Celestica to redeem outstanding LYONs

TORONTO, Aug. 25 /CNW/ - Celestica Inc. (NYSE: CLS, TSX: CLS/SV), a world
leader in electronics manufacturing services (EMS), today announced that it is
redeeming all of its Liquid Yield Option(TM) Notes due 2020 (Zero Coupon-
Subordinated) (the "LYONs") that are outstanding on September 23, 2005. Under
the terms of the LYONs, Celestica has the right to redeem all or any part of
the outstanding LYONs at any time after August 1, 2005. The redemption price
on September 23, 2005 will be US$575.84 per US$1,000 principal amount at
maturity. All LYONs outstanding on September 23, 2005 will be deemed to have
been redeemed by Celestica, whether or not they have been surrendered for
redemption, and all rights of the holders thereof will terminate, with the
exception of the holder's right to receive payment of the redemption price
upon the presentation and surrender of their LYONs. There is currently
US$2,149,000 principal amount at maturity of LYONs outstanding. The aggregate
cash purchase price will be approximately US$1,237,480.
In order for a holder to receive its payment, the holder's LYONs must be
delivered to JPMorgan Chase Bank, N.A., the trustee for the LYONs. Questions
and requests for assistance in connection with the process for the surrender
of LYONs may be directed to JPMorgan Chase Bank, N.A., at (800) 275-2048.

About Celestica
---------------
Celestica is a world leader in the delivery of innovative electronics
manufacturing services (EMS). Celestica operates a highly sophisticated global
manufacturing network with operations in Asia, Europe and the Americas,
providing a broad range of integrated services and solutions to leading OEMs
(original equipment manufacturers). Celestica's expertise in quality,
technology and supply chain management, and leadership in the global
deployment of Lean principles, enables the company to provide competitive
advantage to its customers by improving time-to-market, scalability and
manufacturing efficiency.
For further information on Celestica, visit its website at
www.celestica.com.
The company's security filings can also be accessed at www.sedar.com and
www.sec.gov.

Celestica Safe Harbour and Fair Disclosure Statement
----------------------------------------------------
This news release contains forward-looking statements related to our
future growth, trends in our industry and our financial and operational
results and performance that are based on current expectations, forecasts and
assumptions involving risks and uncertainties that could cause actual outcomes
and results to differ materially. These risks and uncertainties include, but
are not limited to: the challenges of effectively managing our operations
during uncertain economic conditions; the challenge of responding to lower-
than-expected customer demand; the effects of price competition and other
business and competitive factors generally affecting the EMS industry; our
dependence on the information technology and communications industries; our
dependence on a limited number of customers and on industries affected by
rapid technological change; component constraints; variability of operating
results among periods; and the ability to manage our restructuring and the
shift of production to lower cost geographies. These and other risks and
uncertainties and factors are discussed in the Company's various public
filings at www.sedar.com and http://www.sec.gov, including our Annual Report
on Form 20-F and subsequent reports on Form 6-K filed with the Securities and
Exchange Commission.
We disclaim any intention or obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise.
As of its date, this press release contains all material information
associated with this event.

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