We inform you that Toko, Inc. ("Toko") and Chilisin Electronic Corp. ("Chilisin") agree to enter into the Business Alliance Agreement (the "Agreement") dated ?May 13, 2009 as follows.
Particulars
1. Background and Purpose of Business Alliance
Toko and Chilisin expect to expand the market of Toko Products in China and the market of Chilisin Products in Japan, Europe and the United States by using customer's base established so far by both companies.
By this Alliance, Toko intends to improve the goods in RF area, especially wire-wound chip inductor for the market with high credibility, such as vehicle installation and white goods, etc.
By this Alliance, Chilisin intends to improve the goods in Power area, especially power inductor for the market, such as notebook, portable devices and network, etc.
2. Outline of Alliance
The objects of the Business Alliance are described below.
1. Joint development by Toko and Chilisin
2. Toko and Chilisin sell the products jointly developed
3. Sales of Toko Products by Chilisin and Sales of Chilisin Products by Toko
3. Outline of Both Companies
Toko, Inc.
1. Main business: Manufacture and sales of coil, inductor, piezoelectric ceramic, etc.
2. Location of head office: 2-1-17, Higashi-Yukigaya, Ota-ku, Tokyo, Japan
3. Representative Director and President : Shigeru Kawatsuhara
4. Capital: JPY16,446 million
5. No. of Employee: 13,185 (consolidated basis as of the end of March 2009)
Chilisin Electronic Corp.
1. Main business: Manufacture and sales of coil, inductor, and ferrite
2. Location of head office: No.29, Lane301, Tehhsin Rd.,Hosin, Hukou, Hsinchu, Taiwan
3. Representative: Lai Yuan Ho, Chairman
4. Capital: NT$1,523,506K
5. No. of Employee: 1,542 ( Based on March 31, 2009)
4. Effect on Business Performance
The Alliance has a minor effect on the business performance at this stage.
