Haemonetics Announces Next Steps in Manufacturing Transformation

       Haemonetics Announces Next Steps in Manufacturing Transformation

-- Selection of Sanmina Corporation for Equipment Contract Manufacturing

-- Selection of Malaysian Location For Asian Manufacturing Site

-- Plan to Cease Production Operations at Italian Manufacturing Facility

PR Newswire

BRAINTREE, Mass., June 19, 2013

BRAINTREE, Mass., June 19, 2013 /PRNewswire/ --Haemonetics Corporation (NYSE:
HAE) today announced several important developments in the pursuit of its
previously announced manufacturing transformation.

(Logo: http://photos.prnewswire.com/prnh/20120206/NE47232LOGO )

  oHaemonetics has selected Sanmina Corporation (NASDAQ: SANM) for the future
    production of medical devices currently manufactured in Braintree,
    Massachusetts.Sanmina is a leading global provider of integrated
    manufacturing solutions, components, products and repair, logistics and
    after-market services for the medical industry. Their combination of
    advanced technologies, extensive manufacturing expertise and economies of
    scale will enable Sanmina to meet the specialized needs of Haemonetics in
    a cost-effective manner.
  oA location in Penang, Malaysia has been selected for the construction of
    an Asian manufacturing facility. This location offers Haemonetics
    proximity to customers in its fastest growing markets and to a number of
    key suppliers and medical equipment manufacturers, including key Sanmina
    Corporation facilities. Additionally, this location will afford
    Haemonetics ready access to a technically skilled and educated workforce,
    as well as an advantageous cost position in a stable economy.
  oThe Company announced plans to cease production operations at its
    manufacturing facility in Ascoli-Piceno, Italy during the current fiscal
    year 2014.Production of whole blood disposables sets, currently produced
    in Ascoli-Piceno, will be transferred to Haemonetics' manufacturing
    facilities in Tijuana, Mexico and Covina, California.

Brian Concannon, President and CEO, commented: "Sanmina provides comprehensive
manufacturing services to the medical industry at a scale that offers leading
technology and economic advantages to our company, with quality and compliance
at levels we require. The selection of Penang, Malaysia for our own
manufacturing site fits well with Sanmina's capabilities there and brings our
own production close to the emerging markets where much of our revenue growth
is being generated. Consolidation of our whole-blood manufacturing in Tijuana
and Covina will position us well for future growth. Our customers will
continue to be very well served by these additional advances of our
capabilities."

Combined integration costs and Value Creation & Capture ("VCC") investments,
expenditures, write-offs and savings amounts were previously disclosed in a
May 1 press release and detailed at the company's May 16 annual Investor Day
event. Such amounts have been updated to include the cessation of production
operations in Ascoli-Piceno, Italy and are summarized in a schedule posted to
the Company's Investor Relations website at the link which follows:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTkwNDAyfENoaWxkSUQ9LTF8VHlwZT0z&t=1

Since cash transformation costs and asset write-offs are excluded from the
Company's adjusted earnings and adjusted earnings per share, and since free
cash flows are considered before transformation costs, these additional
expenditures and costs have no impact upon the company's previously indicated
fiscal 2014 guidance.

About Haemonetics
Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing
innovative blood management solutions for our customers. Together, our
devices and consumables, information technology platforms, and consulting
services deliver a suite of business solutions to help our customers improve
patient care and reduce the cost of healthcare for blood collectors,
hospitals, and patients around the world. Our technologies address important
medical markets: blood and plasma component collection, the surgical suite,
and hospital transfusion services. To learn more about Haemonetics, visit our
web site at http://www.haemonetics.com.

Cautionary / Safe Harbor Language
This release contains forward-looking statements which involve risks and
uncertainties, including the validation of new manufacturing locations and
third-party suppliers, the performance of vendors and other business
partners, unexpected expenses related to the closure of operations within
Haemonetics' manufacturing network and development of a new manufacturing
site, labor unrest, fluctuations in foreign currency exchange rates and other
risks detailed in the Company's filings with the Securities and Exchange
Commission. The foregoing list should not be construed as exhaustive.

Forward-looking statements are based on estimates and assumptions made by
management of the Company and are believed to be reasonable, though inherently
uncertain and difficult to predict. Actual results and experience could
differ materially from the forward-looking statements.Information set forth
in this press release is current as of today and the Company undertakes no
duty or obligation to update this information.

CONTACT:
Gerry Gould, VP-Investor Relations
Tel. (781) 356-9402
gerry.gould@haemonetics.com
Alt. (781) 356-9613

SOURCE Haemonetics Corporation

Website: http://www.haemonetics.com
 
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