8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) December 3, 2002

SANMINA-SCI CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Delaware	000-21272	77-0228183
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(IRS Employer Identification No.)

2700 NORTH FIRST STREET
SAN JOSE, CALIFORNIA 95134

(Address of Principal Executive Offices) (Zip Code)

(408) 964-3500

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

TABLE OF CONTENTS

	ITEM 5. OTHER EVENTS
	ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.1
EXHIBIT 99.2

ITEM 5. OTHER EVENTS

     On December 3, 2002, Sanmina-SCI Corporation (“Sanmina-SCI”) announced the offering of up to $450,000,000 of senior secured notes with an expected seven year maturity in a private placement to qualified investors, subject to market conditions. Sanmina-SCI’s press release relating to the offering dated December 3, 2002, attached hereto as Exhibit 99.1, is incorporated by reference herein. In addition, the unaudited supplemental guarantors consolidating financial information, attached hereto as Exhibit 99.2, is incorporated by reference herein.

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS

     (c)  Exhibits.

Exhibit No.	Description
Exhibit 99.1	Press Release issued by Sanmina-SCI on December 3, 2002
Exhibit 99.2	Unaudited Supplemental Guarantors Consolidating Financial Information

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

SANMINA-SCI CORPORATION
By:	/s/ Rick R. Ackel
	Rick R. Ackel Executive Vice President and Chief Financial Officer

Date: December 4, 2002

EXHIBIT INDEX

Exhibit No.	Description
Exhibit 99.1	Press Release issued by Sanmina-SCI on December 3, 2002
Exhibit 99.2	Unaudited Supplemental Guarantors Consolidating Financial Information

EX-99.1 3 f86341exv99w1.txt EXHIBIT 99.1 Exhibit 99.1 CONTACTS: Rick Ackel EVP, Chief Financial Officer Paige Bombino Investor Relations (408) 964-3610 FOR IMMEDIATE RELEASE SANMINA-SCI ANNOUNCES NEW FINANCING TRANSACTION SAN JOSE, CALIFORNIA, (DECEMBER 3, 2002) -- Sanmina-SCI Corporation (Nasdaq: SANM) announced today that it intends to issue $450 million of senior secured notes with an expected seven year maturity in a private placement to qualified investors, subject to market conditions. The notes are being offered as part of a refinancing transaction pursuant to which Sanmina-SCI also intends to enter into a new $250 million senior secured credit facility secured by the same collateral securing the notes on a first priority basis. The financings are expected to close in December 2002. A portion of the $450 million of notes will be issued by Sanmina-SCI, while Sanmina-SCI Finance ULC, a finance subsidiary of Sanmina-SCI, intends to issue a portion as well. The notes will be guaranteed by all of Sanmina-SCI's U.S. subsidiaries and secured on a second-priority basis by substantially all of the assets of Sanmina-SCI and its U.S. subsidiaries located in the United States, a pledge of all the capital stock of substantially all of Sanmina-SCI's U.S. subsidiaries and a pledge of 65% of the capital stock of all of Sanmina-SCI's existing first tier foreign subsidiaries. The net proceeds of the notes offering, in combination with the net proceeds from the proposed new senior secured credit facility, will be used to repay Sanmina-SCI's debt under its existing credit facility, to repay the outstanding balance under its receivables securitization facility, to refinance or restructure its other debt, and to fund further expansion of its business and working capital. This announcement is neither an offer to sell nor a solicitation to buy any of these securities. The securities will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws. EX-99.2 4 f86341exv99w2.txt EXHIBIT 99.2 Exhibit 99.2 UNAUDITED SUPPLEMENTAL GUARANTORS CONSOLIDATING FINANCIAL INFORMATION Sanmina-SCI Corporation ("Sanmina-SCI") and Sanmina-SCI Finance ULC, an unlimited liability company incorporated in the Province of Nova Scotia, Canada and a wholly owned subsidiary of Sanmina-SCI ("Finance Co."), intend to issue an aggregate principal amount of $450.0 million of senior secured notes (the "Notes"). The Notes will be guaranteed by all of our United States subsidiaries. In addition, the Notes to be issued by Finance Co. also will be guaranteed by Sanmina-SCI. The following unaudited consolidating financial information presents: (1) A consolidating balance sheet as of September 28, 2002 and the related statements of operations and cash flows for the year ended September 28, 2002, of (a) Sanmina-SCI, the parent; (b) the guarantor subsidiaries; (c) the non-guarantor subsidiaries; and (d) Sanmina-SCI, the guarantor subsidiaries and the non-guarantor subsidiaries on a consolidated basis, and (2) Elimination entries necessary to consolidate Sanmina-SCI with the guarantor subsidiaries and the non-guarantor subsidiaries. Investments in subsidiaries are accounted for on the equity method. The principal elimination entries eliminate investments in subsidiaries, intercompany balances and intercompany sales. CONSOLIDATING BALANCE SHEET

