2012

Mar.23, 2012

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Minebea Co., Ltd.

Notice of a Basic Agreement Regarding Minebea's Share Purchases of Moatech

Minebea Co., Ltd. ("Minebea") hereby announces that on March, 23, 2012, its Board of Directors has reached an agreement with Moatech Co, Ltd. ("Moatech") and its principal shareholders to purchase the majority of shares of Moatech, through the subscription of new shares via third-party allotment, and the purchase of treasury shares and shares held by the principal shareholders of Moatech.

1. Purpose of Share Purchases

With a view toward expanding its small-sized precision motor business, which is one of its major product lines, as well as strengthening the competitiveness of such business in the global market, Minebea has reached an agreement in principal to acquire a majority stake in Moatech, through the subscription of new shares to be issued by Moatech to Minebea via third-party allotment, and the purchase of treasury shares as well as shares owned by Mr. Jong Kwan Lim, Moatech's CEO. Minebea plans to acquire 50.8% stake in Moatech shares, subsequent to going through a variety of approval processes from respective government authorities.

Established in 1989 in Korea, Moatech has its shares listed in KOSDAQ (Korean Securities Dealers Automated Quotations). Moatech retain an affiliate company called Hysonic Co., Ltd, a manufacturer of small-sized precision motors, whose shares are also listed in KOSDAQ. In addition, Moatech has its production facilities located in Korea, China and the Philippines and has established an efficient system stretching from the development and design stages to the manufacturing processes in the small-sized motor businesses, which provides Moatech with a high level of competitiveness in quality, production capability and manufacturing costs. In the segment of stepping motors to be used for IT devices, which is one of its major product lines, Moatech retains a high market share in the global market. The company also strives to expand into the motor businesses to be used for automobiles, office equipments, home electronic appliances, and cameras, in which small-sized precision motors are expected to increase its sales significantly in the years to come. As such, Moatech is expected to secure its place in the global marketplace going forward.

Minebea, on the other hand, is determined to enhance its product development capability, establish streamlined process of manufacturing and sales, and expand its sales of small-sized precision motors, by acting in coordination with and complementing the activities of Moatech, one of the leading Korean manufacturer in this business. Minebea also strives to achieve steady and consistent growth and profitability by way of taking advantage of the market expansion of precision motor businesses including supplies to the automobile markets in which the shift to and proliferation of electric cars (Electronic Vehicles) are widely expected in the near future.

2. Outline of Minebea Co., Ltd.

(1) Name Minebea Co., Ltd.
(2) Location 4106-73, Oaza Miyota, Miyota-machi, Kitasaku-gun, Nagano, Japan
(3) Representative Yoshihisa Kainuma
(4) Established July 1951
(5) Capital JPY68,258 million (Year ended March 31, 2011)
(6) Number of employee 53,827 (consolidated)
(7) Principal business Machined components, rotary components, and electronic devices and components
(8) Major Shareholders
(As of September 30, 2011)
The Master Trust Bank of Japan, Ltd. (trust account) 7.49%
Japan Trustee Services Bank, Ltd. (trust account) 7.03%
The Sumitomo Trust and Banking Co., Ltd. 3.85%
Keiaisha Co., Ltd. 3.76%
Japan Trustee Services Bank, Ltd. (trust account 4) 3.61%
(9) Net assets JPY109,967 million (consolidated, Year ended March 31, 2011)
(10) Total assets JPY291,092 million (consolidated, Year ended March 31, 2011)
(11) Net sale JPY269,139 million (consolidated, Year ended March 31, 2011)
(12) Financial closing March
(13) Relationships with Moatech None on capital relationships, personnel relationships, others

3. Outline of Moatech Co., Ltd.

(1) Name Moatech Co., Ltd.
(2) Location 292 Guwol-Dong, Namdong-gu, Incheon-City, Korea
(3) Representative Jong Kwan Lim (CEO)
(4) Established March 1989
(5) Capital KRW7.2 billion (JPY520 million*) (Year ended December 31, 2011)
(6) Number of employee 5,033 (consolidated)
(7) Principal business Small-sized precision motors for use in the IT devices, automobiles, office equipments, home electronic appliances and cameras
(8) Locations of major production facilities Korea, China, Philippines
(9) % of investment by Minebea (as planned) 50.8%
(10) Relationships with Minebea None on capital relationships, personnel relationships, others
(11) website http://www.moatech.com/Open in a new window

*Exchange Rate: KRW1.00=JPY0.0721

4. Future Outlook

Minebea plans to complete a series of stock purchase transactions as soon as practically possible, subsequent to obtaining required permits and approvals from the respective government authorities. We do not predict any direct impact of these transactions on the consolidated earnings for the fiscal year ending March 31, 2012.

Company Name: Minebea Co., Ltd.
Representative: Yoshihisa Kainuma
Representative Director,
President and Chief Executive Officer
(Code No. 6479, TSE Div. No.1)
Contact: Yasunari Kuwano
General Manager
Corporate Communications Office
Tel: +81-(0)3-5434-8637
Information in the press releases is current on the date of the announcement.
Product information, contact and other context are subject to change without prior notice.

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