Exhibit 99.1

Solectron Announces First-Quarter Results

For Immediate Release: Dec. 21, 2004

MILPITAS, Calif. — Solectron Corporation (NYSE:SLR), a leading provider of electronics manufacturing and integrated supply chain services, today reported sales of $2.7 billion in the first quarter of fiscal 2005. Sales in the first quarter of fiscal 2004 were $2.7 billion and sales in the fourth quarter of fiscal 2004 were $3.0 billion.

The company reported GAAP income from continuing operations in the first quarter of $47 million, or 5 cents per share, compared with a GAAP loss from continuing operations of $52 million, or 6 cents per share, in the first quarter of last year. Excluding $2 million of charges related to adjustments of previously announced restructuring, Solectron had non-GAAP net income from continuing operations of $49 million, or 5 cents per share.

The company reported lower revenues from the previous quarter primarily due to greater than expected weakness in the consumer market for set-top boxes and 3-G wireless handsets, as well as in the semiconductor capital equipment sector of the industrial market. In addition, the company saw lower demand in the networking market.

“Despite lower sales, I am very pleased that earnings per share improved to five cents, which was the midpoint of our guidance,” said Mike Cannon, president and chief executive officer. “Our focus on profitability delivered a 40 basis-point improvement in gross margins from the prior quarter and a reduction in operating expenses to $96 million. In addition, we generated strong cash flow from operations of approximately $190 million. Looking forward, we expect revenue growth in the second half of the year, driven by the expected ramp of recent wins and improved demand.”

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Quarterly Highlights

The company made further improvements in working capital during the quarter with a reduction in accounts receivable of $120 million and a reduction in inventory of $52 million. Inventory turns were 7.1 and the company’s cash conversion cycle was 51 days. Capital expenditures were $32 million, depreciation and amortization were $49 million, and return on invested capital improved to 10.5 percent.

Fiscal Second-Quarter 2005 Guidance

Fiscal second-quarter guidance is for sales of $2.65 billion to $2.8 billion and for non-GAAP EPS from continuing operations to range from 4 cents to 6 cents, on a fully diluted basis.

Non-GAAP Information

In addition to disclosing results determined in accordance with generally accepted accounting principles (GAAP), Solectron also discloses non-GAAP results of operations that exclude certain items. By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze the company’s performance, core results and underlying trends. Management utilizes a measure of net income and earnings per share on a non-GAAP basis that excludes certain charges to better assess operating performance. Each excluded item is considered to be of a non-operational nature in the applicable period. Earnings guidance is provided only on a non-GAAP basis due to the inherent difficulty in forecasting such charges. Consistent with industry practice, management has historically applied these non-GAAP measures when discussing earnings or earnings guidance and intends to continue doing so.

Non-GAAP information is not determined using GAAP; therefore, the information is not necessarily comparable to other companies and should not be used to compare the company’s performance over different periods. Non-GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures of our profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made. See the tables to the press release for a reconciliation of non-GAAP amounts to amounts reported under GAAP.

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Webcast To Be Held Today

At 4:30 p.m. EST today, Solectron will hold a conference call to discuss this earnings report. A live Internet broadcast of the call can be joined by going to www.solectron.com. Supplemental financial information related to the conference call will also be available at this Web site location. Following the live broadcast, the archived Webcast will be available at http://phx.corporate-ir.net/phoenix.zhtml?c=74829&p=irol-earningsWebcasts. In addition, audio replays of the call will be available two hours following the call through Jan. 4, 2005. Call +1(800) 642-1687 from within the United States or +1(706) 645-9291 from outside the United States and specify pass code: 2183899.

Safe Harbor

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements relate to our financial outlook for the second quarter of fiscal 2005 and beyond and our expectations for continued progress in improving our profitability and operating metrics. These forward-looking statements involve a number of risks and uncertainties and are based on current expectations, forecasts and assumptions.

Actual outcomes and results could differ materially. These risks and uncertainties include the present and future strength of the worldwide economy overall and in the telecommunications and other electronics technology sectors in particular; our ability to continue to win and satisfy customers; our ability to successfully implement our initiatives related to improvement in our operating metrics; the accuracy of our projections of cash flows and capital requirements; the ability to effectively implement restructuring and cost reduction plans and the timing of such implementations; the risk of price fluctuation; reliance on major customers; fluctuations in operating results; changes in technology; competition; variations in demand forecasts and orders that may give rise to operational challenges such as excess plant, equipment and materials; risks associated with international sales and operations; our ability to adequately satisfy new regulations relating to internal controls over financial reporting; interest-rate risk; environmental regulations; market risk; the ability to retain key personnel; the impact of our outstanding litigation and of other contingent liabilities; and intellectual property rights enforcement.

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In addition, the independent audit of our financial statements is not yet complete, and the final audited results could differ from the preliminary, unaudited results contained in this release.

