Electronics manufacturing services (EMS) provider Flextronics (Singapore) and Hughes Network Systems Inc., a wholly-owned subsidiary of The DIRECTV Group Inc., have signed an agreement for Flextronics to acquire Hughes Network Systems' entire ownership stake of 55% in Hughes Software Systems (HSS, New Delhi, India), a provider of software products and services to telecom infrastructure companies.

HSS' shares trade in India on the Bombay Stock Exchange and the National Stock Exchange . The company reported revenue of approximately $80 million and net income of approximately $17 million in its fiscal year ended March 31, 2004. Revenues grew approximately 63% in fiscal 2004 and are expected to grow 25% in fiscal 2005.

HSS 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.

By partnering with HSS, Flextronics is the first EMS provider to offer embedded and application software development for telecom infrastructure products and customers. Flextronics can now provide a complete outsourcing solution to telecom original equipment manufacturers (OEMs).

Subject to regulatory approval, the transaction is expected to close no later than October 2004 with an approximate total purchase price of $226 million.

www.hssworld.com

www.flextronics.com

Copyright 2004, UP Media Group. All rights reserved.

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