Dec. 12, 2001 – San Jose, CA – Photon Dynamics Inc., a supplier of integrated yield management solutions for the display, electronics, and glass markets, has entered into a manufacturing agreement with Sanmina-SCI Corp., an electronics manufacturing services provider.

Photon Dynamics entered into the agreement in an effort to reduce its fixed expenses and provide its FPD division with increased flexibility to meet the cyclical demands of the marketplace, while maintaining a high level of product quality for its FPD customers.

Under the terms of the agreement, Photon Dynamics will begin outsourcing its FPD manufacturing to Sanmina-SCI at Photon Dynamics’ San Jose, CA, FPD facility. Sanmina-SCI will sublease a portion of the facility, and acquire certain assets needed for the manufacture of the FPD products.

Photon Dynamics does not anticipate any employee reductions in connection with the agreement.

“We’ve had a relationship with Sanmina-SCI for nearly 18 months when they began building our FPD division sub-assemblies and lower-frames, and soon after they became a supplier and customer of our Electronics division. We look forward to our expanded relationship with Sanmina-SCI resulting from our new agreement,” said Vince Sollitto, president and CEO, Photon Dynamics.