For a further list and description of risks and uncertainties, see the reports filed by Solectron with the Securities and Exchange Commission, specifically Forms 8-K, 10-K, 10-Q and S-3. Solectron disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Supplemental information, condensed consolidated balance sheets and statements of operations follow. All monetary amounts are stated in U.S. dollars.

Income from Continuing Operations Reconciliation	Quarter Ended
(in millions)	Nov. 30, 2004
Income from continuing operations on a GAAP basis	$	46.9
Restructuring charges	$	1.6
Income from continuing operations on a non-GAAP basis	$	48.5

Earnings Per Share Reconciliation	Quarter Ended
(in millions, except per-share data)	Nov. 30, 2004
Diluted net income per share from continuing operations on a GAAP basis	$	0.05
Restructuring charges	$	—
Diluted net income per share from continuing operations on a non-GAAP basis	$	0.05
Shares used to compute diluted net income per share — GAAP and non-GAAP		967.4

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About Solectron

Solectron (www.solectron.com) provides a full range of worldwide manufacturing and integrated supply chain services to the world’s premier high-tech electronics companies. Solectron’s offerings include new-product design and introduction services, materials management, product manufacturing, and product warranty and end-of-life support. The company is based in Milpitas, Calif., and had sales from continuing operations of $11.64 billion in fiscal 2004.

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Analyst Contacts:
Perry Hayes, Solectron Corporation, +1(408) 956-7543 (U.S.), perryhayes@solectron.com
Tonya Chin, Solectron Corporation, +1(408) 956-6537 (U.S.), tonyachin@solectron.com

Media Contact:
Dmitry Lipkin, Solectron Corporation, +1(408) 956-6792 (U.S.), dmitrylipkin@solectron.com

SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in millions)
Unaudited

	November 30			August 31
	2004			2004
ASSETS
Current assets:
Cash, cash equivalents and short-term investments	$	1,680.2		$	1,430.0
Accounts receivable, net		1,429.5			1,549.9
Inventories		1,405.3			1,457.2
Prepaid expenses and other current assets		184.9			192.9
Current assets of discontinued operations		—			36.4
Total current assets		4,699.9			4,666.4
Net property and equipment		711.8			726.6
Goodwill		134.6			134.6
Other assets		259.0			277.5
Long-term assets of discontinued operations		—			11.9
Total assets	$	5,805.3		$	5,817.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	21.2		$	25.1
Accounts payable		1,343.1			1,417.3
Accrued employee compensation		173.3			175.2
Accrued expenses		256.8			270.2
Other current liabilities		209.1			224.9
Current liabilities of discontinued operations		—			46.4
Total current liabilities		2,003.5			2,159.1
Long-term debt		1,215.4			1,221.4
Other long-term liabilities		77.0			55.9
Long-term liabilities of discontinued operations		—			1.8
Total liabilities		3,295.9			3,438.2
Stockholders’ equity:
Common stock		1.0			1.0
Additional paid-in capital		7,842.4			7,775.9
Accumulated deficit		(5,153.6	)		(5,209.5	)
Accumulated other comprehensive losses		(180.4	)		(188.6	)
Total stockholders’ equity		2,509.4			2,378.8
Total liabilities and stockholders’ equity	$	5,805.3		$	5,817.0

SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per-share data)
Unaudited

	Three Months Ended			Three Months Ended
	November 30, 2004			November 30, 2003
Net sales	$	2,690.6		$	2,696.8
Cost of sales		2,534.4			2,569.3
Gross profit		156.2			127.5
Operating expenses:
Selling, general and administrative		95.5			114.7
Restructuring and impairment costs		1.6			27.0
Operating income (loss)		59.1			(14.2	)
Interest income		5.8			2.4
Interest expense		(16.3	)		(43.9	)
Other income — net		3.0			6.0
Income (loss) from continuing operations before income taxes		51.6			(49.7	)
Income tax expense		4.7			2.5
Income (loss) from continuing operations	$	46.9		$	(52.2	)
Discontinued operations:
Income (loss) from discontinued operations		10.7			(67.3	)
Income tax expense		1.7			0.3
Income (loss) on discontinued operations		9.0			(67.6	)
Net income (loss)	$	55.9		$	(119.8	)
Basic net income (loss) per share:
Continuing operations	$	0.05		$	(0.06	)
Discontinued operations		0.01			(0.08	)
Basic net income (loss) per share	$	0.06		$	(0.14	)
Diluted net income (loss) per share:
Continuing operations	$	0.05		$	(0.06	)
Discontinued operations		0.01			(0.08	)
Diluted net income (loss) per share	$	0.06		$	(0.14	)
Shares used to compute basic net income (loss) per share		963.2			833.6
Shares used to compute diluted net income (loss) per share		967.4			833.6