April-16-2008

Construction of a new factory to enhance our comprehensive domestic manufacturing system

In order to further enhance the comprehensive manufacturing system of domestic production bases for the connector division, we have acquired additional land and have decided to build a new plant at JAE Hirosaki.

In order to allow for additional future expansion in the manufacture of high value-added products, over the past several years we have acquired land around the JAE Hirosaki totaling about 30,000 square meters. The planned two-story plant will have a total floor area of 23,600 square meters.

As a result, the land owned by JAE Hirosaki increased by a factor of 1.36, and the floor area of the Hirosaki plant expanded by 1.73.

A total of about eight billion yen has been invested in this strategy to enhance our manufacturing capacity, including general-purpose equipment and facilities specifically designed for manufacturing new products at JAE Hirosaki. The monetary value of the production output in yen will increase by a factor of approximately 1.8.

The new plant will be complete in March 2009, and start commercial operation in April 2009.