Notice about TOB of JRC stocks by Nisshinbo Holdings Inc

To our valued customers,

You may already be aware of the news that Nisshinbo Holdings Inc, who is our major shareholder, executed a Take over Bid (TOB) of JRC stocks. With this bid, Nisshinbo Holdings Inc is planning to raise its stake in JRC to 64.3% from their previous holding of 34.0%.

The purpose of this TOB is to integrate Nisshinbo Holdings Inc groups. and Japan Radio Co Ltd groups in an equal partnership to ensure future development and mutual growth.

Moreover, in the press release of Nisshinbo Holdings Inc, it is clearly stated that they plan “To respect the independent management of our listed company” and “there is no plan to seriously change the overall structure of JRC”

Upon receiving the proposal from Nisshinbo Holdings Inc, JRC examined the proposal, taking into account the various points of view, and after careful deliberation, JRC has decided to agree to the proposal. It is judged that the advantage to us and our customers is great when considering our future development.

More importantly it is felt that:

- It will now become possible to offer the customer a novel product that contributes to the technical development of environmental improvement and energy efficiency.

- The satisfaction of the customer can be further improved by the concentration of effort formed by this powerful new cooperative business partnership.

Because our business is going to continue much as before, this TOB will not influence the relation between our company and you, our customer. Our company will further try to make the best use of this momentous event as a chance to revolutionize and improve our product quality and further enhance our currently offered services.

It is the situation in which a severe economic environment continues. However with the promised cooperation of all members we plan to push onwards with the further development of the business. We therefore hope you will favour us with your continued patronage.

Yours sincerely.

9 November 2010


Yorihisa Suwa