Molex hires new auditor; switches CEOs

Molex Inc. reports that its board of directors’ audit committee has hired Ernst & Young LLP to serve as Molex’s independent auditor. Molex’s board also has appointed Frederick Krehbiel, present board co-chairman and former CEO, to temporarily serve as the firm’s new CEO following the Dec. 9 resignation of J. Joseph King as CEO and board vice chairman. King reportedly will continue to serve Molex in a staff function with responsibilities that include strategic planning and coordination of certain Molex functional areas. The board states its actions were taken to facilitate the transition to its new independent auditor, and include the conditions requested by Molex’s previous independent auditor.

Molex also announced that its board has reviewed Molex’s CEO succession plan and advised that, while no definitive board action has yet been taken, its current expectation is that Martin Slark, Molex’s president and COO, will replace Krehbiel as CEO during the first fiscal quarter after Molex’s current fiscal year ends on June 30, 2005.

Ernst & Young has begun serving as Molex’s independent auditor and is reviewing Molex’s financial statements for the fiscal quarter that ended Sept. 30, 2004, under Statement of Auditing Standards No. 100, “Interim Financial Information.” Molex planned to amend its Form 10-Q for the fiscal quarter that ended Sept. 30, 2004, as soon as possible after Ernst & Young completed its review. Filing the planned Form 10-Q amendment would make Molex current in its SEC filing obligations and in compliance with the applicable Nasdaq continued listing requirement.

In addition, the board accepted the resignation of Diane Bullock as VP and treasurer. She will continue to serve Molex in a staff function with responsibilities that include coordination of Molex’s global procurement and logistics strategy, and overseeing Molex’s global lean manufacturing program. Neither King nor Bullock will be elected an officer of Molex, nor will their positions involve or significantly influence accounting, financial reporting, or internal controls.

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