October 30,2020

CompanyNihon Dempa Kogyo Co., Ltd.

name
Representative

Hiromi Katoh, Representative Director andPresident
Code: 6779, First Section of the Tokyo
Stock Exchange

ContactTelMichio Aoyama, Corporate Officer
and General Manager ofAdministration Division
03-5453-6711

Notice of the Completion of Transfer of Subsidiary (stock transfer)and Posting of Other Operating Income（Progress report on disclosure items）

Notice of the Transfer of Subsidiary (stock transfer)
Nihon Dempa Kogyo Co., Ltd. ("NDK") announced that it has transferred to Sito
Microelectronics Technology (Shanghai) Co., Ltd., which is a subsidiary of Jiaxing Jiawang
Investment Partnership (Limited Partnership), a portion of the shares of NDK SAW Devices Co.,
Ltd., a wholly owned subsidiary of NDK. The details of this transfer were announced in NDK’s
news release on June 3, 2020, “Notice of Transfer of Subsidiary (stock transfer).”
The details related to "Outline of the Company Receiving Stock Transfer" and "Stock Transfer
Execution Date" have changed from that announced on June 3, 2020, and these changes are
outlined below.

１．Change to Company Receiving Stock Transfer
In the announcement dated June 3, 2020, the actual company receiving the stock transfer(see note 1) was expected to be a newly established subsidiary of Jiaxing Jiawang Investment
Partnership (Limited Partnership). NDK can now announce that Sito Microelectronics
Technology (Shanghai) Co., Ltd. has been confirmed as the company receiving the stock transfer,a new subsidiary of Jiaxing Jiawang Investment Partnership (Limited Partnership).
①Company
nameSito Microelectronics Technology (Shanghai) Co., Ltd.

② Location

Room 328, Unit 2, No. 231 Shi Bo Cun Road, China (Shanghai) Pilot Free
Trade Zone

③ NamePresidentofYi Dai

④ Details
business⑤ DateofMicroelectronics technology development, technical services, electronic
component salesofJune 23, 2020

establishment⑥MajorJiaxing Jiawang Investment Partnership (Limited Partnership)

shareholders
andshareholding
ratio⑦ Relationship83.33%
Jiaxing Kuangda Lanchen Investment Partnership (Limited Partnership)
16.67%
Capital Relationship

Not applicablebetween NDK
and the New
Company

Personnel relationship

Not applicable

Transactional
Relationship

Not applicable

Applicable
Relationships with

Not applicable

Other Parties(Note 1.)Since the company receiving the stock transfer is an unlisted company some details have beenomitted.
２．Change transfer dates
The underlined part has changed.
Before change

After changes

Date of decision

June 3, 2020

June 3, 2020

Date of share transferagreement

June 3, 2020

June 3, 2020

August 31,2020 (Planned)

October 30, 2020

Stock transfer
execution date

December 31, 2020
(Planned)

On January 1, 2021
or later

３．Other Operating Income
Due to the transfer of shares, NDK expects to record other operating income of 2.8 billion yen on
a non-consolidated basis and 2.7 billion yen on a consolidated basis as a gain in sales of sharesin the third quarter of the period ending March 31, 2021. As a result of the transfer, anunrealized profit may occur from the remaining shares held by NDK. The actual amount is now
under review. The amount will be disclosed as soon as possible if necessary.
４．Outlook
Other operating income, outlined above, will be incorporated into the “Consolidated Earnings
Forecast for the Fiscal Year Ending March 31, 2021,” which is scheduled to be announced on
November 10, 2020
End