Nike has completed its initial investigation into claims of unacceptable living conditions, withholding of worker passports and garnishing of wages at Hytex, a Malaysian contract factory. Our investigation confirms serious breaches of Nike's Code of Conduct at the Hytex Factory.

Nike takes these issues very seriously and is taking immediate action to protect the rights of workers in its Malaysian supply chain. We are committed to comprehensively addressing the issues identified at Hytex and to continued follow-up to help ensure changes are lasting.

Nike has taken decisive action and has required Hytex to make the following non-negotiable and immediate changes:

1. All current migrant workers will be reimbursed for fees associated with employment including but not limited to recruiting fees paid to agents and worker permit fees.

2. Going forward, any and all fees associated with employment will be paid by the factory as a cost of doing business.

3. Any worker who wishes to return home will be provided with return airfare, irrespective of their contract requirements.

4. The majority of housing has been found to be unacceptable. All workers will be transitioned into new Nike-inspected and approved housing within 30 days. This transition has already begun.

5. All workers will have immediate and total free access to their passports. No restrictions.

6. Workers will have access to a 24-hour Nike hotline should they be denied access to their passports by factory management. All claims will be promptly investigated.

Communication to the workers of these changes will be delivered verbally as well as posted in all communal areas in all appropriate languages.

In the next 10 days, Nike will review its entire Malaysian contract factory base and require factories to institute these same policies.

Nike Inc