OKI Data Corporation to Acquire Production Line from Renesas Technology for LED Production

TOKYO--(BUSINESS WIRE)--OKI Data Corporation and Renesas Technology Corp. today announced the conclusion of a basic agreement under which OKI Digital Imaging Corporation (ODI) will acquire the land, buildings, and utilities of the former semiconductor front-end process line (Takasaki, Gunma Prefecture) of the Gunma Development Design and Device Division of Renesas Eastern Japan Semiconductor, Inc.

OKI Data’s medium-term business plan adopted in FY2008 calls for a doubling of the current level of LED printer sales by FY2011, and to accomplish this, the company must increase the scale of its LED production operations. ODI is an OKI Data subsidiary that develops and manufactures print heads for LED printers. Development and LED front-end process production work currently take place at ODI’s Hachioji facility. These operations will be transferred to the new facility acquired from Renesas, which will go on-line in its new capacity in April, 2010.

The clean room at the new facility covers approximately twice the area of the clean room presently in use and is built to a high-level degree of cleanliness. Boosting production line efficiency, it is expected that production capacity will be increased fourfold. This provides additional room for expanding production in response to future business growth. The new plant is also situated near OKI Data’s Takasaki facility, where printer development work takes place. The anticipated shortening in product development time due to this close proximity was a key factor in the decision to make the acquisition.

Renesas is now working to optimize its production structure. As part of this process, the former semiconductor front-end process line of the Gunma Development Design and Device Division of Renesas Eastern Japan Semiconductor was closed in October 2007, due to its limited production capacity. The semiconductor manufacturing equipment had already been removed from the plant, and plans were underway to revitalize it as a clean room facility by transferring it to a new owner. The present transfer was decided upon after a suitable offer was made by OKI Data. Renesas will continue to move steadily toward the completion of currently planned measures on its production structure, with the aim of further boosting production efficiency.

OKI Data and Renesas plan to complete the transfer procedure by November 30, 2009.

Overview of the property for transfer

Name:

the former semiconductor front-end process line of the Gunma Development Design and Device Division of Renesas Eastern Japan Semiconductor, Inc.

Address:

1-1 Nishiyokote-machi, Takasaki, Gunma Prefecture, Japan

Transferred property:

Building; 9,043 m2 (Renesas’ property including clean room floor of 2,760 m2), land; 3,521 m2 (Renesas’ property), utilities (Renesas Eastern Japan Semiconductor’s property)

• OKI Printing Solutions is a brand name of OKI Data Corporation.
• OKI Data Corporation is known as OKI Data for short.
• Other company names or product names mentioned are trademarks or registered trademarks of their respective owners.

Additional Information for Reference

<Overview of OKI Data Corporation>
Company name: Oki Data Corporation
Address: 4-11-22 Shibaura, Minato-ku, Tokyo
Representative: Harushige Sugimoto, President and CEO
Established: 1994
Paid-in capital: ¥17.0 billion
Stockholders: Wholly owned subsidiary of Oki Electric Industry Co., Ltd.
Employees: 5,447 (consolidated)
FY2008 sales: ¥161.6 billion (consolidated)
Business activities: Printer and copier businesses across 120 countries worldwide

<Overview of OKI Digital Imaging>
Company name: Oki Digital Imaging Corporation
Address: 550-1 Higashiasakawa-machi, Hachioji, Tokyo
Representative: Hiroshi Kikuchi, President
Established: 1999
Paid-in capital: ¥100 million
Stockholders: Wholly owned subsidiary of Oki Data Corporation
Employees: 98
Business activities: Development, manufacture, and sale of LED chips, LED units, and LED heads, which are core components of printers and fax machines

<Overview of Renesas Technology>
Company name: Renesas Technology Corp.
Address: Nippon Bldg., 2-6-2, Ote-machi, Chiyoda-ku, Tokyo
Representative: Katsuhiro Tsukamoto, Chairman
Established: 2003
Paid-in capital: ¥77.0 billion
Stockholders: Hitachi, Ltd. 55%, Mitsubishi Electric Corporation 45%
Employees: 25,000 (consolidated)
FY2008 sales: ¥702.7 billion (consolidated)
Business activities: Development, manufacture, and sale of semiconductor devices

<Overview of Renesas Eastern Japan Semiconductor>
Company name: Renesas Eastern Japan Semiconductor, Inc.
Address: 6-5-1 Nishishinjuku, Shinjuku-ku, Tokyo
Representative: Yukio Murayama, President
Established: 2002
Paid-in capital: ¥2.06 billion
Stockholders: Wholly owned subsidiary of Renesas Technology Corp.
Employees: 2,400 (consolidated)
Business activities: Development, manufacture, and sale of semiconductor devices; manufacture and sale of semiconductor manufacturing equipment

About OKI Data Corporation

OKI Data Corporation, which markets its products under the OKI Printing Solutions brand, specializes in designing, developing, manufacturing and marketing business printing solutions which empower organizations to communicate more effectively. As a market leader in the global color printer market, OKI Printing Solutions has representation in 120 countries worldwide offering innovative and leading edge products and services. Its annual turnover for FY07 is 187.9 billion yen and sales are divided between 54% EMEA, 22% Americas, 18% Asia and Oceania and 6% Others. OKI Printing Solutions is the brand name of OKI Data Corporation, a subsidiary of Tokyo-based Oki Electric Industry Co. Ltd., established in 1881 and Japan’s first telecommunications manufacturer. For more information, please visit http://www.okiprintingsolutions.com

About Renesas Technology Corp.

Renesas Technology Corp. is the world's No.1 supplier of microcontrollers and one of the world's leading semiconductor system solutions providers for mobile, automotive and PC/AV (Audio Visual) markets. It is also a leading provider of Power MOSFETs, Smart Card microcontrollers, RF-ICs, High Power Amplifiers, Mixed Signal ICs, System-on-Chip (SoC), System-in-Package (SiP) and more. Established in 2003 as a joint venture between Hitachi, Ltd. (TOKYO:6501) (NYSE:HIT) and Mitsubishi Electric Corporation (TOKYO:6503), Renesas Technology achieved consolidated revenue of 702.7 billion JPY in FY2008 (end of March 2009). Renesas Technology is based in Tokyo, Japan and has a global network of manufacturing, design and sales operations in 16 countries with 25,000 employees worldwide. For further information, please visit http://www.renesas.com

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