Flextronics Announces Results for Fourth Quarter and Fiscal Year 2009

SINGAPORE, April 29 /PRNewswire-FirstCall/ -- Flextronics (Nasdaq: FLEX) today
announced results for its fourth quarter and fiscal year ended March 31, 2009
as follows:

(US$ in millions, except EPS) Three-Month Twelve-Month
Periods Ended Periods Ended
March 31, March 31, March 31, March 31,
2009 2008 2009 2008

Net sales $5,583 $7,775 $30,949 $27,558
GAAP operating income $(109) $14 $277 $331
Adjusted operating
Income (1) $51 $263 $811 $887
GAAP net loss $(240) $(93) $(6,086) $(639)
Adjusted net income (1) $22 $215 $605 $745
GAAP EPS $(0.30) $(0.11) $(7.41) $(0.89)
Adjusted EPS (1) $0.03 $0.26 $0.74 $1.02

(1) A reconciliation of non-GAAP financial measures to GAAP financial
measures is presented in Schedule II attached to this press release.

Fourth Quarter and Fiscal Year Results
Net sales for the fourth quarter ended March 31, 2009 were $5.6 billion
compared to net sales for the fourth quarter ended March 31, 2008 of $7.8
billion. Adjusted operating income for the fourth quarter ended March 31, 2009
was $50.6 million with an adjusted operating margin of 0.9%, compared to
adjusted operating income of $262.5 million and an adjusted operating margin
of 3.4% one year ago. Adjusted net income for the fourth quarter ended March
31, 2009 was $21.7 million and adjusted EPS was $0.03, compared to $214.5
million and $0.26, respectively, for the year ago quarter.

Net sales for the fiscal year ended March 31, 2009 were $30.9 billion compared
to net sales for the fiscal year ended March 31, 2008 of $27.6 billion.
Adjusted operating income in fiscal year 2009 was $811.2 million with an
adjusted operating margin of 2.6%, compared to adjusted operating income of
$887.2 million and an adjusted operating margin of 3.2% one year ago.
Adjusted net income in fiscal year 2009 was $605.0 million and adjusted EPS
was $0.74, compared to $744.8 million and $1.02, respectively, for the
previous fiscal year.

On March 10, 2009, Flextronics announced restructuring plans intended to
rationalize its global manufacturing capacity and infrastructure due to the
current macroeconomic conditions. In connection with its restructuring plans,
the Company expected to recognize between $220 million and $250 million in
pre-tax restructuring charges, with total cash expenditures expected to be
between $130 million and $150 million. During the fourth quarter ended March
31, 2009, Flextronics recognized $151 million of pre-tax restructuring charges
comprised of $95 million of cash charges predominantly related to employee
severance and benefits and $56 million of non-cash asset impairment charges.
The Company does not anticipate any changes to its original plans or
estimates and expects to complete its restructuring activities within the next
six months.

Cash and cash equivalents totaled $1.8 billion at March 31, 2009. During the
fourth quarter ended March 31, 2009, Flextronics generated $286 million of
operating cash flow and $197 million of free cash flow (defined as net cash
provided by operating activities, less purchases of property & equipment, net
of dispositions). Also during the quarter ended March 31, 2009, Flextronics
further strengthened its capital structure through a reduction of $200 million
in borrowing under its $2.0 billion revolving credit facility, which as of
March 31, 2009 had no outstanding borrowings.

"As a result of our disciplined focus, we improved our financial strength
during this period of significant economic challenge by reducing costs,
improving working capital and generating strong cash flow. Sequentially, we
drove down adjusted SG&A expense by 13% and reduced inventory by more than
$500 million. In addition, we successfully generated $197 million of free
cash flow during the March quarter to further deleverage our balance sheet,"
said Paul Read, chief financial officer of Flextronics.

"Our main focus remains on managing the controllable aspects of our business
and positioning the Company for future growth and profitability," said Mike
McNamara, chief executive officer of Flextronics. "Top priorities are to
control costs, improve internal efficiencies, reduce inventory levels, manage
our working capital, generate strong cash flow and improve our capital
structure. We are confident in our ability to adapt to economic headwinds
while maintaining our scale and competitive advantages."

Guidance
The Company's guidance reflects the challenging demand environment and the
benefits of the actions the Company has taken to reduce costs and restructure
the business. For the first quarter ending July 3, 2009, revenue is expected
to be in the range of $5.0 billion to $6.0 billion and adjusted EPS is
expected to be in the range of $0.04 to $0.08 per share.

