This press release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the Safe Harbor protection provided under the Securities Laws. Methode undertakes no duty to update any forward-looking statements to conform the statements to actual results or changes in Methode’s expectations on a quarterly basis or otherwise. The forward-looking statements in this press release involve a number of risks and uncertainties. The factors that could cause actual results to this press release differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports. Such factors may include, without limitation the following; dependence on a small number of large customers within the automotive industry, pricing or prices could affect our automotive customer’s future results. The seasonal and cyclical nature of some of our businesses. The presence of the automotive industry, dependence on the appliance computer and communication industry, intense pricing pressures in the automotive industry, increases in raw material prices and customizes related to conducting global operation. Greeting ladies and gentlemen and welcome to the Methode Electronics Fourth Quarter 2008 Earnings Conference Call. At this time all participants in a listen-only mode. A brief question and answer session will follow the formal presentation. [Operator Instruction]. As a reminder, this conference is being recorded. It is now my pleasure to introduce today your host Mr. Don Duda, President and Chief Executive Officer. Thank you Mr. Duda you may begin.

Thank you, Melissa, good morning everyone thank you for joining us today for our fourth quarter and 2008 fiscal year end financial results conference call. Doug Koman, Chief Financial Officer and Ron Tsoumas, Metals Controller joining me today. Also with us is Joey Iske, Director of Investor Relations Director of investor relations. Both Doug and I have comments, and afterwards we will be pleased to take your questions. Methode completed this fourth quarter with sales of a $154.4 million and net income of a 12.9 million or $0.35 per share. This compare to last year fourth quarter results of a 130.9 million in sales and net income of 12.1 million or $0.34 per share. For the full year Methode passes significant milestone. For the first time in the company’s 62 year history sales top the $0.5 billion mark. We congratulate all of Methode employees on this accomplishment. Methode completed fiscal 2008 with sales of 551.1million and net income of 39.8 or a $1.07 per share. This compares to fiscal 2007 results of 448.4 million in sales and net income of 26.1 million or $0.72 per share. Doug will provide a more detail discussion of the quarter and full year financial later in this call. At this point, I would like to move forward to discuss our business. First let me discuss the automotive segment. Methode spent the past few years repositioning itself from the automotive world. Only few years ago Methode was almost exclusively doing business with Chrysler and Ford primarily shipping product from US factories. Even our European automotive group was shipping a good portion of their product back to the US. As it became evidence that Methode traditional customers were facing turbulent time, we begin to focus our efforts on cost reductions, initiatives, global expansion and new product…

Thank you, Doug. Melissa, we are ready to take questions.

Thank you. (Operators Instruction). Our first question comes from Jeremy Holmen from Singular Research please proceed with your question.

Hi good morning guys.

Good morning.

I know you not in the business of offering guidance, but I just wanted to speak maybe in general terms about the next couple of years and to make sure I am kind of following things particularly in the order segment. I wonder how much I believe in May we were talking about beyond a worldwide GM platform beginning in 2011 that was expected to lend 18 million or so in that year, and also some new switch in Sensor businesses in 2010. Am I right? And looking at the order revenues in that, this year you had 20, I believe it was 20.7 million in, in I guess non-recurring type revenues so to speak related to the price we’re reprising that that will disappear next year right?

Yeah we expect that to out of that Chrysler business at the end of fiscal `09.

Okay. And I don’t know how you might was talking about auto, it was in the quarter being down 3.1% without that price or effect and you started the American actual strike. If you would take the actual strike effect down of that would that have left you in the neighborhood of flat?

Potentially.

What I am getting that is, are you overall seeing the overseas positive kind of counter balancing the North American negative right now in the grand, thanks?

You are probably not going to allow my answer but that is, or that is the very reason that’s we are not giving guidance because over the turmoil we are seeing was a three its becoming somewhat difficult to predict what their buying are going to be.

Sure.

And but I can tell you in past we offer both of that growth in Asia that and in Europe would offset that. A going forward it is difficult to predict whether it will or it won't. We had, in past year we had the positive swings but it is very difficult to predict what we are going to see particularly this year. You know, lot of sales used to relatively predictable only on give or take now the 0.5 million units in the year and if not that very much.

Sure. Yeah I can certainly advertise where you are with that and hold fresh ability to give guidance. Looking at inner-connect and ten power and moving through 2009-2010 yeah, what are your kind general directional expectations for those businesses in terms of revenues?

