Sumitomo Metals Acquires Treasury Shares of Hokuriku Electric, Corresponding to the Deal to Dispose Shares of Sumitomo Metal Micro Devices

Sumitomo Metal Industries, Ltd. (Sumitomo Metals) and Hokuriku Electric Industry Co., Ltd. (Hokuriku Electric) today agreed that Sumitomo Metals will acquire 7,647,000 treasury shares of Hokuriku Electric on August 2, 2010. This amount represents about 8.27% of shares outstanding and issued, including treasury stock (or about 9.58% of voting rights) of Hokuriku Electric.

On September 29, 2009, Sumitomo Metal Micro Devices, Inc. (SMMD), a subsidiary of Sumitomo Metals, agreed on a capital and business alliance with Hokuriku Electric for electric module business and on May 12, 2010 the two companies agreed on an absorption-type corporate split, whereby the systems division of Hokuriku Electric will be split and transferred to SMMD on August 2, 2010. Sumitomo Metals will then transfer a certain amount of shares of SMMD to Hokuriku Electric, so that 80% of the succeeding company’s shares will be owned by Hokuriku Electric and 20% by Sumitomo Metals.

Sumitomo Metals has decided to acquire shares of Hokuriku Electric in order to enhance mutual trust and the cooperative relationship with Hokuriku Electric, corresponding to their acquisition of SMMD's shares. This acquisition is hereby announced as it applies to the accumulation of shares under the Article 167 of the Financial Instruments and Exchange Act and the Article 31 of its Enforcement-Order.