Major Restructuring in Europe

Volex Group PLC
7 January 2002


               Volex Group p.l.c. ('the Company')

Major Restructuring of Operations in Europe

As  indicated in its trading statement on 19 December 2001, Volex
Group  p.l.c.,  the  world's  leading  independent  producer   of
electronic cable assemblies and electrical power cords, announces
it  has  taken  a  major  initiative to streamline  its  European
operations and at the same time further reduce its cost base.

In  line  with  the changing structure of the Group's  world-wide
markets for its infocom and power cord products, particularly the
growing  presence  of  multinational  CEMs  (contract  electronic
manufacturers), Volex intends to merge its European based infocom
and power cord assembly operations.  This brings Volex's European
structure in line with that already existing in the Americas  and
Asia.

This  new European organisation will be headquartered in  Ireland
and   will  include  the  Group's  UK  powercord  operations  and
satellite  manufacturing plants in Sweden, Estonia  and  Croatia.
The  establishment  of  this  new structure  will  involve  major
reorganisation of the Group's existing plants in Leigh,  England,
and   Castlebar,  Ireland.   Overall  the  numbers  of  employees
throughout Europe in this business area is expected to be reduced
by  some 50% to approximately 450: of this approximately 50% will
be  located  in Ireland, 30% in Eastern Europe with  the  balance
being  in  the U.K. and Sweden.  In addition, certain  production
will  be  transferred to the Group's plants in Asia, so absorbing
capacity  available in that region and taking advantage of  lower
unit  costs.  This reorganisation does not affect the Group's  UK
harness businesses.

The  new European organisation enables Volex to offer a 'one stop
shop'  to its customers in the region for both infocom and  power
cord  cable  assemblies.  It is also right sized against  today's
demand  levels and achieves a lower cost base by taking advantage
of economies of scale.

This  fundamental reorganisation will cost approximately £6m,  of
which  some  £4.5m  will be in cash, and will be  charged  as  an
exceptional  item  in the 2001/2002 accounts:  the  benefits  are
anticipated to bring cost reductions in a full year of some £3.5m
before  tax.  Once completed the Group's operating profit margins
will  return  to more satisfactory levels against today's  market
demand and this reorganisation positions the Group to take fuller
advantage   of   the   changing  global   market   opportunities,
particularly with the emerging CEMs.

The  Group  will  consult with those employees and  trade  unions
affected   by  these  changes  and  it  is  envisaged  that   the
reorganisation  will be completed largely by  the  end  of  March
2002.

For further information, please contact:
Volex Group p.l.c.                                    01925 830101

Dom Molloy, Group Chief Executive
Ken Hooper, Group Finance Director

Weber Shandwick Square Mile                          020 7950 2800
Chris Lynch / Graham Herring