We’re then please with our power segment, they’ve grown organically it have one program at the end of this year, their technology wasn't used on replacement business and that was a major reduction for them, but they also started other business to replace that, and they have the another customers that can source them and we chose not to try to maintain the businesses by reducing the margin, but that didn't make sense to us. So they have gone through that, they’ve got a new business and their entry into Europe has been excellent garnering customers that I think generally are difficult to get down of the event maybe used and note that we can feel more comfortable opening a plant in Northern Africa which I should point out will give our products very much a global footprint much make round that they can produce in the US from Mil Aero and more sensitive security program like Wilson in Europe and like Wilson in China. So the expectations are the need is moving in right direction there. Interconnect Sensor is even now we purchase TouchSensor from European company there were actually have been pretty little business in Europe something around $1 million in sales is that. So that’s really untapped a territory for them, they have recruited a strong German based Manager form from the appliance industry, they are well positioned to penetrate, so I guess in – with the caveat but the new housing territory or down and the plant industry is from the lot pressure and that needle we think would be in the correct direction, but we have to see what happens in appliance in the defense quickly they can make investment in the year, but its probably important plan out of their product, it can be manufactured in automotive facility. So but its necessary in Europe we can have production quite quickly.

Okay, and looking at a point I saw Electrolux reporting this morning and there is geographically some disparity and what they had to say, what’s the general feedback that you got from Electrolux on in -- the way touch technology, in the way this line of products?

They had a good launch and there the –at least to our knowledge the first company that really launched the whole suite of product they have launch, I think that’s helping they, but they are feeling no doubt the affect to the down turning the appliance industry they’re off I guess on our projections slightly but not lowly off, but they’re certainly effective out there.

What – I don’t know if this kind of asking for something that you really on that we can discuss, but -- over the next year to what goals if you will – do you have in terms of getting on other platforms or higher end points such as such Bolster or companies of that source?

That’s exactly the reason we’re expanding in the Europe, that’s – if we look at European appliances they’re all fairly compact given the size of the European kitchen and the real technology from the company. So we are very much focus on that market. Now, it is somewhat like auto, it take you probably 18 months to get on the platform, and they’re probably less than auto but its not a – they don’t book it this month and ship it next month.

Right, it would sound to me that if you were to get on two or three platforms this year that would probably viewed as very good.

Oh yes, and we are quite pleased, and it depends on the customer too. At last it would be very nice win for us.

Okay, one last wonder and then I will jump back, on Methode India, is that going to be within on order segment and just to make sure I called it you correctly that you guys have given a lot of information, I am just trying to keep it on those. That’s basically in engineering businesses I understand that – so I would suspect as the higher margin labor billing hour type business, am I right about that?

I think its twofold, the Indian automotive is something we feel that we want to make in routes two way, we certainly have a desirable products for the marketplace so that is non initiative there, but the prime initiative is to provide Methode companies worldwide were with low cost, affordable engineering services as we pursue additional customer, additional programs, but all the respect to American and European engineers at 100-K plus that limits your ability to pursue certain program so while tapping into India which is in the national sorts of talent and quite affordable that allows us to expand product, to develop new product it’s probably the quicker pace we will be able to do in the past. Methode has done an excellent job of leading out its factories and really looking at cost of manufacturing, but when we look at the cost of launch at either a GM program or a non-auto program, the engineering expenses are quite hefty and you have to put all the engineering expense in the front, so you are in the red from the beginning until you are launching the product. So the focus India’s twofold but we are very excited about having that expertise available to our companies and the gentlemen that there knows that was extremely well, that was Methode quite sometime and able to fine job of servicing his the Methode, his Methode customers are quite well.

Okay.

Which is the major initiative for us, its kind of last leg of what we have done, just try to be able to more competitive and require more business.

Okay, thanks I will jump up.

Thank you.

Thank you. Our next question comes from Mr. David Leiker with Robert W. Baird. Please proceed with your question.

Hi this is David (Inaudible) for David. Let me jump back on pricing, it seems like you had a pretty substantial up tick sequentially, is there anything – do you have another pricing increase initial line that was going on the?

Yeah David, what happen is you know initially when we start up this process we thought that threshold is going to be out by the end of the fiscal year, when they missed their deadlines we negotiated the new pricing with them and so that is covered by purchase orders. So the pricing in that fourth quarter was higher because of that, they’ve been delayed in getting their product out of our facilities.

