SANM Sanmina Corporation

SAN JOSE, Calif., Dec. 15 /PRNewswire-FirstCall/ -- Sanmina-SCI Corporation (NASDAQ:SANM) (the "Company") and its outside independent registered accounting firm, are currently in the process of completing their assessment of the effectiveness of the Company's internal control over financial reporting as required under Section 404 of the Sarbanes-Oxley Act. Certain disclosures relating to this assessment are required in connection with filing the Company's annual report on Form 10-K. Management and its independent registered accounting firm must complete their assessment of the internal control over financial reporting and the independent registered public accounting firm must then also audit management's assessment of the effectiveness of the Company's internal control over financial reporting as of October 1, 2005. This process is not expected to be completed in time for the company to file its report on Form 10-K for the fiscal year ended October 1, 2005 (the "2005 Form 10-K") by the due date December 15, 2005. The Company intends to file the 2005 Form 10-K as soon as practicable, and in any event within the 15-day extension period afforded by SEC Rule 12b-25 under the Securities Act, which would expire on December 30, 2005. The Company anticipates that the consolidated financial statements for fiscal 2005 that will be reported in the 2005 Form 10-K will not differ from the Company's consolidated financial statements that were reported in the Company's press release dated November 3, 2005, except for one reclassification. The reclassification consists of recording a portion of the valuation allowance relating to our U.S. deferred tax asset through additional paid-in capital rather than income tax expense. As a result, $9.7 million was reclassified from additional paid-in capital to the income tax expense. The net effect of this item was to increase the Company's net loss for the year by $9.7 million from the amount previously reported. Except for the one reclassification, there were no other changes made to the amounts included in the consolidated financial statements that were reported in the Company's press release dated November 3, 2005. This reclassification does not affect in any respect the Company's reported non-GAAP results of operations presented in the November 3, 2005 press release. About Sanmina-SCI Sanmina-SCI Corporation is a leading electronics contract manufacturer serving the fastest-growing segments of the global electronics manufacturing services (EMS) market. Recognized as a technology leader, Sanmina-SCI provides end-to-end manufacturing solutions, delivering superior quality and support to large OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, computer technology and multimedia sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. Information about Sanmina-SCI is available at http://www.sanmina-sci.com/. Sanmina-SCI Safe Harbor Statement The foregoing, including the discussion regarding the Company's future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the Company, changes in customer requirements and in the volume of sales to principal customers, the ability of Sanmina-SCI to effectively assimilate acquired businesses and achieve the anticipated benefits of its acquisitions, and competition and technological change. The Company's actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors, including factors set forth in the Company's fiscal year 2004 Annual Report on Form 10-K filed on December 29, 2004 and the other reports, including quarterly reports on Form 10-Q and current reports on Form 8-K, that the Company files with the Securities Exchange Commission. DATASOURCE: Sanmina-SCI Corporation CONTACT: investors, Paige Bombino of Sanmina-SCI Corporation, +1-408-964-3610 Web site: http://www.sanmina-sci.com/

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