Jabil Announces Restructuring Plan

In response to the on-going global economic slowdown and resulting changes in demand requirements from customers, Jabil plans to cut its manufacturing capacity in certain geographies and to shrink its worldwide workforce of 85,000 by approximately 3,000. Jabil said the restructuring will appropriately align its manufacturing sites with the company's current customer demand outlook and increase operational efficiencies. Approximately ten global plant sites will be impacted, and approximately ten percent of the headcount reductions will take place in the United States.

Jabil said that as a result of the restructuring, the company currently expects to realize $55 million in annualized cost savings. The company currently expects to recognize approximately $65 million in pre-tax restructuring and impairment costs over the course of fiscal years 2009 and 2010. The majority of these costs are currently expected to be recorded in the company's operating results for the fiscal quarter ending February 28, 2009. The cash cost of such charges is currently estimated to be $54 million incurred over the course of fiscal years 2009 and 2010.

Restructuring at certain foreign plants is subject to consultation with Jabil employees and their representatives. A significant portion of the restructuring costs will be related to employee benefit and severance arrangements

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