GAAP earnings per share are expected to be lower than the guidance provided
herein by approximately $0.15 per diluted share for estimated restructuring
activities, quarterly intangible amortization, stock-based compensation
expense and non-cash interest expense.

2004 Award Plan for New Employees
Separately and in the ordinary course of business, Flextronics granted 27,500
share bonus awards to new employees on March 2, 2009 from the 2004 Award Plan
for New Employees. The share bonus awards vest over three years and unvested
awards expire upon termination of employment.

Conference Calls and Web Casts
A conference call hosted by Flextronics's management will be held today at
5:00 p.m. EST / 2:00 p.m. PST to discuss the Company's financial results for
the fourth quarter ended March 31, 2009.

The conference call will be broadcast via the Internet and may be accessed by
logging on to the Company's website at www.flextronics.com. Additional
information in the form of a slide presentation may also be found on the
Company's site. A replay of the broadcast 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, industrial, infrastructure, medical and
mobile OEMs. With fiscal year 2009 revenues of US$30.9 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
www.flextronics.com.

This press release contains forward-looking statements within the meaning of
U.S. securities laws, including statements related to future expected revenues
and earnings per share. 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 future revenues and earnings may not be achieved as expected; the risks
to our particular electronics and technology sector of economic instability
and a slowdown in consumer spending, particularly given the current economic
conditions; the effects of customer or supplier bankruptcies or insolvency;
the effects that current credit and market conditions could have on the
liquidity and financial condition of customers or suppliers, including any
impact on their ability to meet contractual obligations to us on terms and
conditions previously negotiated; the effects that the current macroeconomic
environment could have on our liquidity and ability to access credit markets;
our dependence on industries that continually produce technologically advanced
products with short life cycles; 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 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, including any
effects related to the expiration of tax holidays; 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; our dependence on the continued trend of
outsourcing by OEMs; 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 Twelve-Month Periods
Ended Ended
March 31, March 31, March 31, March 31,
2009 2008 2009 2008

GAAP:
Net sales $5,582,524 $7,775,352 $30,948,575 $27,558,135
Cost of sales 5,344,844 7,324,057 29,513,011 25,972,787
Restructuring charges 128,817 187,412 155,134 408,945

Gross profit 108,863 263,883 1,280,430 1,176,403

Selling, general and
administrative
expenses 195,825 246,304 979,060 807,029
Restructuring charges 21,753 3,770 24,651 38,743

Operating income
(loss) (108,715) 13,809 276,719 330,631

Goodwill impairment - - 5,949,977 -
Intangible amortization 27,696 60,873 135,872 112,317
Other expense, net 74,129 - 83,439 61,078
Interest and other
expense, net 47,115 32,220 188,369 91,569

Income (loss) before
income taxes (257,655) (79,284) (6,080,938) 65,667

Provision for (benefit
from) income Taxes (17,858) 13,560 5,209 705,037
Net income (loss) $ (239,797) $ (92,844) $(6,086,147) $(639,370)

EPS:
GAAP $ (0.30) $ (0.11) $ (7.41) $ (0.89)
Non-GAAP $ 0.03 $ 0.26 $ 0.74 $ 1.02

Diluted shares used
in computing GAAP
per share amounts 809,608 835,162 820,955 720,523
Diluted shares used
in computing non-GAAP
per share amounts 809,742 839,638 822,545 727,392

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
March 31, % of March 31, % of
2009 Sales 2008 Sales

GAAP gross profit $108,863 2.0% $263,883 3.4%
Stock-based
compensation
expense 2,662 2,400
Distressed
customer charges (2) (5,232) -
Restructuring and
other charges (3) 128,817 217,786
Non-GAAP gross
profit $235,110 4.2% $484,069 6.2%

GAAP SG&A expenses $195,825 3.5% $246,304 3.2%
Stock-based
compensation
expense 6,092 12,869
Distressed
customer charges (2) 5,232 -
Restructuring and
other charges (3) - 11,913
Non-GAAP SG&A
expenses $184,501 3.3% $221,522 2.8%

GAAP operating
income (loss) $(108,715) -1.9% $13,809 0.2%
Stock-based
compensation
expense 8,754 15,269
Distressed
customer charges (2) - -
Restructuring and
other charges (3) 150,570 233,469
Non-GAAP operating
income $50,609 0.9% $262,547 3.4%

