LISLE, Ill. -- Molex Incorporated (NASDAQ: MOLX and MOLXA), a global electronic components company, today reported that as a result of continuing weak industry conditions, the company will reduce worldwide employment by approximately 900 full time employees and approximately 600 temporary employees. In addition, Molex will write off slow and excess inventory and has announced the closing of three smaller plants. The total pretax charge as a result of these actions will be approximately $42 million and will be taken in the June 2001 quarter. As of December 31, 2000, Molex total worldwide employment was 19,300. As business slowed, Molex reduced temporary personnel by approximately 1,000 people. Now, the company is reducing temporary personnel by 600 additional people. Molex will reduce the 900 full time employees by a combination of voluntary early retirement, involuntary reductions and natural attrition. These employment reductions will result in a charge of approximately $25 million. The inventory write off will be approximately $12 million. The remaining $5 million is for items associated with the plant closings. All of these charges are pretax. Fred A. Krehbiel, Co-Chairman and Co-Chief Executive Officer, said, "Before making this very difficult decision to reduce full time staff, Molex went through a process of reducing expenses in all areas of the company. This included reducing temporary employees; reducing salaries for officers and executives worldwide by 15% to 40% and for U.S. salaried employees by 10% during the June 2001 quarter; and reducing work weeks to four days in most factories worldwide. However, the continuing down turn in the computer, telecom and consumer markets makes it apparent that this action is necessary to size the company more closely to projected future levels of business." Krehbiel added, "Molex is working to balance the short and long term needs of both the company and its employees during a very difficult period."Molex Inc.