Okay, is there in the past you think that continues to the second quarter and next year, is that still the thinking?

No we I don’t know that we have necessarily commented on that, but I mean, they are giving us the new deadlines, but they have missed deadlines before, so we hope we expect them to be go on what we are seeing now as by the end of our fiscal year. We -- might that be operator they might, but we -- that’s up to them.

And your pricing basis on that year?

To what level we can tell you?

I may have thought this last quarter; they have made progress on their move. So we anticipate that will conclude their exit – the schedule shows by the end of the calendar year, but it you know again like they missed before and I don’t think we would go back, I shouldn’t say we wouldn’t but I don’t know there is additional price increases we just buy on that we did anticipate as they transfer the business and they’ve got other issues they’re dealing with but they have moving products of Methodes.

Okay, out of business how much of that is coming back in North American versus being in Asia?

I want to give you a exact percentage as I will recall, but it is a significant portion that comes back to the US.

It would – more than half?

Oh, yes, yes.

Okay. I need restructuring action, it sounds like you’re going to be done with that in third quarter 2009. When do you think that show-off in your, I was wondering if you (Inaudible)?

The – when we complete that restructuring some of that depends on when Chrysler finally removes their project because that slows down that process. But I thin we are starting to see the benefit of some of that currently.

Okay, that made (Inaudible).

Yeah, it – but it will increase as we are able to get product out of our facilities.

Okay. I mean my view what kind of header you guys thinking about for next year, I was wondering?

I am sorry.

On higher commodity prices and you’ve mentioned that is one of things that you expect to reduce margins next year, I mean, any kind of numbers around that?

No, getting to little bit in the guidance, I think we said it is something that we anticipate being an issue.

Right.

I didn’t.

Okay, do you any hedging programs that are developed?

We’re looking at that hedging opportunities but again its nothing that we have currently in place.

Looking at the interconnect business its been running pretty close as breakeven for a while, do you think the restructuring, do you think restructuring happen to taking there, are you going to, going that back to the 10% margin range if they’re running that is that?

That is really our intent, the interconnect as you said has been running flat in generating revenues but not up to the bottom line. The PC card business was a good running business on product line, but the PC card that go into laptops now you are seeing that significantly reduced and pay of review is the of waste product so its time to exit that business and we had some growth from that last year, but really having (Inaudible) so we are making necessary adjustments there, we have been along with our auto restructuring, we talk about an interconnect restructuring and that’s gear to solving that issues that, we have certainly lot of diversifying Methode, we have been, I think we have been successful in the power product group, sometimes their acquisition was a good acquisition in Interconnect but we struggle from other areas and we are making those adjustments and they will see the benefit of that as we move forward..

How much of the margin decline in that segment has been PC card versus kind of legacy connector business?

I don’t know, I don’t know if we quantify that for you David but I was a, I mean, they were about breakeven as the gross margin level, and then...

Which one of breakeven?

Yeah, the gross margins that they do products, yeah. And so, and then they had their overhead in selling and administrative in top of that. So that was – they were just very disappointing this year, so they makeup a good portion of that.

Let’s really say a good portion of that is the issue there.

Okay, you talk about acquisition being a big focus here on '09 any particular areas you’re focusing on?

I don’t know what I want to comment on that?

Profitable and accretive.

And probably not something out of the trade. So I know, I think we appropriate to go any further than that as they said – as the key focus for us and we think there is going to be some real opportunities out there..

Is there non-auto or…

I wouldn’t rollout on auto acquisition but our focuses has been on the non-auto. But again the profitable acquisition and maybe sensors are something like that we certainly wouldn’t roll that out?

Okay, what do you guys thinking about the taxes going forward, you have been running below 20% per line is that you can expect to continue?

Yeah, we should probably be in the very low 20s again unless we do something with an acquisition that moves that number around but just where we are today where low 20s is probably an expected translate.

Okay and anything I am CapEx, any depreciation for ’09?

I would expect at to be comparable that we give this past year.

CapEx?

And again that includes as Don mentioned where we are moving into Northern Africa. So as capital spending related to net.

Okay great thank.

Thank you.

Thank you, our next question from Bryan Crawford with Parameter Capital Management. Please proceed with your question.

Hey good morning gentlemen.

Good morning Bryan.

You know most of my questions got answered with the last calling, but one –could you talk maybe just a little bit more about the interconnect business, I know its been breakeven, I know the PC card business has being challenging for you. What are you looking for towards interconnect business to drive profits in such going forward?

