Flextronics to Acquire 55% of Hughes Software Systems

Flextronics will acquire Hughes Network Systems' entire ownership stake of fifty-five percent (55%) in Hughes Software Systems (HSS), a leading provider of software products and services to telecom infrastructure companies, for a total cash consideration of approximately US$226 million (Rs547 per share). HSS, which is based in India, provides convergent software solutions for fixed and mobile networks for both voice and data. Its products and services span a variety of domains, such as optical networks, wireless networks, satellite networks, switching systems, convergent networks and broadband networks. HSS' product portfolio includes protocol stacks and value-added frameworks and are comprised of licensable technologies focused on Voice over Packets (VoP), SS7, broadband and wireless (GPRS/UMTS) products that provide customers with open architecture solutions.



HSS' shares trade in India on the Bombay Stock Exchange and the National Stock Exchange . Some of its customers include many of the world's largest telecom companies. HSS reported revenue of Rs3,604 million (approximately US$80 million) and net income of Rs769 million (approximately US$17 million) in its fiscal year ended March 31, 2004. Revenues grew approximately 63% in fiscal 2004 and are expected to grow approximately 25% in fiscal 2005. HSS has about 2,400 employees.



Flextronics said that by partnering with HSS, it can now provide a complete outsourcing solution to telecom OEMs. This includes engineering/design services, system assembly and manufacturing, logistics services, and after-market services, such as repair and warranty services as well as network and communications installation and maintenance.



Flextronics is headquartered in Singapore. http://www.flextronics.comhttp://www.hssworld.com/