Transfer of semiconductor sealer business and establishment of a new company

February 08, 2001

Sumitomo Heavy Industries, Ltd (President: Yoshiro Hinoh) and NEC Corporation (President: Koji Nishigaki) have reached a basic agreement whereby NEC and its affiliate NEC Laser Automation Corporation (NELA) will transfer its semiconductor sealer business rights to Sumitomo Heavy Industries. The two companies are currently in negotiations for concluding a business rights transfer contract, expected at the end of March this year.

As part of a business structural conversion, Sumitomo Heavy Industries has been working to enhance its semiconductor manufacturing machines. On the basis of the current business transfer from NEC, Sumitomo Heavy Industries has decided to further strengthen its post-processing of semiconductor manufacturing machines by establishing a new company. The new company will be called Sinex K.K. (provisional name), and its inauguration is scheduled for the end of March this year. The outline of the new company will be:

1. Target business activities
The manufacture, sales and servicing of semiconductor sealers and metal molding.

2. New company outline
(1) Name: Sinex K.K. (provisional name)
(2) Establishment: Scheduled for the end of March 2001 (Scheduled commencement of business operations: 1 June)
(3) Capital: \300 million (Financed 100% by Sumitomo Heavy Industries)
(4) Business base: For one year after sales commencement the company will lease part of the NELA Tsukui business office (Kanagawa Prefecture). About one year after sales commencement the business will move to the Sumitomo Heavy Industries Yokosuka Works.
(5) Business activities: The manufacture, sales and servicing of sealers and metal molding.
(6) Business plan: Sales in the first year of about \3 billion.

By acquiring the business rights of the semiconductor sealer from NEC and establishing a new company, Sumitomo Heavy Industries will strengthen its semiconductor machine business. As a semiconductor post-processing machine solution provider, it is scheduled to increase its business after a few years to \10 billion per annum. NEC is pushing ahead to reorganize its group of companies in order to maximize the value of the NEC Group. The current business transfer is based on the judgment that different business developments to the semiconductor sealer are possible in conjunction with the business expansion policy of Sumitomo Heavy Industries in the same field.

Outline of NEC Laser Automation (NELA) K.K.
(1) Head office and plant address: Tsukuimachi, Tsukui-gun, Kanagawa Prefecture
(2) Capital: \2.67 billion (Stocks held 100% by NEC)
(3) Sales items: Manufacturing and servicing of laser processors
The manufacture, sales and servicing of semiconductor sealers and metal molding