GUARANTORS NON-GUARANTOR CONSOLIDATING CONSOLIDATED SANMINA-SCI SUBSIDIARIES SUBSIDIARIES ELIMINATIONS TOTAL ----------- ------------ -------------- ------------- ------------ (IN THOUSANDS) ASSETS: Current assets: Cash and cash equivalents....................... $ 454,998 $ 112,519 $ 497,017 $ -- $ 1,064,534 Short-term investments.......................... 99,140 -- -- -- 99,140 Accounts receivable, net........................ 8,746 539,542 846,227 -- 1,394,515 Accounts receivable -- intercompany............. -- 973,401 725,742 (1,699,143) -- Inventories..................................... 147,405 324,442 651,169 -- 1,123,016 Deferred income taxes -- current................ 205,719 141,553 (35,088) -- 312,184 Income taxes receivable......................... 39,048 (8,963) 3,506 -- 33,591 Prepaid expenses and other...................... 15,056 27,551 89,451 -- 132,058 ---------- ---------- ----------- ----------- ----------- Total current assets...................... 970,112 2,110,045 2,778,024 (1,699,143) 4,159,038 Property, plant and equipment, net................ 175,300 350,379 558,775 -- 1,084,454 Goodwill and intangibles.......................... 469,130 791,252 888,445 -- 2,148,827 Intercompany accounts............................. 1,169,726 (115,248) (102,615) (951,863) -- Investment in subsidiaries........................ 4,568,731 1,169,023 125,457 (5,863,211) -- Long term investments............................. 68,633 5,322 -- -- 73,955 Deposits and other................................ 28,669 14,924 8,190 -- 51,783 ---------- ---------- ----------- ----------- ----------- Total assets.............................. $7,450,301 $4,325,697 $ 4,256,276 $(8,514,217) $ 7,518,057 ========== ========== =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Current portion of long-term debt............... $ 27,080 $ 201,091 $ 37,728 $ -- $ 265,899 Accounts payable................................ 129,764 373,618 776,069 -- 1,279,451 Accounts Payable -- intercompany................ (221) 1,425,007 1,267,639 (2,692,425) -- Accrued liabilities............................. 47,157 161,436 157,907 -- 366,500 Accrued payroll and related benefits............ 34,753 32,051 75,335 -- 142,139 ---------- ---------- ----------- ----------- ----------- Total current liabilities................. 238,533 2,193,203 2,314,678 (2,692,425) 2,053,989 Long-term liabilities Long-term debt, net of current portion.......... 1,355,186 567,383 52,762 -- 1,975,331 Deferred income tax -- liability................ (11,803) 25,504 3,483 -- 17,184 Other........................................... 9,026 35,151 12,661 -- 56,838 ---------- ---------- ----------- ----------- ----------- Total long-term liabilities............... 1,352,409 628,038 68,906 -- 2,049,353 Stockholders' equity: Common stock.................................... 5,254 78,808 506,787 (585,595) 5,254 Treasury stock.................................. (148,019) (42,242) -- -- (190,261) Additional paid-in capital...................... 5,679,963 577,375 3,796,602 (4,378,539) 5,675,401 Accumulated other comprehensive income (loss)... 1,522 10,498 (22,325) -- (10,305) Retained earnings (deficit)..................... 320,639 880,017 (2,408,372) (857,658) (2,065,374) ---------- ---------- ----------- ----------- ----------- Total stockholders' equity................ 5,859,359 1,504,456 1,872,692 (5,821,792) 3,414,715 ---------- ---------- ----------- ----------- ----------- Total liabilities and stockholders' equity.................................. $7,450,301 $4,325,697 $ 4,256,276 $(8,514,217) $ 7,518,057 ========== ========== =========== =========== ===========

