Record first quarter net sales increase 62% to $8.4 billion

          Record first quarter adjusted EPS increases 23% to $0.27

            Company announces authorization for share repurchase



    SINGAPORE, July 24 /EMWNews/ -- Flextronics (Nasdaq: FLEX)

today announced results for its first quarter ended June 27, 2008 as

follows:










    (US$ in millions, except EPS)

                                              Three Month Periods Ended

                                              June 27,          June 29,

                                                2008              2007



    Net sales                                  $8,350            $5,157

    GAAP operating income                        $205              $133

    Adjusted operating income (1)                $280              $153

    GAAP net income                              $130              $107

    Adjusted net income (1)                      $227              $134

    GAAP EPS                                    $0.16             $0.17

    Adjusted EPS (1)                            $0.27             $0.22



    (1) A reconciliation of non-GAAP financial measures to GAAP financial

        measures is presented in Schedule II attached to this press release.





    First Quarter Results



    Record net sales for the first quarter ended June 27, 2008 increased

62% to $8.4 billion, which represents an increase of $3.2 billion over the

year ago quarter. Record adjusted operating profit for the first quarter

ended June 27, 2008 increased 83% over the year ago quarter to $280

million, while adjusted operating margin improved 40 basis points to 3.4%.

Record adjusted net income for the first quarter ended June 27, 2008

increased 69% over the year ago quarter to $227 million, while adjusted EPS

increased 23% to a first quarter record of $0.27.



    "I am very pleased with our execution this past quarter, especially in

light of the challenging economic environment. I believe that the size and

breadth of our service offerings as well as the geographic and product

diversification of our company continues to provide us a unique competitive

advantage, particularly in this current environment. I am also pleased to

announce that we have recently received authorization from our Board of

Directors to repurchase up to ten percent of our outstanding ordinary

shares," said Mike McNamara, chief executive officer of Flextronics.



    Guidance



    For the second quarter ending September 26, 2008, revenue is expected

to be in the range of $8.5 billion to $9.0 billion and adjusted EPS is

expected to be in the range of $0.28 - $0.31 per share.



    GAAP earnings per share are expected to be lower than the guidance

provided herein by approximately $0.05 per diluted share for quarterly

intangible amortization and stock-based compensation expense.



    Flextronics Announces Share Repurchase Authorization



    Today the Company announced that its Board of Directors has authorized

the repurchase of up to ten percent of the Company's outstanding ordinary

shares.



    Share repurchases will be made pursuant to the Share Purchase Mandate

approved by the shareholders at the Company's Annual General Meeting. Until

the Company's 2008 Annual General Meeting, scheduled to take place in

September 2008, the Company is authorized to repurchase up to approximately

61 million shares. Following and contingent upon shareholder approval at

the 2008 Annual General Meeting in September, the amount authorized for

repurchase will be increased to up to approximately 83 million shares.

Share repurchases, if any, will be made in the open market at such times

and in such amounts as management deems appropriate. The Company intends to

effect any share purchases in compliance with SEC Rule 10b-18. The timing

and actual number of shares repurchased will depend on a variety of factors

including price, market conditions and applicable legal requirements. The

share repurchase program does not obligate the Company to repurchase any

specific number of shares and may be suspended or terminated at any time

without prior notice.



    Conference Calls and Web Casts



    A conference call hosted by Flextronics's management will be held today

at 2:30 p.m. PDT to discuss the Company's financial results for the first

quarter ended June 27, 2008. This call will be broadcast via the Internet

and may be accessed by logging on to the Company's website at

http://www.flextronics.com. Additional information in the form of slide

presentations may also be found on the Company's site. Replays of the

broadcasts will remain available on the Company's website afterwards.



    Minimum requirements to listen to the broadcast are Microsoft Windows

Media Player software (free download at

http://www.microsoft.com/windows/windowsmedia/download/default.asp) and at

least a 28.8 Kbps bandwidth connection to the Internet.

