer industry-leading components technologies. We are pleased to be joining an organization that not only offers IDW employees an opportunity to be part of a leading, respected global employer but to also extend to our customers the tremendous economies of scale that can only come from an operationally efficient organization such as Flextronics." Lacey added, "The management team and the board are pleased with the value that this transaction provides our shareholders. In fact, the voting shareholders overwhelmingly supported the merger by voting more than 96% in favor of the merger." As previously announced, IDW stockholders approved the transaction at a special meeting held on November 28, 2006. Effective after the close of market today, trading in IDW common stock on the NASDAQ Global Market will cease. Each registered IDW stockholder will receive a letter of transmittal that will inform them where to deliver IDW stock certificates in order to receive Flextronics ordinary shares. IDW stockholders who hold their shares in street name will not receive a letter of transmittal; these stockholders' accounts will be credited with their new Flextronics ordinary shares within approximately three business days. Flextronics expects to issue approximately 26.2 million shares in connection with the acquisition. The acquisition of IDW broadens Flextronics' components business platform, expands and diversifies the company's components offering, and increases its customer portfolio. About Flextronics 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 digital, industrial, infrastructure, medical and mobile OEMs. With fiscal year 2006 revenues from continuing operations of US$15.3 billion, Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 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. More information is available on Flextronics's website: http://www.flextronics.com/ . Safe Harbor Statement This press release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements include statements relating to the expected synergies and benefits to Flextronics and IDW and its customers from the acquisition and the effects of the acquisition on Flextronics's vertical integration capability. These forward-looking statements are based on information available to Flextronics as of the date of this press release. Current expectations, forecasts and assumptions involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks and uncertainties include a variety of factors, some of which are beyond Flextronics's control. In particular, such risks and uncertainties include that IDW may not be successfully integrated into Flextronics's operations, the possibility that the expected synergies from the acquisition may not be fully realized or may take longer to realize than expected, that growth in the EMS business may not occur as expected or at all, and that production difficulties may be encountered with IDW's products. Information concerning additional factors that could cause results to differ materially from those projected in the forward-looking statements is contained in the "Risk Factors" section of Flextronics's Registration Statement on Form S-4/A (SEC File No. 333-137749), which was filed with the Securities and Exchange Commission ("SEC") on October 25, 2006, as well as those described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the reports on Form 10-K and 10-Q that Flextronics has filed with the SEC. The forward-looking statements in this press release are based on current expectations and Flextronics undertakes no obligation (other than as required by law) to update or revise these forward-looking statements to reflect subsequent events or circumstances. DATASOURCE: Flextronics International Ltd. CONTACT: Thomas J. Smach, Chief Financial Officer, +1-408-576-7722, or or Renee Brotherton, Senior Director of Corporate Marketing, +1-408-576-7189, or , both of Flextronics International Ltd. Web site: http://www.flextronics.com/

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