Flextronics, Nortel Begin Optics Tranfer

TORONTO, Nov. 2 -- Nortel Networks announced it has completed the transfer of certain optical design operations and related assets in Ottawa, Ontario and Monkstown, Northern Ireland, to Flextronics as part of a larger transaction announced by the two companies in June.

Sue Spradley, president of Global Operations at Nortel, said, "With Flextronics now focusing on product cost reduction and fast-tracking the development of new features related to our well-established optical products, Nortel Networks will be better positioned to concentrate on next-generation optical architectures, products and solutions -- areas where we believe we can gain the most competitive advantage."

The balance of the agreement between both companies, in which Nortel Networks will sell certain manufacturing operations and related assets to Flextronics, is expected to close in the first half of 2005.

Flextronics, a Singapore-based electronics manufacturing services provider, announced last week it has acquired the camera module business of Agilent Technologies for an undisclosed amount; that deal is expected to close by the end of this year. The contract manufacturer said it recognizes the strategic importance of offering low-cost camera modules in the mobile phone market. Agilent will continue to develop components for the imaging market but has stopped developing some VGA and CIF CMOS image sensors.

For more information, visit: www.flextronics.com