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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;2. Unauthorized Activities in Japan&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;As we previously reported, in April&amp;#160;2010, we launched an investigation into unauthorized
   activities in Japan. We learned that an individual working in Molex Japan&amp;#8217;s finance group obtained
   unauthorized loans from third party lenders, that included in at least one instance the attempted
   unauthorized pledge of Molex Japan facilities as security, in Molex Japan&amp;#8217;s name that were used to
   cover losses resulting from unauthorized trading, including margin trading, in Molex Japan&amp;#8217;s name.
   We also learned that the individual misappropriated funds from Molex Japan&amp;#8217;s accounts to cover
   losses from unauthorized trading. The individual admitted to forging documentation in arranging and
   concealing the transactions. We retained outside legal counsel, and they retained forensic
   accountants, to investigate the matter. The investigation has been completed.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;As previously reported in our Annual Report on Form 10-K for the year ended June&amp;#160;30, 2010,
   based on the results of the completed investigation, we recorded for accounting purposes an accrued
   liability for the effect of unauthorized activities pending the resolution of these matters
   including the legal proceedings reported in Note 14.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;We believe these unauthorized activities and related losses occurred from at least as early as
   1988 through 2010, with approximately $167.4&amp;#160;million of losses occurring prior to June&amp;#160;30, 2007.
   The accrued liability for these potential net losses was $178.3&amp;#160;million as of March&amp;#160;31, 2011,
   including $12.5&amp;#160;million in cumulative foreign currency translation, which was recorded as a
   component of other comprehensive income. To the extent we prevail in not having to pay all or any
   portion of the outstanding unauthorized loans, we would recognize a gain in that amount. In
   addition, we have a contingent liability of $24.2&amp;#160;million for other loan-related expenses, interest
   expense and delay damages on the outstanding unauthorized loans.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Cumulative investigative and legal costs through March&amp;#160;31, 2011 were $15.8&amp;#160;million, including
   $11.1&amp;#160;million in the first nine months of fiscal 2011.
   &lt;/div&gt;
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