    About Flextronics



    Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics

is a leading Electronics Manufacturing Services (EMS) provider focused on

delivering complete design, engineering and manufacturing services to

automotive, computing, consumer digital, industrial, infrastructure,

medical and mobile OEMs. With the acquisition of Solectron, pro forma

fiscal year 2008 revenues were more than US$33.6 billion. Flextronics helps

customers design, build, ship, and service electronics products through a

network of facilities in 30 countries on four continents. This global

presence provides design and engineering solutions that are combined with

core electronics manufacturing and logistics services, and vertically

integrated with components technologies, to optimize customer operations by

lowering costs and reducing time to market. For more information, please

visit http://www.flextronics.com



    This press release contains forward-looking statements within the

meaning of U.S. securities laws, including statements related to future

revenue and earnings growth. These forward-looking statements involve risks

and uncertainties that could cause the actual results to differ materially

from those anticipated by these forward-looking statements. These risks

include that revenue and earnings growth may not occur as expected; our

dependence on industries that continually produce technologically advanced

products with short life cycles; that we may not fully realize the expected

synergies, revenues and earnings growth and cost savings from the Solectron

acquisition, and that we may incur significant costs and charges associated

with the acquisition; our ability to respond to changes in economic trends,

to fluctuations in demand for customers' products and to the short-term

nature of customers' commitments; competition in our industry, particularly

from ODM suppliers in Asia; our dependence on a small number of customers

for the majority of our sales and our reliance on strategic relationships

with major customers; the challenges of effectively managing our

operations, including our ability to manage manufacturing processes,

control costs and manage changes in our operations; the challenges of

integrating acquired companies and assets; not obtaining anticipated new

customer programs, or that if we do obtain them, that they may not

contribute to our revenue or profitability as expected or at all; our

ability to utilize available and recently expanded manufacturing capacity;

the risk of future restructuring charges that could be material to our

financial condition and results of operations; our ability to design and

quickly introduce world-class components products that offer significant

price and/or performance advantages over competitive products; the impact

on our margins and profitability resulting from substantial investments and

start-up and integration costs in our components, design and ODM

businesses; production difficulties, especially with new products; changes

in government regulations and tax laws; not realizing expected returns from

our retained interests in divested businesses; our exposure to potential

litigation relating to intellectual property rights, product warranty and

product liability; potential impairment of our intangible assets; our

dependence on the continued trend of outsourcing by OEMs; the risks to our

particular electronics and technology sector of economic instability and a

slowdown in consumer spending; the effects of customer bankruptcies; supply

shortages of required electronic components; the challenges of

international operations, including fluctuations in exchange rates beyond

hedged boundaries leading to unexpected charges; our dependence on our key

personnel; and our ability to comply with environmental laws. Additional

information concerning these and other risks is described under "Risk

Factors" and "Management's Discussion and Analysis of Financial Condition

and Results of Operations" in our reports on Form 10-K, 10-Q and 8-K that

we file with the U.S. Securities and Exchange Commission. The

forward-looking statements in this press release are based on current

expectations and Flextronics assumes no obligation to update these

forward-looking statements.










                                                                   SCHEDULE I



                 FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES

            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                    (In thousands, except per share amounts)



                                                Three Month Periods Ended

                                              June 27, 2008     June 29, 2007

    GAAP:

        Net sales                               $8,350,246        $5,157,026

        Cost of sales                            7,867,162         4,866,454

        Restructuring charges                       26,317             9,753



              Gross profit                         456,767           280,819



        Selling, general and administrative

         expenses                                  248,626           146,588

        Restructuring charges                        2,898               921



              Operating income                     205,243           133,310



        Intangible amortization                     25,246            16,675

        Interest and other expense, net             39,624             6,259



              Income before income taxes           140,373           110,376



        Provision for income taxes                  10,061             3,429



              Net income                          $130,312          $106,947



    EPS:

        GAAP                                         $0.16             $0.17

        Non-GAAP                                     $0.27             $0.22



        Diluted shares used in computing

         per share amounts                         840,444           615,541





    See Schedule II for the reconciliation of GAAP to non-GAAP financial

measures.







