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| [March 17, 2005] |
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PEMSTAR Announces Settlement of Shareholder Litigation
ROCHESTER, Minn. --(Business Wire)-- March 17, 2005 -- PEMSTAR Inc. (Nasdaq:PMTR), announced today that it has reached settlement agreements related to its securities class action lawsuit and consolidated derivative lawsuits, which were brought in 2002 on behalf of purchasers and shareholders of PEMSTAR securities. Under the settlements, the company expressly denies any violation of the securities laws.
Under the settlement agreement relating to the securities class action, $11,750,000 will be paid by the company's insurers and $250,000 will be paid by PEMSTAR to settle the lawsuit. The settlement agreement relating to the derivative lawsuits requires PEMSTAR to enhance certain corporate governance policies and provides for payment of plaintiff's attorney fees which will also be covered by the company's insurers. The settlement agreements are subject to court approval. The settlements will not materially impact PEMSTAR's earnings.
Al Berning, PEMSTAR's chairman and CEO, said, "The settlements are a positive development and represent the latest step in our continued progress as we focus our efforts on the success of our business."
About PEMSTAR
PEMSTAR Inc. (www.pemstar.com) provides a comprehensive range of engineering, product design, manufacturing and fulfillment services to customers on a global basis through facilities strategically located in the Americas, Asia and Europe. The company's service offerings support customers' needs from product development and design, through manufacturing to worldwide distribution and aftermarket support. PEMSTAR has over one million square feet in 14 locations worldwide.
This press release may contain "forward-looking" statements. These forward-looking statements, including statements made by Mr. Berning, may contain statements of intent, belief or current expectations of PEMSTAR Inc. and its management. Such forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements. In addition to factors discussed above, risks and uncertainties that may cause such differences for PEMSTAR include but are not limited to: recession or decline in economic conditions; rumors or threats of war; actual conflicts or trade disruptions; trade disruptions resulting from world health alerts or actual disease outbreaks; changes in demand for electronics manufacturing services; changes in demand by major customers due to cancellations, reductions or delays of orders; shortages or price fluctuations in component parts; difficulties managing expansion and integrating acquired businesses; increased competition; the courts' failure to approve the class action and derivative settlements and other risk factors listed from time to time in PEMSTAR's Securities and Exchange Commission filings, including but not limited to risks as included in Exhibit 13.1 of PEMSTAR's Annual Report on Form 10-K for the fiscal year ended March 31, 2004, as amended, and in PEMSTAR's Quarterly Reports on Form 10-Q filed since March 31, 2004.
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