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Fair Labor Association accredits Nike compliance program

BEAVERTON, OR, (12 May, 2005) – The Fair Labor Association (FLA) today announced it has accredited Nike’s workplace program – signifying satisfactory completion of the company’s three-year initial implementation period. This accreditation signifies Nike fulfilled the requirements set forth by the FLA and is in substantial compliance with the FLA’s rigorous workplace code of conduct in contract factories making Nike-branded products.

Nike submitted a Monitoring Plan to the FLA in 2002, electing to have its Nike-branded apparel, equipment and footwear businesses included in the accreditation process during the initial three-year implementation period. The accreditation process represents an independent review of Nike’s internal systems and processes for managing compliance. Over the accreditation period, the FLA monitoring staff reviewed monitoring and verification reports of contract factories conducted by accredited external monitors and verified implementation of monitoring protocols, training programs and audit systems. Results of the FLA’s independent audits of contract factories making Nike-branded products have been included in previous FLA annual reports and will be released in the FLA’s third annual report later this year.

“The assessment is designed to evaluate the degree to which the company has achieved the objectives set in the implementation period,” said Auret van Heerden, FLA President and Chief Executive Officer in a statement issued by the FLA. “In Nike’s review, the Board not only found them to be in compliance, but also noted an exemplary display of leadership in the spirit of corporate responsibility.”

Last month, Nike became the first major company in the global footwear and apparel industries to disclose publicly its contract supplier base. Since joining the FLA, Nike has confidentially provided the full set of contract factories making Nike-branded products to participate in the FLA’s independent and external monitoring process – the results of which have been included in the FLA’s first two annual reports. The FLA will review Nike’s compliance program every two years for re-accreditation.

“Working with the FLA through this accreditation process has been a key learning experience for Nike as we continue to evolve our compliance program and processes to understand better the issues we face in this area and to improve conditions in contract factories,” said Dusty Kidd, Vice President for Compliance, Nike. “We are strong supporters of the FLA and their multi-stakeholder approach to addressing the challenges in the global supply chain.”

Nike is founding member of the Fair Labor Association and is joined by other companies, universities and non-governmental organizations dedicated to promoting adherence to international labor standards and improving working conditions worldwide. For more information on the FLA and its initiatives visit www.fairlabor.org.

About Nike NIKE, Inc., based in Beaverton, Oregon is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly owned Nike subsidiaries include Converse Inc., which designs, markets and distributes athletic footwear, apparel and accessories; Bauer NIKE Hockey Inc., a leading designer and distributor of hockey equipment; Cole Haan, a leading designer and marketer of luxury shoes, handbags, accessories and coats; Hurley International LLC, which designs, markets and distributes action sports and youth lifestyle footwear, apparel and accessories; and Exeter Brands Group LLC, which designs and markets athletic footwear and apparel for the value retail channel.