1 CONSOLIDATING STATEMENT OF OPERATIONS

GUARANTORS NON-GUARANTOR CONSOLIDATING CONSOLIDATED SANMINA-SCI SUBSIDIARIES SUBSIDIARIES ELIMINATIONS TOTAL ----------- ------------ ------------- ------------- ------------ (IN THOUSANDS) Net sales.......................................... $ 739,137 $3,990,654 $ 5,426,427 $(1,394,588) $ 8,761,630 Cost of sales...................................... 670,243 3,862,697 5,248,577 (1,394,588) 8,386,929 --------- ---------- ----------- ----------- ----------- Gross profit............................... 68,894 127,957 177,850 -- 374,701 Operating expenses: Selling, general and administrative.............. 67,625 100,830 119,170 -- 287,625 Amortization of intangibles...................... -- 5,757 -- -- 5,757 Goodwill impairment and write down of intangible assets......................................... 299,000 -- 2,371,000 -- 2,670,000 Merger and integration costs..................... 3,707 -- -- -- 3,707 Restructuring costs.............................. 38,887 102,627 30,281 -- 171,795 --------- ---------- ----------- ----------- ----------- Total operating expenses................... 409,219 209,214 2,520,451 -- 3,138,884 Operating income (loss)............................ (340,325) (81,257) (2,342,601) -- (2,764,183) Interest income.................................. 22,098 2,706 488 -- 25,292 Interest expense................................. (63,212) (27,464) (7,157) -- (97,833) Interest income (expense) -- intercompany........ 11,402 15,500 (26,902) -- -- Other Income (expense)........................... 18,187 4,018 (373) -- 21,832 --------- ---------- ----------- ----------- ----------- Other Income (expense), net........................ (11,525) (5,240) (33,944) -- (50,709) --------- ---------- ----------- ----------- ----------- Income (loss) before provision (benefit) for income taxes............................................ (351,850) (86,497) (2,376,545) -- (2,814,892) Provision (benefit) for income taxes............... (83,075) (36,333) 1,269 -- (118,139) --------- ---------- ----------- ----------- ----------- Net loss................................... $(268,775) $ (50,164) $(2,377,814) $ -- $(2,696,753) ========= ========== =========== =========== ===========