Okay. Historically the TouchSensor out of that for a moment, interconnect has been our component driven business. And over the past several years those components have received tremendous pricing pressures from China and really other markets as well. And we have began the process of the transitioning that away from fewer interconnect more into user interface, higher subsystem or systems such as what TouchSensor offer. So you will see our efforts in that area more on lines of user interface where we are putting may be a complete user interface such as what TouchSensor does for its appliance customers that will having interconnect that will have maybe a power devices on it, but essentially going up the value pyramid. And its not a matter of simply restructuring the interconnect we are in the process of rebuilding that along those line and so we know we are exiting for the most parts of PC cards business, we are maintaining some of the business we have for set top devices as pretty good volume there and then for the next couple of years we will maintain that but –the fix that really is that it relies product offering and that unlike what we have done in auto in that in that many of the legacy products in auto were essentially commodities that could be bought from any number of people, we’ve been very pleased in Europe that lot of those now are technical based products that don’t have IP projection and they command a higher price in the market.

You have mentioned in terms of user interface both in the automotive and the appliance world is there other applications?

We believe there are. And what TouchSensor are brought to Methode is minimally have a little higher SG&A and some of the other companies. They operate much different level dealing with the designers and not so much from a purchasing standpoint, a lot of repurchasing involved, but they are customizing the human machine interface if you will. Much like we are deciding to do in auto and that we’re doing sensor stacks got infotainment systems that we’re dealing that using the TouchSensor technology where, I won’t where the experts enter, but where the people that are the acknowledgeable bringing that expertise to the customers to –and how should this particular device interact with the passenger or with the consumer. We believe there is allover opportunities not just in auto and appliances; there is certainly opportunities in medical for a company that have a good command of HMI and the manufacturing capabilities to produce the worldwide as competitive prices. So there is a – you will see us moving that direction, we target acquisitions in that area though. So it brings together a lot of Methode Technology a lot interface has have sensor. So the ability to provide not only the interface, but also going the sensing the interface is controlling is also fairly strategic for us, you will see the interconnect group moving in that direction

Yeah, I mean, its just at a very, very high level you would – it sounds like things have turned it you know, on the power segment you guys feel pretty good about your position from the new customers, some of the new things that you’re doing there, it sounds like automotive you just don’t know next 12 months. Interconnect 20 more positive, don’t know, negative just trying to get your high level of that deal..

Why, you said that the needle on power is probably in the right direction, TouchSensor I think we feel the same way about are probably a little tougher in the US, but there is a penetrating Europe. And interconnect, if we didn’t do anything I would say the needles are in the wrong direction, but we are taking the right steps and so that, it should trend where we want to it be and its again the key focus for us because we’re going to at least see there is a market developing for interface type products. But where we can integrate a number of Methode components and technology. So the needle is probably a little further, probably a little smaller needle, so that’s why until we get a couple of more things and interconnect number of balance. I don’t know if that answers your question probably best I can give at the moment.

It helps that adds a some color. The final question I had is just in automotive how exposed are you to the SUD, I am sure you get this question SUD small truck, you know, obviously those platforms and products are in trouble for at least a little while anyway. Any sense core you exposure there?

With our exit of price our exposure was significant we l reduce there which is one of the reason that we felt that appropriate that we think exit that business. Our afford is a bit of a midback, good card business in Europe, more truck in US, although we have made the correct adjustment by moving that to Mexico. GM, the new programs for GM are more passenger cars but we do have in our business in Asia for GM is going to GM, GM 800 in which portion of it so that’s dealing the – that’s about 15, maybe 12 million of sales or something like that, but its not a $100 million product. I have been more consent if the business that we have 114 were SUD base, but as I mentioned the small vehicle platform is master card. So we have a mix bag but I think Methode realize that it needed the noble rate from particularly the appropriate step but really some years ago.

Okay, great. Thank you gentlemen.

Thank you.

Thank you. Our next question comes from Mr. Tom Fogarty of Silverstone Capital Management. Please proceed with your question.

Hi, good afternoon.

Hi Tom.

Hi. I just had a quick question about working capital you guys did a very good job straining the growth net this year, I am just wondering whether there are opportunity to actually squeeze some cash out of that next year to believe sales be down?

Yeah, usually that’s what happens when sales do and we decline that there, we do expect that we’re seeing improvement in our working capital because of that.

