September 21, 2005 Maxell Announces Group Streamlining, Reinforcement of Next Keystone (New Business) Business Hitachi Maxell Ltd. has announced plans to transfer management of the RFID systems business to Group company Maxell Seiki, Ltd.(Maxell Seiki), along with plans to merge Maxell Electronics (Malaysia) Sdn. Bhd.(Maxell Malaysia) with Tohshin Precision (Malaysia) Sdn. Bhd.(Tohshin Malaysia), a subsidiary of Tohshin Seiko Co., Ltd.(Tohshin Seiko), a Group company that manufactures optical components. These measures have been introduced to further focus the Group’s resources, and strengthen the Next Keystone business - new business the Group is developing - by utilizing the core technologies of each member (design, development, and manufacturing capabilities), and increasing competitiveness. I. Streamlining ID-related business through transfer of authority for RFID systems business to Maxell Seiki Maxell started its RFID systems business in 2001. Utilizing its ability to design and develop “coil on chip” systems, in which an antenna is formed directly on a chip, Maxell has striven for business growth through the adoption of such systems in the amusement and security fields. Maxell Seiki has been developing its IC card business since 1984, and has a plant exclusively for manufacturing IC cards for use in high-level security management systems. To date, in addition to IC cards containing RFID chips, Maxell Seiki has commercially developed cash cards, ETC cards, resident’s cards, and credit cards. As of October 1, 2005, the RFID systems business will be transferred to Maxell Seiki, and the resources of each company, such as engineering, development, and sales capabilities, will be streamlined into an ID-related business (including IC cards, reader-writers, and applied equipment). Through this means, Maxell aims to expand its business in the identification field, where further growth in demand is expected. II. Reinforcement of optical components business through merger of Maxell Malaysia and Tohshin Malaysia In 2001, the Maxell Group started its optical component business, applying the mass production technology and substrate/precision molding technology it had accumulated to date. Already, the Group has been shipping camera lenses for cellular-telephones and cars, optical pickup lenses for optical drivers, and other components. From now on, increasing market growth is expected, which will make it necessary to expand production systems to handle higher demand. Maxell Malaysia possesses mass production technology, acquired through the manufacture of recording media, while Tohshin Malaysia possesses molding and die technology. The merger of the two companies on January 1, 2006 as scheduled will enable them to utilize each other’s resources and expand their business with a view to overseas manufacturing. The aim is to achieve further growth in the Maxell Group’s optical component business. The transfer of business authority and merger of the subsidiaries will have no effect on consolidated or non-consolidated performance forecasts for the year ending March 2006. Outline of new company Name of the company Maxell Tohshin (Malaysia) Sdn.Bhd. Address Lot 1, Batu Berendam Free Trade Zone, Phase ,Batu Berendam, 75350 Malacca, Malaysia Date of establishment January 1, 2006 (Planned) Shareholders Hitachi Maxell, Ltd. 66.74%, Tohshin Seiko Co., Ltd. 17.24%, Maxell Asia (Singapore)Pte.Ltd. 16.02% Business activities Manufacturing and sales of recording media such as floppy disks, precision molding, and substrate molding parts (Reference) Maxell Seiki, Ltd. Address 45-101 Kagamida, Ooyamasakicho, Otokuni-gun, Kyoto Representative director Shingo Ashida Date of establishment September 1968 Capital 200,000,000Yen Shareholders Hitachi Maxell, Ltd.:100% Business activities Manufacturing and sales such as substrate molding parts and IC cards Tohshin Seiko Co., Ltd. Address 42-2 Shinmyo, Okumada, Watari-cho, Watari-gun, Miyagi Representative director Tatsuo Araki Date of establishment April 1989 Capital 300,000,000 Yen Shareholders Hitachi Maxell, Ltd.:100% Business activities Manufacturing and sales of precision molding, substrate molding , and optical components parts Maxell Electronics (Malaysia) Sdn.Bhd. Address Lot 1, Batu Berendam Free Trade Zone, Phase, Batu Berendam, 75350 Malacca, Malaysia Representative director Shigeo Komori Date of establishment May 1989 Capital 15,500,000 M$ Shareholders Hitachi Maxell, Ltd.:81% Maxell Asia (Singapore)Pte.Ltd.:19% Business activities Manufacturing and sales such as floppy disks Tohshin Precision (Malaysia) Sdn. Bhd. Address Lot1, Batu Berendam Free Trade Zone, Phase, Batu Berendam, 75350 Malacca, Malaysia Representative director Takehiro Udo Date of establishment July 1992 Capital 1,000,000 M$ Shareholders Tohshin Seiko Co., Ltd: 100% Business activities Manufacturing and sales of precision parts and substrate molding parts