2 CONSOLIDATING STATEMENT OF CASH FLOWS

GUARANTOR NON-GUARANTOR CONSOLIDATING CONSOLIDATED SANMINA-SCI SUBSIDIARIES SUBSIDIARIES ELIMINATIONS TOTAL ----------- ------------ ------------- ------------- ------------ (IN THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss........................................... $ (268,775) $ (50,164) $(2,377,814) $ -- $(2,696,753) Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amortization.................. 45,694 104,648 99,230 -- 249,572 Restructuring costs............................ 49,738 38,791 11,056 -- 99,585 Provision (benefit) for doubtful accounts...... (2,186) 765 -- -- (1,421) Deferred income taxes.......................... 61,031 (47,637) 14,288 -- 27,682 Tax benefit from disqualified dispositions..... 2,000 -- -- -- 2,000 (Gain) loss on disposal of property and equipment.................................... 9,322 -- -- -- 9,322 (Gain) loss from investment in 50% owned companies.................................... 4,512 -- -- -- 4,512 (Gain) loss from repurchase of convertible notes........................................ (54,493) -- -- -- (54,493) Write-off of cost method investments........... 23,284 -- -- -- 23,284 Goodwill impairment and writedown of intangible assets....................................... 299,000 -- 2,371,000 -- 2,670,000 Other, net..................................... -- 4,752 -- -- 4,752 Changes in operating assets and liabilities: Accounts Receivable.......................... 191,402 39,128 (115,783) -- 114,747 Account receivable securitization............ -- (211,013) -- -- (211,013) Inventories.................................. 158,879 233,560 384,747 -- 777,186 Prepaid expenses, deposits & other........... (16,210) 54,913 (28,000) -- 10,703 Accounts payable and accrued liabilities..... (80,016) (218,317) 137,186 -- (161,147) Income tax accounts.......................... (147,361) 103,630 (1,468) -- (45,199) ----------- --------- ----------- ----- ----------- Cash provided by operating activities...... 275,821 53,056 494,442 -- 823,319 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of short-term investments............ (488,652) -- -- -- (488,652) Proceeds from maturities of short-term investments.................................. 1,202,903 -- -- -- 1,202,903 Purchases of property, plant and equipment..... (19,599) (16,815) (56,577) -- (92,991) Cash paid for businesses acquired, net......... (108,683) (57,782) (153,476) -- (319,941) Proceeds from sale of assets................... 1,684 2,289 -- -- 3,973 ----------- --------- ----------- ----- ----------- Cash provided by (used for) investing activities............................... 587,653 (72,308) (210,053) -- 305,292 ----------- --------- ----------- ----- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from notes and credit facilities, net.......................................... 1,424,000 204,300 15,182 -- 1,643,482 Issuance (repurchase) of convertible notes..... (125,466) -- -- -- (125,466) Payments of long-term debt..................... (1,021,043) (991,092) (40,832) -- (2,052,967) Proceeds from sale of common stock, net of issuance costs............................... 17,545 -- -- -- 17,545 Repurchase of common stock..................... (116,344) -- -- -- (116,344) Proceeds from (repayment of) intercompany debt......................................... (1,083,141) 887,287 195,854 -- -- ----------- --------- ----------- ----- ----------- Cash provided by (used for) financing activities............................... (904,449) 100,495 170,204 -- (633,750) Effect of exchange rate changes.................. -- -- 2,024 -- 2,024 ----------- --------- ----------- ----- ----------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS... (40,975) 81,243 456,617 -- 496,885 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD... 495,793 31,276 40,400 -- 567,469 ----------- --------- ----------- ----- ----------- CASH AND CASH EQUIVALENTS AT END OF PERIOD......... $ 454,998 $ 112,519 $ 497,017 $ -- $ 1,064,534 =========== ========= =========== ===== ===========

3 -----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

                                                                    Exhibit 99.1

CONTACTS:

Rick Ackel
EVP, Chief Financial Officer
Paige Bombino
Investor Relations

(408) 964-3610

FOR IMMEDIATE RELEASE

                 SANMINA-SCI ANNOUNCES NEW FINANCING TRANSACTION

SAN JOSE, CALIFORNIA, (DECEMBER 3, 2002) -- Sanmina-SCI Corporation (Nasdaq:
SANM) announced today that it intends to issue $450 million of senior secured
notes with an expected seven year maturity in a private placement to qualified
investors, subject to market conditions. The notes are being offered as part of
a refinancing transaction pursuant to which Sanmina-SCI also intends to enter
into a new $250 million senior secured credit facility secured by the same
collateral securing the notes on a first priority basis. The financings are
expected to close in December 2002.

A portion of the $450 million of notes will be issued by Sanmina-SCI, while
Sanmina-SCI Finance ULC, a finance subsidiary of Sanmina-SCI, intends to issue a
portion as well. The notes will be guaranteed by all of Sanmina-SCI's U.S.
subsidiaries and secured on a second-priority basis by substantially all of the
assets of Sanmina-SCI and its U.S. subsidiaries located in the United States, a
pledge of all the capital stock of substantially all of Sanmina-SCI's U.S.
subsidiaries and a pledge of 65% of the capital stock of all of Sanmina-SCI's
existing first tier foreign subsidiaries.

The net proceeds of the notes offering, in combination with the net proceeds
from the proposed new senior secured credit facility, will be used to repay
Sanmina-SCI's debt under its existing credit facility, to repay the outstanding
balance under its receivables securitization facility, to refinance or
restructure its other debt, and to fund further expansion of its business and
working capital.

This announcement is neither an offer to sell nor a solicitation to buy any of
these securities.