                                                                   SCHEDULE II



                 FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES

            RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)

                     (In thousands, except per share amounts)

                                   (unaudited)



                                                Three Month Periods Ended

                                            June 27,  % of    June 29,   % of

                                              2008    Sales     2007     Sales



    GAAP gross profit                        $456,767  5.5%    $280,819   5.4%

         Stock-based compensation expense       2,299               999

         Restructuring and other charges  (2) 4 7,821             9,753

    Non-GAAP gross profit                    $506,887  6.1%    $291,571   5.7%



    GAAP SG&A Expenses                       $248,626  3.0%    $146,588   2.8%

         Stock-based compensation  expense     13,061             7,726

         Restructuring and other charges  (2)   8,700               -

    Non-GAAP SG&A Expenses                   $226,865  2.7%    $138,862   2.7%



    GAAP operating income                    $205,243  2.5%    $133,310   2.6%

         Stock-based compensation expense      15,360             8,725

         Restructuring and other charges  (2)  59,419            10,674

    Non-GAAP operating income                $280,022  3.4%    $152,709   3.0%



    GAAP net income                          $130,312  1.6%    $106,947   2.1%

         Stock-based compensation expense      15,360             8,725

         Restructuring and other charges  (2)  63,097            10,674

         Intangible amortization               25,246            18,205

         Other                            (3)     -              (9,309)

         Adjustment for taxes                  (7,024)             (961)

    Non-GAAP net income                      $226,991  2.7%    $134,281   2.6%



    GAAP provision for income taxes           $10,061  0.1%      $3,429   0.1%

         Restructuring and other charges        4,676

         Intangible amortization                2,348               961

    Non-GAAP provision for income taxes       $17,085  0.2%      $4,390   0.1%



    EPS:

         GAAP                                   $0.16             $0.17

         Non-GAAP                               $0.27             $0.22





    See the accompanying notes on Schedule IV attached to this press release.







                                                                 SCHEDULE III



                 FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES

              UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS

                                 (In thousands)



                                              June 27, 2008    March 31, 2008

    ASSETS



    Current Assets:

        Cash and cash equivalents               $1,761,728        $1,719,948

        Accounts receivable, net                 3,925,858         3,550,942

        Inventories                              4,456,094         4,118,550

        Deferred income taxes                        9,984               573

        Other current assets                       936,809           922,924

                                                11,090,473        10,312,937



    Property and equipment, net                  2,536,100         2,465,656

    Deferred income taxes                           35,964            32,598

    Goodwill and other intangibles, net          6,048,616         5,876,741

    Other assets                                   812,938           836,983

                                               $20,524,091       $19,524,915





    LIABILITIES AND SHAREHOLDERS' EQUITY



    Current Liabilities:

        Bank borrowings, current portion

         of long-term debt and capital lease

         obligations                               $18,959           $28,591

        Accounts payable                         5,885,532         5,311,337

        Other current liabilities                2,035,115         2,061,087

        Total current liabilities                7,939,606         7,401,015



    Long-term debt, net of current portion:

        Acquisition Term Loan due 2012

         and 2014                                1,709,197         1,709,256

        6 1/2 % Senior Subordinated Notes

         due 2013                                  399,622           399,622

        6 1/4 % Senior Subordinated Notes

         due 2014                                  402,090           402,090

        1 % Convertible Subordinated

         Notes due 2010                            500,000           500,000

        Zero Coupon Convertible Junior

         Subordinated Notes due 2009               195,000           195,000

        Other long-term debt and capital

         lease obligations                         514,091           182,369

    Other liabilities                              545,279           571,119



    Total shareholders' equity                   8,319,206         8,164,444

                                               $20,524,091       $19,524,915







                                                                  SCHEDULE IV



               FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES

        NOTES TO RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

    (1) To supplement Flextronics' unaudited selected financial data

presented on a basis consistent with Generally Accepted Accounting

Principles ("GAAP"), the Company discloses certain non-GAAP financial

measures that exclude certain charges, including non-GAAP gross profit,

non-GAAP selling, general and administrative expenses, non-GAAP operating

income, non-GAAP net income and non-GAAP net income per diluted share.

These supplemental measures exclude, among other things, stock-based

compensation expense, restructuring charges, intangible amortization, gains

or losses on divestitures and certain other items. These non-GAAP measures

are not in accordance with or an alternative for GAAP, and may be different

from non-GAAP measures used by other companies. We believe that these

non-GAAP measures have limitations in that they do not reflect all of the

amounts associated with Flextronics's results of operations as determined

in accordance with GAAP and that these measures should only be used to

evaluate Flextronics's results of operations in conjunction with the

corresponding GAAP measures. The presentation of this additional

information is not meant to be considered in isolation or as a substitute

for the most directly comparable GAAP measures. We compensate for the

limitations of non-GAAP financial measures by relying upon GAAP results to

gain a complete picture of Company performance.



