Sumitomo Metal Micro Devices and Hokuriku Electric Industry Co., Ltd. have agreed to a tie-up

Sumitomo Metal Micro Devices, Inc. (SM Micro Devices), a fully-owned subsidiary of Sumitomo Metal Industries, Ltd. (Sumitomo Metals), has agreed with Hokuriku Electric Industry Co., Ltd. (Hokuriku Electric) to make a capital and business alliance.

1. Making SM Micro Devices into a joint venture company
As the first step, Hokuriku Electric will purchase a 19.0% stake of outstanding common shares of SM Micro Devices, which is currently held by Sumitomo Metals, on November 2, 2009. In the next step, the Systems Division of Hokuriku Electric and SM Micro Devices will merge to establish a new company (80% owned by Hokuriku Electric and 20% by Sumitomo Metals) by August 2010, with an aim to strengthen services to customers, jointly conduct purchasing and product development, and mutually complement manufacturing bases of each other.

2. Purchase of Hokuriku Electric's treasury stock
At the time of establishing a new company in the targeted month of August 2010, Sumitomo Metals plans to purchase some treasury stock of Hokuriku Electric, corresponding to their purchase of shares of the new company, in order to enhance mutual trust and cooperative relationship of the two companies and make the deal more effective. Details remain to be determined.

3. Schedule
  September 29, 2009    Resolution at the Board of Directors meeting
  September 29, 2009    Signing of the agreement on a capital and business alliance
  November 02, 2009     Purchase of a 19.0% stake of SM Micro Devices by Hokuriku Electric
  August 2010               Establishment of a new company

4. Profile of the Companies Involved

(1) Hokuriku Electric

(2) SM Micro Devices