Murata to Acquire Crystal Device Manufacturer, Tokyo Denpa

  Murata to Acquire Crystal Device Manufacturer, Tokyo Denpa

Business Wire

KYOTO, Japan -- August 2, 2013

Murata Manufacturing Co., Ltd.(TOKYO:6981) (ISIN:JP3914400001) implemented a
share exchange with Tokyo Denpa Co., Ltd. (TEW) effective August 1, 2013
pursuant to a share exchange agreement executed with TEW on February 13, 2013,
and as a result, Murata became the wholly-owning parent company of TEW, and
TEW became the wholly-owned subsidiary of Murata. As a result of the share
exchange, Murata acquired crystal device products and technologies, and going
forward, Murata will work to expand this product lineup and reinforce the
development, production, and sale of crystal devices.

“I welcome personnel from TEW, a time-honored company, as members of the
Murata group, and look forward to tackling the challenges of the future
together.” Tsuneo Murata, President of Murata said. “We will make every effort
to anticipate client needs, develop products and services that meet those
needs, and maximize customer value.”

Murata and TEW have maintained a long-standing relationship. The two companies
entered into a capital and business alliance agreement in connection with the
crystal device business in 2009, and in 2011 signed a comprehensive
cooperation agreement. Murata and TEW have cooperated in the joint development
and commercialization of HCR, high-precision and low-cost crystal resonators.
The two companies determined that in order to increase their synergy effects
and weather today's challenging economic environment, making TEW a
wholly-owned subsidiary of Murata would be optimal for building the essential
strong business structures that can fully leverage Murata's and TEW's combined
resources including development, manufacturing, sales, marketing, and
management and speed up decision-making.
To substantially increase the corporate value of both companies, three main
business synergies will be pursued:

  *Increasing the production capacity of crystal and other products to
    respond to rapidly increasing demand. Introducing on a major scale
    Murata's manufacturing technologies, supply chain management capabilities,
    and marketing techniques at TEW to strengthen its ability to meet supply
    and demand and, in turn, maximize earnings.
  *Utilizing Murata's sales channels to the fullest extent in the near future
    in order to market and expand sales of TEW's products globally; leveraging
    a wide-ranging product lineup to develop new clients and further expand
    Murata's and TEW's marketing and sales.
  *Creating high-performance and high value-added electronic components by
    strengthening the planning and development proposal structures of TEW for
    key global customers and jointly developing pioneering products that meet
    future customer needs.

[New entities]
Company Name: Tokyo Denpa Co., Ltd.
Registered Head Office: 1-12-18 Omori-Nishi, Ota-ku, Tokyo
Date of Incorporation: May, 1949
Representative: Hideo Sakamoto, President and representative director
Capital Stock: 3,703.6 million yen (as of June 30, 2013)
Details of business: Manufacture and sales of wireless communications
equipment; manufacture and sales of electronic equipment and components;
manufacture and sales of crystal resonators and synthetic crystals;
manufacture and sales of manufacturing equipment including technical support
relating to the above; and all ancillary business
Number of Employees: Approximately 160 (as of June 30, 2013)
URL: http://www.tew.co.jp/en

Company Name: Kitami Tokyo Denpa Co., Ltd.
Registered Head Office: 315-1 Midori, Bihoro-cho, Abashiri-gun, Hokkaido
Date of Incorporation: April, 1974
Representative: Hiroshi Tanaka, President and representative director
Capital Stock: 80 million yen (as of June 30, 2013)
Details of business: Manufacture and sales of crystal elements, crystal
filters, and crystal oscillators; and all ancillary business
Number of Employees: Approximately 200 (as of June 30, 2013)

Company Name: Morioka Tokyo Denpa Co., Ltd.
Registered Head Office: 1-15-10,Kami-iioka, Morioka-shi, Iwate Prefecture
Date of Incorporation: July, 1987
Representative: Makoto Yaguchi, President and representative director
Capital Stock: 80 million yen (as of June 30, 2013)
Details of business: Manufacture and sales of crystal elements, resonators,
and application products; and all ancillary business
Number of Employees: Approximately 300 (as of June 30, 2013)

[Corporate overview of Murata Manufacturing Co., Ltd.]
Murata Manufacturing Co., Ltd.is a worldwide leader in the design,
manufacture and sale of ceramic-based passive electronic components &
solutions, communication modules and power supply modules. With annual
revenues of ¥681 billion (~€5.2B EUR or $6.9B USD), Murata is committed to the
development of advanced electronic materials and leading edge,
multi-functional, high-density modules. The company has employees and
manufacturing facilities throughout theworld.

Contact:

Murata Manufacturing Co., Ltd.
Akiko Fukuda, +81-75-955-6786
Corporate Communications Department
prsec_mmc@murata.co.jp
 
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