The securities will not be registered under the Securities Act of 1933, as
amended (the "Securities Act"), or any state securities laws, and unless so
registered, may not be offered or sold in the United States except pursuant to
an exemption from the registration requirements of the Securities Act and
applicable state laws.

EX-99.2

                                                                    Exhibit 99.2

     UNAUDITED SUPPLEMENTAL GUARANTORS CONSOLIDATING FINANCIAL INFORMATION

     Sanmina-SCI Corporation ("Sanmina-SCI") and Sanmina-SCI Finance ULC, an
unlimited liability company incorporated in the Province of Nova Scotia, Canada
and a wholly owned subsidiary of Sanmina-SCI ("Finance Co."), intend to issue an
aggregate principal amount of $450.0 million of senior secured notes (the
"Notes"). The Notes will be guaranteed by all of our United States subsidiaries.
In addition, the Notes to be issued by Finance Co. also will be guaranteed by
Sanmina-SCI.

     The following unaudited consolidating financial information presents:

          (1) A consolidating balance sheet as of September 28, 2002 and the
     related statements of operations and cash flows for the year ended
     September 28, 2002, of (a) Sanmina-SCI, the parent; (b) the guarantor
     subsidiaries; (c) the non-guarantor subsidiaries; and (d) Sanmina-SCI, the
     guarantor subsidiaries and the non-guarantor subsidiaries on a consolidated
     basis, and

          (2) Elimination entries necessary to consolidate Sanmina-SCI with the
     guarantor subsidiaries and the non-guarantor subsidiaries.

     Investments in subsidiaries are accounted for on the equity method. The
principal elimination entries eliminate investments in subsidiaries,
intercompany balances and intercompany sales.

                          CONSOLIDATING BALANCE SHEET



                                                                   GUARANTORS    NON-GUARANTOR    CONSOLIDATING   CONSOLIDATED
                                                    SANMINA-SCI   SUBSIDIARIES    SUBSIDIARIES    ELIMINATIONS       TOTAL
                                                    -----------   ------------   --------------   -------------   ------------
                                                                                  (IN THOUSANDS)
                                                                                                   
ASSETS:
Current assets:
  Cash and cash equivalents.......................  $  454,998     $  112,519     $   497,017      $        --    $ 1,064,534
  Short-term investments..........................      99,140             --              --               --         99,140
  Accounts receivable, net........................       8,746        539,542         846,227               --      1,394,515
  Accounts receivable -- intercompany.............          --        973,401         725,742       (1,699,143)            --
  Inventories.....................................     147,405        324,442         651,169               --      1,123,016
  Deferred income taxes -- current................     205,719        141,553         (35,088)              --        312,184
  Income taxes receivable.........................      39,048         (8,963)          3,506               --         33,591
  Prepaid expenses and other......................      15,056         27,551          89,451               --        132,058
                                                    ----------     ----------     -----------      -----------    -----------
        Total current assets......................     970,112      2,110,045       2,778,024       (1,699,143)     4,159,038
Property, plant and equipment, net................     175,300        350,379         558,775               --      1,084,454
Goodwill and intangibles..........................     469,130        791,252         888,445               --      2,148,827
Intercompany accounts.............................   1,169,726       (115,248)       (102,615)        (951,863)            --
Investment in subsidiaries........................   4,568,731      1,169,023         125,457       (5,863,211)            --
Long term investments.............................      68,633          5,322              --               --         73,955
Deposits and other................................      28,669         14,924           8,190               --         51,783
                                                    ----------     ----------     -----------      -----------    -----------
        Total assets..............................  $7,450,301     $4,325,697     $ 4,256,276      $(8,514,217)   $ 7,518,057
                                                    ==========     ==========     ===========      ===========    ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
  Current portion of long-term debt...............  $   27,080     $  201,091     $    37,728      $        --    $   265,899
  Accounts payable................................     129,764        373,618         776,069               --      1,279,451
  Accounts Payable -- intercompany................        (221)     1,425,007       1,267,639       (2,692,425)            --
  Accrued liabilities.............................      47,157        161,436         157,907               --        366,500
  Accrued payroll and related benefits............      34,753         32,051          75,335               --        142,139
                                                    ----------     ----------     -----------      -----------    -----------
        Total current liabilities.................     238,533      2,193,203       2,314,678       (2,692,425)     2,053,989
Long-term liabilities
  Long-term debt, net of current portion..........   1,355,186        567,383          52,762               --      1,975,331
  Deferred income tax -- liability................     (11,803)        25,504           3,483               --         17,184
  Other...........................................       9,026         35,151          12,661               --         56,838
                                                    ----------     ----------     -----------      -----------    -----------
        Total long-term liabilities...............   1,352,409        628,038          68,906               --      2,049,353
Stockholders' equity:
  Common stock....................................       5,254         78,808         506,787         (585,595)         5,254
  Treasury stock..................................    (148,019)       (42,242)             --               --       (190,261)
  Additional paid-in capital......................   5,679,963        577,375       3,796,602       (4,378,539)     5,675,401
  Accumulated other comprehensive income (loss)...       1,522         10,498         (22,325)              --        (10,305)
  Retained earnings (deficit).....................     320,639        880,017      (2,408,372)        (857,658)    (2,065,374)
                                                    ----------     ----------     -----------      -----------    -----------
        Total stockholders' equity................   5,859,359      1,504,456       1,872,692       (5,821,792)     3,414,715
                                                    ----------     ----------     -----------      -----------    -----------
        Total liabilities and stockholders'
          equity..................................  $7,450,301     $4,325,697     $ 4,256,276      $(8,514,217)   $ 7,518,057
                                                    ==========     ==========     ===========      ===========    ===========