In terms of days, do you think these really improve that further?

Yeah, I mean on DSO it’s interesting because as we move more of our business to outside the US the terms generally are a little bit longer. We find out that when we were doing the due diligence on our TouchSensor acquisition that also applies us a little bit longer as far as DSO than auto, and build that into the model. But, yes I think we might see a link of DSO going forward just exactly this year.

Okay.

And there is anything opportunities for us is inventory is to a degree that we can reduce our inventory and that’s really back to or lean initiative that would have done an okay job and its do a better job and that is an opportunity for us, but that’s not something new, we will get that, we ask to review we discussed inventory, but its an area that, that’s a squash, we can do that, but that will give us a a throw.

That's a little bit difficult, that is not, I mean, as your supply chain is getting longer, as you move around the world?

Yes, I feel there is a learning logistics.

Yeah.

Producing an Illinois shipping to Detroit into difficult and now you are buying from a multiple point somewhere in the world assembling different locations its challenging. And I think the quick solution that people look at what we have to increase inventory well that’s not the best solution, we have figure out and you do both, and I thing that will down the right track to do that, its just – its got a ways to go, but it’s an opportunity, its certainly, you know, we’ve gotten well in auto and for instances our ASD group and Mexico six, seven days of inventory. So we know we can do it, its doing an opportunity.

Great thanks.

Thank you.

Thank you. Our next question comes from the Mr. Jeremy Holmen with Singular Research. Please proceed with your with your question.

Hey, back to the discussion on medical devices if I could? Just that’s -- the medical device industry not being something I am super familiar with, if I look at if I look at the major companies like Siemens, GE, Philips and companies like, is the switch and sensor technology that’s used in their devices be at MRI's or head scan and things like that, are those enough technologies they used or they typically licensed from other parties?

That’s a bit of mix bag. We are enrolled in the medical thus far have been through power products on MRI machines. The user inferences I don’t know that – and they are probably a mix bag as well I don’t know what some of the big guys are doing what. But, our interest in medical for user interfaces is really more when you look at devices that might be in the ER, where the some of the technology that we bring to market might help prevail a logical interface. There are some FDA regulations on user basis becoming more I don’t think regulated but more of the topic so those are the areas where you target a device manufacture that really doesn’t have the user interface they have the great, they have the technology, they have the scientist and so on, but those accounts that go outside for is that what we wanted to target and we think that we would have to at least acquire some sort of aftermarket in medical, I don’t think that’s something that we have smaller group together and we go penetrate the medical market and that’s one of our acquisitions target needs to be that has to market getting in front of the customers is difficult.

There is any particular path appear more easier challenging than the next a robotic surgical or anesthesiology? I mean you can kind of blend down a whole number or there any that kind of seem to be the lowest hanging fruit?

I don’t know but I can answer that yet, and there is an area that we are having studies done on, and I think the initial read from the studies is that there is a market there to play in, but then the next step is looking at what the best way to get into that market and we are literally looking at that for that now.

Okay and back to auto, and just little reminder for me personally what – what sort of presence if any do you guys have in South America and the reason I asked is in recent news with Toyota looking to open up a facility down I think it was 2011 you wanted to see if you have a presence down there and if you don’t it kind with the game playing if any is over the long term. I am sure I am going to get a call from a marketing sale if you said that.

We do not have adventure down there, and at the moment we don’t have plans for it. India was our focus and I think we will stay with that for a while. It’s a market we mannered, but it can only pride of so many fronts and I think we want to remain focus on what we’re doing in India and in Japan and Asia.

Alright.

Our key areas first. I wouldn’t rule it out may be there is an acquisition that comes up like there is a joint venture opportunity, but that has not been part of our strategic discussion recently made.

And are you –I am sorry –are your probably doing business with into what extend?

Very little bit. .

Okay. And we would see the logical thing to be it would be if you work to get design into whatever platform there might be in producing down there have anything you will get not along that would be one path..

I will certainly help, like we went into China and developed the facility there knowing we have the GM business that would always probably have been one of the reasons of North Africa for power as you go in with at least some backlog that help to cover lays that all.

Okay great, thanks guys.

Thank you.

Ladies and Gentlemen, there are no further questions at this time. I will now like to turn this call over to management for closing comment.

Alright, Melissa, thank you very much. We will thank everyone for listening and have good day and good weekend. Thank you.

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