Symmetricom to Expand Outsourcing with Sanmina-SCI

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Tue Apr 6, 2010 9:00am EDT

Expected Savings of Approximately $6 Million per Year after Transition
SAN JOSE, Calif.--(Business Wire)--
Symmetricom, Inc. (NASDAQ: SYMM), a major supplier of precise time and frequency
technologies, today announced that it has entered into an agreement to transfer
product fabrication processes and related activities from Symmetricom`s
Aguadilla, Puerto Rico facility to Sanmina-SCI facilities. The transfer is
expected to be complete within one year. 

Symmetricom`s Puerto Rico-based operations, which include assembly, testing,
repair and logistics, will be transitioned to Sanmina-SCI manufacturing sites.
Sanmina-SCI, a leading global Electronics Manufacturing Services (EMS) company,
currently produces Symmetricom`s printed circuit board assemblies (PCBAs).
Symmetricom expects to continue to manufacture highly specialized core atomic
time technology and selected military products in its other facilities. 

Costs related to the transition are expected to total approximately $15 million
over the next year, including $13.5 million in cash. Symmetricom will begin
incurring these costs immediately. The company plans to build approximately $4.0
million in buffer inventory to support the transition. Once the transition is
completed, Symmetricom expects to save approximately $6.0 million per year and
bring the benefit of a more flexible and efficient supply chain to its customers
worldwide. 

"Taking this action will enable us to focus on the cost-effective development of
key products and technologies that generate, distribute, and apply precise
time," said Dave Cộté, president and CEO of Symmetricom. "We initiated our
outsourcing strategy in 2008 by transferring manufacturing of PCBAs to
Sanmina-SCI, and we expect this transition to further enhance our supply chain
and competitive position." 

Under the agreement, Symmetricom will not transfer its physical facility or the
manufacturing assets located in Puerto Rico to Sanmina-SCI. Symmetricom intends
to shut down the Puerto Rico manufacturing facility at the end of the transfer
period. Approximately 150 employees will be affected. 

"We are very grateful to our employees in Puerto Rico for their dedication and
the many contributions they have made to Symmetricom," said Cộté. 

About Symmetricom, Inc.

Symmetricom (NASDAQ: SYMM), a world leader in precise time solutions, sets the
world`s standard for time. The company generates, distributes, and applies
precise time for the communications, aerospace/defense, IT infrastructure and
metrology industries. Our customers, from communications service providers and
network equipment manufacturers to governments and their suppliers worldwide are
able to build more reliable networks and systems by using our advanced timing
technologies, atomic clocks, services and solutions. All of our products support
today`s precise timing standards, including GPS-based timing, IEEE 1588 (PTP),
Network Time Protocol (NTP), Synchronous Ethernet and DOCSIS timing. Symmetricom
is based in San Jose, Calif., with offices worldwide. For more information,
visit: www.symmetricom.com. 

Safe Harbor

This press release contains forward-looking information within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and is subject to the safe harbor
created by those sections. These forward-looking statements include statements
concerning estimates of transition costs, expected effects of the transition
(including expected annual cost reductions) and statements concerning
Symmetricom`s future operations and profitability. The statements in this press
release are made as of the date of this press release, even if subsequently made
available by Symmetricom on its website or otherwise. Symmetricom`s actual
results could differ materially from those projected or suggested in these
forward-looking statements. Factors that could cause future actual results to
differ materially from the results projected in or suggested by such
forward-looking statements include: reduced rates of demand for
telecommunication products, cable products or test and measurement products, our
customers` ability and need to upgrade existing equipment, our ability to
maintain or reduce manufacturing and operating costs, timing of orders,
cancellation or delay of customer orders, loss of customers, customer acceptance
of new products, recessionary pressures, risks associated with consummating a
divestiture, geopolitical risks such as terrorist acts and the risk factors
listed from time to time in Symmetricom`s reports filed with the Securities and
Exchange Commission, including the annual report on Form 10-K for the fiscal
year ended June 28, 2009 and subsequent Form 10-Q`s and 8-K`s. 

SYMM-G

Symmetricom
Dan Madden, 408-428-7929
VP Finance and Investor Relations
dmadden@symmetricom.com

Copyright Business Wire 2010

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