    In calculating non-GAAP financial measures, we exclude certain items to

facilitate a review of the comparability of the Company's operating

performance on a period-to-period basis because such items are not, in our

view, related to the Company's ongoing operational performance. We use

non-GAAP measures to evaluate the operating performance of our business,

for comparison with forecasts and strategic plans, for calculating return

on investment, and for benchmarking performance externally against

competitors. In addition, management's incentive compensation is determined

using certain non-GAAP measures. Also, when evaluating potential

acquisitions, we exclude certain of the items described below from

consideration of the target's performance and valuation. Since we find

these measures to be useful, we believe that investors benefit from seeing

results "through the eyes" of management in addition to seeing GAAP

results. We believe that these non-GAAP measures, when read in conjunction

with the Company's GAAP financials, provide useful information to investors

by offering:



    -- the ability to make more meaningful period-to-period comparisons of

the Company's on-going operating results;



    -- the ability to better identify trends in the Company's underlying

business and perform related trend analyses;



    -- a better understanding of how management plans and measures the

Company's underlying business; and



    -- an easier way to compare the Company's operating results against

analyst financial models and operating results of competitors that

supplement their GAAP results with non-GAAP financial measures.



    The following are explanations of each of the adjustments that we

incorporate into non-GAAP measures, as well as the reasons for excluding

each of these individual items in the reconciliations of these non-GAAP

financial measures:



    Stock-based compensation expense consists of non-cash charges for the

estimated fair value of stock options and unvested share bonus awards

granted to employees and assumed in business acquisitions. The Company

believes that the exclusion of these charges provides for more accurate

comparisons of its operating results to peer companies due to the varying

available valuation methodologies, subjective assumptions and the variety

of award types. In addition, the Company believes it is useful to investors

to understand the specific impact the application of SFAS 123R has on its

operating results.



    Restructuring charges include severance, impairment, lease termination,

exit costs and other charges primarily related to the closures and

consolidations of various manufacturing facilities. These costs may vary in

size based on the Company's acquisition and restructuring activities, are

not directly related to ongoing or core business results, and do not

reflect expected future operating expenses. These costs are excluded by the

Company's management in assessing current operating performance and

forecasting its earnings trends, and are therefore excluded by the Company

from its non-GAAP measures.



    Intangible amortization consists of non-cash charges that can be

impacted by the timing and magnitude of acquisitions. The Company considers

its operating results without these charges when evaluating its ongoing

performance and forecasting its earnings trends, and therefore excludes

such charges when presenting non-GAAP financial measures. The Company

believes that the assessment of its operations excluding these costs is

relevant to its assessment of internal operations and comparisons to the

performance of its competitors.



    Other charges or gains consist of various other types of items that are

not directly related to ongoing or core business results, such as

integration costs associated with restructuring activities undertaken in

connection with various business acquisitions, executive separation costs

and cumulative foreign exchange adjustments to the cost basis of

international entities that have been divested or liquidated. We exclude

these items because they are not related to the Company's ongoing

operational performance or do not affect core operations. Excluding these

amounts provide investors with a basis to compare Company performance

against the performance of other companies without this variability.



    Adjustment for taxes relates to the tax effects of the various

adjustments that we incorporate into non-GAAP measures in order to provide

a more meaningful measure on non-GAAP net income.



    (2) During the three-month period ended June 27, 2008 the Company

recognized charges primarily relating to restructuring and integration

activities initiated by the Company in an effort to consolidate and

integrate the Company's global capacity and infrastructure as a result of

its acquisition of Solectron Corporation. These activities, which included

closing, consolidating and relocating certain manufacturing and

administrative operations, elimination of redundant assets and reducing

excess workforce and capacity, were intended to optimize the company's

operational efficiency post acquisition.



    During the three-month period ended June 29, 2007 the Company

recognized restructuring charges for costs related to employee terminations

in Europe.



    (3) During the three-month period ended June 29, 2007 the Company

recognized net foreign exchange gains in connection with the divestiture of

a certain international entity.