Molex Announces Engagement of Ernst & Young LLP as Independent Auditor; Appoints new Chief Executive Officer and Announces CEO Succession Plan

Business Wire, Dec 9, 2004

LISLE, Ill. -- Molex Incorporated (NASDAQ: MOLX and MOLXA), a global electronic components company, announced today that the Audit Committee of Molex's Board of Directors has engaged Ernst & Young LLP to serve as Molex's independent auditor. Molex also announced the appointment of Frederick A. Krehbiel, a current Co-Chairman of the Board of Directors, as the Company's Chief Executive Officer and provided guidance regarding Molex's Chief Executive Officer succession plan.

Ernst & Young will commence serving as Molex's independent auditor effective immediately and will begin reviewing Molex's financial statements for the fiscal quarter ended September 30, 2004 under Statement of Auditing Standards No. 100 "Interim Financial Information." Molex plans to file an amendment to its Form 10-Q for the fiscal quarter ended September 30, 2004 as soon as practicable after Ernst & Young completes its review. Filing the planned amendment to the Form 10-Q after the SAS 100 review of the interim financial statements has been completed would make Molex current in its SEC filing obligations and in compliance with the applicable Nasdaq continued listing requirement.

The Molex Board of Directors named Frederick A. Krehbiel, Co-Chairman of the Board of Directors, as Chief Executive Officer of Molex effective December 9, 2004. Mr. Krehbiel previously served as Molex's Chief Executive Officer from 1988 to 1998 and as its Co-Chief Executive Officer from 1999 to 2001. Molex also announced that its Board had reviewed Molex's Chief Executive Officer succession plan and advised that, while no definitive action has yet been taken by the Board, the current expectation is that Martin P. Slark, Molex's President and Chief Operating Officer, would replace Mr. Krehbiel as Chief Executive Officer during the first fiscal quarter following the end of Molex's current fiscal year on June 30, 2005.

In addition, Molex announced that the Board of Directors accepted the resignation of J. Joseph King from his positions as Molex's Vice Chairman, Chief Executive Officer and as a member of the Board of Directors on December 9, 2004. Mr. King will continue to serve Molex in a staff function with responsibilities that include strategic planning and coordination of certain Molex functional areas. The Board also accepted the resignation of Diane Bullock from her positions as Vice President and Treasurer. Ms. Bullock will continue to serve Molex in a staff function with responsibilities that include the coordination of Molex's global procurement and logistics strategy and overseeing Molex's global lean manufacturing program. Neither Mr. King nor Ms. Bullock will be elected an officer of Molex, nor will their positions involve or significantly influence accounting, financial reporting or internal controls. The Board of Directors' actions were taken to facilitate the transition to a new independent auditor and include the conditions requested by Molex's previous independent auditor.

Frederick A. Krehbiel, Co-Chairman of the Board of Directors and newly appointed Chief Executive Officer, stated "We are pleased to announce the engagement of Ernst & Young as our new independent auditors."

Statements in this release that are not historical are forward-looking and are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Certain of these risks and uncertainties are set forth in Molex's 10-K and other documents filed with the Securities and Exchange Commission and include Molex's ability to timely comply with SEC and Nasdaq reporting obligations, continued listing of Molex's common stock and Class A common stock on the Nasdaq National Market, changes in key personnel, economic conditions in various regions, product and price competition and foreign currency exchange rate changes. Molex does not undertake to revise these forward-looking statements or to provide any updates regarding information contained in this release resulting from new information, future events or otherwise.

The Company's Annual Report, as well as news releases and other supplementary financial data is available by accessing the Company's website at www.molex.com.

Molex Incorporated is a 66-year-old manufacturer of electronic components, including electrical and fiber optic interconnection products and systems, switches and integrated products in 55 plants in 19 countries throughout the world.

Nasdaq has modified and appended an "E" to the trading symbols for Molex common stock (MOLXE) and Class A common stock (MOLAE) which will remain until Molex has remedied the previously disclosed non-compliance with Nasdaq listing requirements.