GAAP net income
(loss) $(239,797) -4.3% $(92,844) -1.2%
Stock-based
compensation
expense 8,754 15,269
Distressed
customer charges (2) - -
Restructuring and
other charges (3) 150,570 233,215
Intangible
amortization 27,696 61,478
Gain on repurchase
of debt (4) - -
Goodwill
impairment (5) - -
Other -
impairments (6) 74,129 -
Other (7) - -
Adjustment for
taxes (8) 319 (2,587)
Non-GAAP net
income (loss) $21,671 0.4% $214,531 2.8%

GAAP income taxes $(17,858) -0.3% $13,560 0.2%
U.S. deferred tax
asset impairment (8) - -
Restructuring and
integration
charges (8) (2,657) 214
Intangible
amortization (8) 2,338 2,373
Non-GAAP income
taxes $(18,177) -0.3% $16,147 0.2%

EPS:
GAAP $(0.30) $(0.11)
Non-GAAP $0.03 $0.26

Twelve-Month Periods Ended
March 31, % of March 31, % of
2009 Sales 2008 Sales

GAAP gross profit $1,280,430 4.1% $1,176,403 4.3%
Stock-based
compensation expense 10,053 7,367
Distressed customer
charges (2) 189,464 -
Restructuring and other
charges (3) 176,639 438,681
Non-GAAP gross profit $1,656,586 5.4% $1,622,451 5.9%

GAAP SG&A expenses $979,060 3.2% $807,029 2.9%
Stock-based
compensation expense 51,696 43,210
Distressed customer
charges (2) 73,254 -
Restructuring and other
charges (3) 8,700 28,576
Non-GAAP SG&A expenses $845,410 2.7% $735,243 2.7%

GAAP operating income
(loss) $276,719 0.9% $330,631 1.2%
Stock-based
compensation expense 61,749 50,577
Distressed customer
charges (2) 262,718 -
Restructuring and other
charges (3) 209,990 506,000
Non-GAAP operating
income $811,176 2.6% $887,208 3.2%

GAAP net income (loss) $(6,086,147) -19.7% $(639,370) -2.3%
Stock-based
compensation expense 61,749 50,577
Distressed customer
charges (2) 272,718 -
Restructuring and other
charges (3) 213,668 514,224
Intangible amortization 135,872 117,359
Gain on repurchase of
debt (4) (28,148) -
Goodwill impairment (5) 5,949,977 -
Other - impairments (6) 101,587 61,078
Other (7) - (9,309)
Adjustment for taxes (8) (16,260) 650,245
Non-GAAP net income
(loss) $605,016 2.0% $744,804 2.7%

GAAP income taxes $5,209 0.0% $705,037 2.6%
U.S. deferred tax asset
impairment (8) - (661,274)
Restructuring and
integration charges (8) 2,019 5,751
Intangible amortization (8) 14,241 5,278
Non-GAAP income taxes $21,469 0.1% $54,792 0.2%

EPS:
GAAP $(7.41) $(0.89)
Non-GAAP $0.74 $1.02

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)

March 31, 2009 March 31, 2008
ASSETS

Current Assets:
Cash and cash equivalents $1,821,886 $1,719,948
Accounts receivable, net 2,316,939 3,550,942
Inventories 2,996,785 4,118,550
Other current assets 799,396 923,497
7,935,006 10,312,937

Property and equipment, net 2,333,781 2,465,656
Goodwill and other intangibles, net 291,491 5,876,741
Other assets 757,202 869,581
$11,317,480 $19,524,915

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Bank borrowings, current portion of
long-term debt and capital
lease obligations $19,358 $28,591
Zero Coupon Convertible Junior
Subordinated Notes due 2009 195,000 -
Accounts payable 4,049,534 5,311,337
Other current liabilities 2,150,834 2,061,087
Total current liabilities 6,414,726 7,401,015

Long-term debt, net of current portion:
Acquisition Term Loan due 2012 and 2014 1,692,024 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 239,993 500,000
Zero Coupon Convertible Junior
Subordinated Notes due 2009 - 195,000
Other long-term debt and capital lease
obligations 21,553 182,369
Other liabilities 313,321 571,119

Total shareholders' equity 1,834,151 8,164,444
$11,317,480 $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 items, stock-based compensation expense, restructuring charges,
intangible amortization, gains or losses on divestitures, financially
distressed customer charges, goodwill impairment charges 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.

