Flextronics & Raymarine enter 5yr outsourcing relationship

Flextronics (NASDAQ: FLEX), a global leading Electronics Manufacturing Services (EMS) provider and Raymarine, one of the world’s largest suppliers of marine electronic products to the leisure boating market, today announced an agreement whereby Flextronics will provide vertically integrated manufacturing services to Raymarine. The services, which will be provided initially through Flextronics’ Hungary facility, will include printed circuit board assembly, box build, plastics, metals, printed circuit board, logistics, and test engineering services. The value of the agreement is estimated at approximately US$ 500 million over a five-year period. Flextronics will not assume any Raymarine buildings or assets, and no employees of Raymarine will be transferred to Flextronics.

Malcolm Miller CEO of Raymarine said, “We took this decision to ensure that we could not only maintain and grow our gross margins but access the latest technologies and skills in supply chain management. In working with our manufacturing partner, Flextronics, we expect to make significant improvements in our product realization process, new product introduction, materials management, quality and global logistics.”

Miller added, “This move enables us to concentrate on our core competencies, which will be expanded over time, of engineering and product development, sales and marketing, and distribution. This puts us in a much better position for the future where product life cycles will shorten and customers will expect continual improvements to supply and service.”

“Raymarine is an exciting company in a fast-paced market and we are thrilled that they have selected Flextronics to provide them with a full range of vertically integrated manufacturing services,” said Mike McNamara, Chief Operating Officer of Flextronics. “We look forward to working with Raymarine and enabling them to utilize our end-to-end service offering at our Industrial Park in Hungary,” he added.

This agreement is subject to certain post-closing conditions.

About Flextronics

Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on delivering innovative design and manufacturing services to automotive, industrial, medical, and technology companies. With fiscal year 2005 revenues of USD$15.9 billion, Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on five continents. This global presence provides customers with complete design, engineering, and manufacturing resources that are vertically integrated with components to optimize their operations by lowering their costs and reducing their time to market. For more information, please visit www.flextronics.com.

About Raymarine

Raymarine, the world leader in marine electronics, develops and supplies the most comprehensive range of electronic equipment for the recreational boating and light commercial marine markets. Designed for high performance and ease-of-use our award-winning products are available through a global network of dealers and distributors. The Raymarine product lines include radar, autopilots, GPS, chartplotters, instruments, fishfinders, communications, software and systems.

More Information:

• Raymarine website