                                       1


                     CONSOLIDATING STATEMENT OF OPERATIONS



                                                                    GUARANTORS    NON-GUARANTOR   CONSOLIDATING   CONSOLIDATED
                                                     SANMINA-SCI   SUBSIDIARIES   SUBSIDIARIES    ELIMINATIONS       TOTAL
                                                     -----------   ------------   -------------   -------------   ------------
                                                                                  (IN THOUSANDS)
                                                                                                   
Net sales..........................................   $ 739,137     $3,990,654     $ 5,426,427     $(1,394,588)   $ 8,761,630
Cost of sales......................................     670,243      3,862,697       5,248,577      (1,394,588)     8,386,929
                                                      ---------     ----------     -----------     -----------    -----------
        Gross profit...............................      68,894        127,957         177,850              --        374,701
Operating expenses:
  Selling, general and administrative..............      67,625        100,830         119,170              --        287,625
  Amortization of intangibles......................          --          5,757              --              --          5,757
  Goodwill impairment and write down of intangible
    assets.........................................     299,000             --       2,371,000              --      2,670,000
  Merger and integration costs.....................       3,707             --              --              --          3,707
  Restructuring costs..............................      38,887        102,627          30,281              --        171,795
                                                      ---------     ----------     -----------     -----------    -----------
        Total operating expenses...................     409,219        209,214       2,520,451              --      3,138,884
Operating income (loss)............................    (340,325)       (81,257)     (2,342,601)             --     (2,764,183)
  Interest income..................................      22,098          2,706             488              --         25,292
  Interest expense.................................     (63,212)       (27,464)         (7,157)             --        (97,833)
  Interest income (expense) -- intercompany........      11,402         15,500         (26,902)             --             --
  Other Income (expense)...........................      18,187          4,018            (373)             --         21,832
                                                      ---------     ----------     -----------     -----------    -----------
Other Income (expense), net........................     (11,525)        (5,240)        (33,944)             --        (50,709)
                                                      ---------     ----------     -----------     -----------    -----------
Income (loss) before provision (benefit) for income
  taxes............................................    (351,850)       (86,497)     (2,376,545)             --     (2,814,892)
Provision (benefit) for income taxes...............     (83,075)       (36,333)          1,269              --       (118,139)
                                                      ---------     ----------     -----------     -----------    -----------
        Net loss...................................   $(268,775)    $  (50,164)    $(2,377,814)    $        --    $(2,696,753)
                                                      =========     ==========     ===========     ===========    ===========


