The global trend of outsourcing the development and manufacture of products is stronger than ever as more companies are realizing the cost competitive and strategic advantages.

Jabil has always strived to maintain a diversified customer base in order to minimize our dependency on specific customer or industry sectors. We have made great progress over the past five years and our business is much more predictable as a result.

During the late 1990’s, the explosive growth of the internet and the build-out of hardware for internet and networking infrastructure pushed growth rates to extremely high levels. This growth masked an important evolutionary driver: outsourcing of electronic product design and manufacturing was spreading to new industries and sectors. In 2005, we anticipate that markets apart from communications equipment will account for approximately 65 percent of Jabil’s revenue. We continue to strengthen that mix by entering new markets, engaging with new customers and maintaining the long-term relationships on which Jabil has built its business.

Jabil’s entry and expansion into the Instrumentation and Medical market is a strong example of our success in capturing new business and diversifying our customer base. By listening to leaders in the sector, determining their needs and structuring our services to meet them, Jabil has tapped into a promising new growth opportunity. In 2005, the Instrumentation and Medical sector is expected to be Jabil’s third largest sector, contributing approximately 16 percent of net revenue.

For Jabil, the Instrumentation and Medical sector has grown exponentially for the past several years and we are optimistic about future growth prospects. A mere 10 percent of this $40 to $50 billion market is now outsourced, giving us ample room for additional growth. Jabil will remain at the front of this trend by continually developing the specialized skills and knowledge necessary to provide companies additional services to serve markets around the world.