JE News update: Sichuan Earthquake

15th May, 2008

As all of us are aware, the situation is very bad in parts of Sichuan. Even although the authorities have responded rapidly and are giving this top priority; there is so much to be done, especially on a personal level. The scale of the need is indeed daunting, food, water, clothing, bedding, shelter and medicines are all in great demand.

Johnson Electric has already donated HK$ 1 million to the Liaison Office of the Peoples Republic of China in Hong Kong, who will send the funds to the relief effort in Sichuan. An employee contribution scheme has also been set up and the contributions will be matched by JE. This money will be donated to the Red Cross who will channel the funds to support their efforts in Sichuan.

The Johnson Electric human resource group in China have been in contact with employees who have family members in the affected region. These employees will be supported in their efforts to locate and assist family members in Sichuan.

On a business front, all of JE's 6 suppliers in Sichuan have been contacted and all have escaped any serious damage to their plant and equipment. However, 3 have a problem with electricity supply, this situation is being monitored daily. In the meantime JE's SCS group are working on a plan to maintain continuity of supply to our customers. Any customer that could be affected has been contacted and the inventory, WIP and demand are being managed in detail to try to avoid any interuption in supply.

The customers of our engine iron castings plant in Dayi have all been contacted and will be continually appraised on the outlook to restore operations.

Jim Dick, Senior Vice President

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