Today ON management announced to employees, internally, that the previously mandated 2-weeks of paid vacation in Q1 will be superseded by mandatory unpaid vacation. Employees across the company are being required to take mandatory 2-weeks of unpaid vacation in Q1 of 2009 and mandatory 2-weeks unpaid vacation in Q2 of 2009. Exempt employees are not encouraged to work during this time, but if issues arise at work that require their attention, then they are being asked to come in and take care of business and will be given "compensation time" for doing so.

The mandatory vacation does not have to be taken on consecutive days since doing so would require employees to write checks to the company to cover their medical benefits.

The company maintains that the business is strong and is gaining market segment share at this time.

The move is intended to avoid a force reduction due to the current economic downturn.

This announcement will be made public when the company has constructed a public communication. Employees were notified of this so that they are able to prepare financial arrangements to get through this time.j