News Release
Merger of Fuji Electric Group Power Semiconductor Manufacturing Subsidiaries

February 5,2010
Fuji Electric Holdings Co., Ltd.

Fuji Electric Holdings Co., Ltd. (President: Haruo Ito; Headquarters: Shinagawa-ku, Tokyo) announced today that Fuji Electric Systems Co., Ltd. (President: Mitsunori Shirakura; Headquarters: Shinagawa-ku, Tokyo), a company positioned under its core business umbrella, has decided to establish a new company to manufacture power semiconductors as part of corporate restructuring by merging the following three consolidated subsidiaries effective April 1, 2010: Omachi Fuji Co., Ltd. (President: Akira Nagata; Headquarters: Omachi-shi, Nagano Prefecture), Hokuriku Fuji Co., Ltd. (President: Koji Abe; Headquarters: Namerikawa-shi, Toyama Prefecture), and Iiyama Fuji Co., Ltd. (President: Kazuo Fujioka; Headquarters: Iiyama-shi, Nagano Prefecture).

1. Overview of the merger

The Fuji Electric Group considers power supplies and industrial plant engineering as basic segments for its power semiconductor business. At the same time, it is focusing on the automotive field, including hybrid and electric vehicles as well as car electronics, and the new-energy field as priority areas, as the global market is expected to expand in these areas. Accordingly, the Group is working to reform its business portfolio and restructure its global manufacturing system for optimal production.

In this context, the Fuji Electric Group has been reorganizing its post-process production hubs since last year, accelerating its shift to overseas production bases in the Philippines and Malaysia to manufacture semiconductors for the power supplies and industrial plant engineering segments, as a means to reduce costs and manage foreign exchange risks.

This merger of three manufacturing subsidiaries in Japan is intended to speed up management decision-making and create a production system capable of manufacturing a wide-range of high-quality products in limited quantities to promptly meet customers' expectations.

Objectives of the merger:

2. Summary of the merger

3. Overview of companies to be merged

4. Overview of the new company

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The new company name will be promptly announced when it is determined.