                                       2





                     CONSOLIDATING STATEMENT OF CASH FLOWS



                                                                    GUARANTOR     NON-GUARANTOR   CONSOLIDATING   CONSOLIDATED
                                                     SANMINA-SCI   SUBSIDIARIES   SUBSIDIARIES    ELIMINATIONS       TOTAL
                                                     -----------   ------------   -------------   -------------   ------------
                                                                                  (IN THOUSANDS)
                                                                                                   
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss...........................................  $ (268,775)    $ (50,164)     $(2,377,814)       $  --       $(2,696,753)
Adjustments to reconcile net income (loss) to cash
  provided by operating activities:
    Depreciation and amortization..................      45,694       104,648           99,230           --           249,572
    Restructuring costs............................      49,738        38,791           11,056           --            99,585
    Provision (benefit) for doubtful accounts......      (2,186)          765               --           --            (1,421)
    Deferred income taxes..........................      61,031       (47,637)          14,288           --            27,682
    Tax benefit from disqualified dispositions.....       2,000            --               --           --             2,000
    (Gain) loss on disposal of property and
      equipment....................................       9,322            --               --           --             9,322
    (Gain) loss from investment in 50% owned
      companies....................................       4,512            --               --           --             4,512
    (Gain) loss from repurchase of convertible
      notes........................................     (54,493)           --               --           --           (54,493)
    Write-off of cost method investments...........      23,284            --               --           --            23,284
    Goodwill impairment and writedown of intangible
      assets.......................................     299,000            --        2,371,000           --         2,670,000
    Other, net.....................................          --         4,752               --           --             4,752
    Changes in operating assets and liabilities:
      Accounts Receivable..........................     191,402        39,128         (115,783)          --           114,747
      Account receivable securitization............          --      (211,013)              --           --          (211,013)
      Inventories..................................     158,879       233,560          384,747           --           777,186
      Prepaid expenses, deposits & other...........     (16,210)       54,913          (28,000)          --            10,703
      Accounts payable and accrued liabilities.....     (80,016)     (218,317)         137,186           --          (161,147)
      Income tax accounts..........................    (147,361)      103,630           (1,468)          --           (45,199)
                                                     -----------    ---------      -----------        -----       -----------
        Cash provided by operating activities......     275,821        53,056          494,442           --           823,319
CASH FLOWS FROM INVESTING ACTIVITIES
    Purchases of short-term investments............    (488,652)           --               --           --          (488,652)
    Proceeds from maturities of short-term
      investments..................................   1,202,903            --               --           --         1,202,903
    Purchases of property, plant and equipment.....     (19,599)      (16,815)         (56,577)          --           (92,991)
    Cash paid for businesses acquired, net.........    (108,683)      (57,782)        (153,476)          --          (319,941)
    Proceeds from sale of assets...................       1,684         2,289               --           --             3,973
                                                     -----------    ---------      -----------        -----       -----------
        Cash provided by (used for) investing
          activities...............................     587,653       (72,308)        (210,053)          --           305,292
                                                     -----------    ---------      -----------        -----       -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from notes and credit facilities,
      net..........................................   1,424,000       204,300           15,182           --         1,643,482
    Issuance (repurchase) of convertible notes.....    (125,466)           --               --           --          (125,466)
    Payments of long-term debt.....................  (1,021,043)     (991,092)         (40,832)          --        (2,052,967)
    Proceeds from sale of common stock, net of
      issuance costs...............................      17,545            --               --           --            17,545
    Repurchase of common stock.....................    (116,344)           --               --           --          (116,344)
    Proceeds from (repayment of) intercompany
      debt.........................................  (1,083,141)      887,287          195,854           --                --
                                                     -----------    ---------      -----------        -----       -----------
        Cash provided by (used for) financing
          activities...............................    (904,449)      100,495          170,204           --          (633,750)
  Effect of exchange rate changes..................          --            --            2,024           --             2,024
                                                     -----------    ---------      -----------        -----       -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS...     (40,975)       81,243          456,617           --           496,885
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD...     495,793        31,276           40,400           --           567,469
                                                     -----------    ---------      -----------        -----       -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD.........  $  454,998     $ 112,519      $   497,017        $  --       $ 1,064,534
                                                     ===========    =========      ===========        =====       ===========


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