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News Release

March 15, 2010 Fuji Electric Holdings Co., Ltd.

Absorption Merger of Fuji Electric Group Companies

Fuji Electric Holdings Co., Ltd. (hereinafter referred to as “FHC”) announced today that on April 1, 2010, Fuji Electric Matsumoto Mechanics Co., Ltd. will be absorbed by Fuji Electric F-Tech Co., Ltd. (hereinafter referred to as “F-Tech”), which is a wholly owned subsidiary of Fuji Electric Systems Co., Ltd., an operating company of FHC. The Group’s die divisions will also be consolidated in F-Tech, and production facility divisions will be absorbed by the company.
  The objective of the absorption merger is to ensure that production facilities and die technologies crucial for adding value to products are maintained and handed down. Through the transfer of its die technology to F-Tech, the Fuji Electric Group will consolidate its accumulated technology and expertise in this field. Moreover, by exercising the comprehensive strengths of its production facility technologies, the Group will work to accelerate supply-chain innovation, strengthen product competitiveness, and raise productivity.

1. Purpose of the absorption merger
(1) Realize synergy effects by absorbing production facility divisions
  The Fuji Electric Group will enhance its manufacturing techniques overall by bringing together F-Tech's logistics technologies, Fuji Electric Matsumoto Mechanics’ high-precision technologies related to disc media and semiconductors, and both companies' know-how in the same areas of test assessment, automation systems, and image processing.
(2) Strengthen product competitiveness by consolidating die divisions
  The Fuji Electric Group aims to strengthen the competitiveness of its products by consolidating the die technologies and expertise of each of the Group's die divisions, enabling them to mutually take advantage of the facilities and technologies used to produce various Group products.
(3) Strengthen the handing down of technologies and skills
  The Fuji Electric Group intends to improve its ability to hand down its die-related manufacturing technologies and skills by utilizing current and former employees who possess highly advanced techniques and skills, to hand down their know-how and nurture the next generation of employees as well as train young engineers for skills competitions.

2. Method of absorption merger
(1) F-Tech will absorb Fuji Electric Matsumoto Mechanics Co., Ltd.
(2) The Fuji Electric Group’s die technology and engineering divisions will be consolidated in F-Tech.

3. Overview of the company after the absorption merger
(1) Effective date of absorption merger: April 1, 2010
(2) Name: Fuji Electric F-Tech Co., Ltd.
(3) Capital: ¥95 million
(4) Number of employees: 298 (as of April 1, 2010)
(5) Sales: ¥7.4 billion (fiscal 2010 forecast)

Note: Fuji Electric F-Tech Co., Ltd. will become a subsidiary of FHC.


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