Worker-management communication

In response to the article "Shoe factory workers demand ouster of divisional heads" dated Monday, Dec. 28, 1998, Nike would like to clarify the issues raised by The Jakarta Post.

Nike and our manufacturing partners take all worker concerns very seriously and do our best to resolve all issues as quickly as possible and to the satisfaction of all concerned.

With regard to meal allowances, PT Doson had already decided to increase the meal allowance from Rp 1000 per worker per day to Rp 1,700 per worker per day, starting Nov. 1, 1998. Due to a miscommunication, the increase did not take place on that date. On discovering the miscommunication, PT Doson has already ensured that at the end of this month all workers will be reimbursed in cash for the value of the November and December additional allowance.

Having further consulted with the workers, PT Doson Indonesia senior management are currently reviewing the workers' request to improve the worker-management communications team. The results of the review will be acted on as appropriate.

Nike is confident that the Doson management team will continue to improve its worker-management communications system.

HARSH SAINI

Nike Corporate Responsibility

Asia-Pacific

Jakarta