Celestica to repurchase LYONs

TORONTO, July 5 /CNW/ - Celestica Inc. (NYSE, TSX: CLS), a world leader
in electronics manufacturing services (EMS), today announced that holders of
its Liquid Yield Option(TM) Notes due 2020 (Zero Coupon-Subordinated) (the
"LYONs") have the right to surrender their LYONs for purchase as of July 5,
2005. Each holder of the LYONs has the right to require Celestica to purchase
on August 2, 2005 all or any part of such holder's LYONs at a price equal to
US$572.82 per US$1000 principal amount at maturity. Under the terms of the
LYONs, Celestica has the option to settle its repurchase obligation in cash,
subordinate voting shares, or a combination of cash and subordinate voting
shares, and has elected to pay for the LYONs solely with cash. If all
outstanding LYONs are surrendered for purchase, the aggregate cash purchase
price will be approximately US$352 million.
In order to surrender LYONs for purchase, a purchase notice must be
delivered to JPMorgan Chase Bank, the trustee for the LYONs, on or before 
5:00 p.m. EDT, on or before August 2, 2005. 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. Holders of LYONs
complying with the transmittal procedures of the Depository Trust Company need
not submit a physical purchase notice to JPMorgan Chase Bank. Holders may
withdraw any LYONs surrendered for purchase in response to this offer at any
time prior to 5:00 p.m., EDT, on August 2, 2005.
Celestica will file a Tender Offer Statement on Schedule TO with the
Securities and Exchange Commission on July 5, 2005. Celestica will make
available to LYONs holders, through the Depository Trust Company, documents
specifying the terms, conditions and procedures for surrendering and
withdrawing LYONs for purchase. LYONs holders are encouraged to read these
documents carefully before making any decision with respect to the surrender
of LYONs, because these documents contain important information regarding the
details of Celestica's obligation to purchase the LYONs.
The LYONs are convertible under certain circumstances into 5.6748 shares
of Celestica subordinate voting shares per US$1,000 principal amount at
maturity of LYONs, subject to adjustment under certain circumstances.

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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