December 15, 2006
Taiyo Electric Industry Co., Ltd.

About the Company’s Management and Employee Buyout (MEBO)

  1. Since the company’s foundation in 1954, its superior technical capabilities and product reliability have been earned strong appraisal in manufacturing and sales of the widely accepted automatic registration equipment for printing and equipment control devices.
    In the printing equipment business, the company has retained its position as the No. 1 manufacturer in Japan of automatic control equipment for printing presses since the release in 1958 of Japan’s first automatic registration equipment for gravure printing presses. The company’s businesses have also developed overseas. In the control facilities business, we have manufactured control panels for air conditioners and other equipment, and have dealt with a wide range of customers, including NTT, over many years.
  2. Recently, the company decided to establish a new company with managerial and non-managerial employees taking over the businesses through company acquisition (MEBO*). In this way, the company intends to stabilize the shareholder structure by reconfiguring it into one centered on managerial and non-managerial employees, moving away from the current holding company, Nomura Principal Finance Co., Ltd. The new company aims to enhance corporate value further, with managerial and non-managerial employees engaging in the business with even greater enthusiasm.
  3. The new Taiyo Electric Industry Co., Ltd. will start in February 2007. Although the management structure will partly change, the current businesses will continue as before and the development of new technologies, the release of new products and expansion of the market will progress apace.
  4. For the MEBO, support was offered by the company’s main transaction bank, Joyo Bank Ltd. and the Development Bank of Japan. For configuration of the scheme, negotiations were held with existing shareholders to determine the terms and conditions and the new company was established.

※Management and Employee Buyout (MEBO): a type of merger and acquisition in which the managerial and non-managerial employees jointly acquire the company or business divisions and become independent.

(Reference)

[Outline of the company]
Taiyo Electric Industry Co., Ltd.
Head office: Arakawa-ku, Tokyo
Representative: Hayato Murata
Employees: 79

[Outline of the new company]
Preparatory Company No.1 for Succession of Taiyo Electric Industry Co., Ltd. (Plans to change the name to Taiyo Electric Industry Co., Ltd. after completion of the handover)
Head office: Arakawa-ku, Tokyo
Representative: Hayato Murata