CELESTICA COMPLETES MERGER WITH IMSCELESTIC

AAP General News (Australia)
12-31-1998
CELESTICA COMPLETES MERGER WITH IMSCELESTIC

CELESTICA COMPLETES MERGER WITH IMS

TORONTO, Dec. 30 /CNW-AsiaNet/ - Celestica Inc. (NYSE, TSE, ME: CLS), a
world leader in electronics manufacturing services (EMS), today announced the
company has completed its merger with International Manufacturing Services,
Inc. ("IMS"), (Nasdaq: IMSX), also a provider of EMS services to OEMs,
predominantly in Asia.

As a result of the merger, IMS is now a wholly-owned subsidiary of
Celestica and will operate as Celestica Asia. Of the approximately 19.0
million IMS shares outstanding at closing, less than 0.2% were tendered for
total cash consideration of approximately US$0.2 million (US$7.00 per share)
and the balance will be exchanged for Celestica shares at an exchange ratio
of 0.40 of a Celestica Subordinate Voting Share for each Class A and Class B
share of IMS common stock. As a result, approximately 7.6 million Celestica
Subordinate Voting Shares will be issued. The total transaction value,
including consideration for shares, stock options and assumption of US$37
million of debt, is approximately US$177 million.

Mr. Eugene Polistuk, President and Chief Executive Officer of Celestica,
welcomed former shareholders of IMS as new shareholders of Celestica saying
that "IMS provides Celestica with a strategic presence in Asia and
significantly strengthens its leadership position within the EMS industry."

In connection with the merger, Celestica expects to record a non-cash
write-off of approximately $12 million.

About Celestica

With over 14,000 employees worldwide, Celestica operates 24
manufacturing and design facilities in the United States, Canada, Mexico, the
United Kingdom, Ireland, Thailand, Hong Kong and China. Celestica provides a
broad range of services including design, prototyping, assembly, testing,
product assurance, supply chain management, worldwide distribution and
after-sales service. Its customers include industry leading original equipment
manufacturers (OEMs), primarily in the computer and communications sectors.

For further information on Celestica, visit its website at
http://www.celestica.com.



For further information: Laurie Flanagan, (416) 448-5790,
flanagan(at)celestica.com/

KY: CELESTICA INC.; INTERNATIONAL MANUFACTURING SERVICES, INC.

CY: TORONTO
CK: HS
DN: JMP

KEYWORD: CELESTICA COMPLETES M TORONTO

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