Distressed customer charges are comprised of additional provisions for
doubtful accounts receivable, inventory and related obligations for customers
that are experiencing significant financial difficulties. These costs are
excluded by the Company's management in assessing its current operating
performance and forecasting its earnings trends, and accordingly, are 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.

Goodwill impairment consists of non-cash charges that primarily resulted from
the Company's net book value exceeding its market capitalization due to the
weak macroeconomic environment and resulting adverse equity market conditions.
These charges are non-recurring in nature and do not impact the Company's
normal business operations, liquidity or availability under its credit
facilities. 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, impairment charges associated with non-core
investments and notes receivable, gains on the extinguishment of debt,
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 and twelve-month periods ended March 31, 2009, the
Company recognized charges primarily for provisions for doubtful accounts
receivable, the write-down of inventory and recognition of associated
contractual obligations associated with certain customers that are currently
experiencing significant financial and liquidity difficulties. During the
fourth fiscal quarter of 2009, the Company revised its initial estimates
between charges associated with the write-off of inventory and provisions for
doubtful accounts receivable with no net operating income impact. During the
twelve-month period ended March 31, 2009, the Company also recognized charges
for the write-down of an investment in one of these customers, which is
included in other expense, net for the same period.

(3) During the three and twelve-month periods ended March 31, 2009, the
Company recognized restructuring charges as a result of deteriorating
macroeconomic conditions. The global economic crisis and related decline in
the Company's customers' products across all of the industries it serves, has
caused the Company's OEM customers to reduce their manufacturing and supply
chain outsourcing and has negatively impacted the Company's capacity
utilization levels. The Company's restructuring activities, which include
employee severance, costs related to owned and leased facilities and equipment
that is no longer in use and is to be disposed of, and other costs associated
with the exit of certain contractual arrangements due to facility closures,
are intended to improve its operational efficiencies by reducing excess
workforce and capacity. In addition to the cost reductions, these activities
will result in further shift of manufacturing capacity to locations with
higher efficiencies and, in most instances, lower costs.

During the three and twelve -month periods ended March 31, 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.

(4) During December 2008, the Company paid approximately $226.2 million to
purchase an aggregate principal amount of $260.0 million of its outstanding 1%
Convertible Subordinated Notes due August 1, 2010. The Company recognized a
gain on the partial extinguishment of the notes for the twelve-month period
ended December 31, 2008, which is net of approximately $5.7 million for
estimated transaction costs and the write-off of related debt issuance costs.

(5) During December 2008, the Company recorded an impairment charge to
write-off the carrying value of its recorded goodwill. The impairment charge
was primarily driven by the weak macroeconomic environment and resulting
adverse equity market conditions that created a decrease in market multiples
as well as a decline in the Company's own market capitalization. This
non-cash charge does not impact the Company's normal business operations,
liquidity or availability under its credit facilities.

(6) During the three and twelve-month periods ended March 31, 2009, the
Company impaired its carrying value in certain notes receivable due to a
reduction in estimated recoverability. During the twelve-month period ended
March 31, 2009, the Company also recognized non-cash other-than-temporary
impairment charges on certain of its non-core investments primarily resulting
from the recent macro-economic environment.

During the twelve-month period ended March 31, 2008, the Company recognized
other-than-temporary impairment and related charges on certain of its non-core
investments, primarily resulting from a divestiture of a certain investment
for which the Company received approximately $57.4 million in cash proceeds
during the quarter ended March 31, 2008.

(7) During the twelve-month period ended March 31, 2008, the Company
recognized net foreign exchange gains in connection with the divestiture of a
certain international entity.

(8) The Company recognized non-cash tax expense of $661.3 million during the
twelve-month period ended March 31, 2008 principally resulting from the
Company's re-evaluation of previously recorded deferred tax assets in the
United States, which were primarily comprised of tax loss carry forwards, and
the determination that the likelihood that certain deferred tax assets will be
realized decreased because the Company expected future projected taxable
income in the United States will be lower as a result of increased interest
expense resulting from the term loan entered into as part of the acquisition
of Solectron. During the three and twelve-month periods ended March 31, 2009
and 2008, the Company also recognized tax benefits related to its
restructuring and other activities, and amortization of intangible assets.

SOURCE Flextronics

Investor Relations, Warren Ligan or Cindy Klimstra, +1-408-576-7722,
investor_relations@flextronics.com, or Renee Brotherton, Vice President,
Corporate Communications, +1-408-576-7189, renee.brotherton@flextronics.com,
all of Flextronics