June 1, 2016

Notice regarding Determination of Terms of Issue ofZero Coupon Convertible Bonds due 2021
STAR MICRONICS CO., LTD. (the "Company") made determination of the terms of issue and certain othermatters in respect of the issuance of Zero Coupon Convertible Bonds due 2021 (bonds with stock acquisitionrights (tenkanshasaigata shinkabu yoyakuken-tsuki shasai)) (the "Bonds with Stock Acquisition Rights", ofwhich the bonds and the stock acquisition rights are to be hereinafter referred to as the "Bonds" and the"Stock Acquisition Rights", respectively) which was approved at its Board of Directors' meeting held on May31, 2016.

Such determined terms, as well as those that were already determined, are presented as follows.

Matters Relating to the Stock Acquisition Rights(1) The Price of the Asset to be Contributed upon Exercise of theStock Acquisition Rights(2) Conversion Price

Equal to the principal
amount of the Bonds¥1,695(Reference)
1. Share Price, etc. on the Pricing Date (May 31, 2016)(1) Share Price (Closing Price) on Tokyo Stock Exchange, Inc.

¥1,265(2) Conversion Premium[{(Conversion Price)/(Share Price (Closing Price)) - 1}×100]

33.99%

2.

Outline of the Bonds with Stock Acquisition Rights(1)

Aggregate

Principal ¥8 billion plus an aggregate principal amount of the Bonds in respect

Amount of the Bondsof replacement certificates of the Bonds with Stock Acquisition
Rights(2)

Date of Resolution for the May 31, 2016
Issuance(3)

Allotment Date of Stock June 16, 2016 (London time; unless otherwise indicated, hereinafter
Acquisition

Rightsand the same shall apply)

Closing Date of the Bonds(4)

Period during which the At any time during the period from, and including, June 30, 2016 to,
Stock Acquisition Rights and including, June 2, 2021 (at the local time of the place where theAre Exercisable

Stock Acquisition Right is to be exercised); provided, however, that(i) if the relevant Bond shall have been called for early redemption,then up to the third business day in Tokyo prior to the date fixed forThis announcement is intended as general information regarding the issuance of convertible bonds by STAR MICRONICS CO., LTD. (the"Company"). This announcement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for the Bonds or the shares ofcommon stock of the Company in any jurisdiction in which such offer or solicitation is unlawful. In particular, the Bonds and the shares ofcommon stock of the Company issuable upon exercise of the Stock Acquisition Rights (together, the "Securities") have not been, and will not be,registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and, subject to certain exceptions, may not be offered or soldwithin the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S of the Securities Act). The Securities may
not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. No public offering of
the Securities will be made in the United States.

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redemption thereof (excluding the Stock Acquisition Rights
incorporated in the Bonds being called for redemption but elected by
the relevant bondholder not to be redeemed); (ii) if the relevant Bondshall have been purchased and cancelled by the Company, then up to
the time when such Bond is so cancelled; or (iii) if the relevant Bondshall become due and repayable, then up to the time when the Bond
becomes so due and repayable.
In any of the foregoing events, the Stock Acquisition Rights shall not
be exercised after June 2, 2021 (at the local time of the place as
aforesaid).
Notwithstanding the foregoing, the Stock Acquisition Rights may not
be exercised for such period as may be designated by the Company,
which period may not exceed 30 days, and which period shall end on
a date not later than 14 days after the effective date of the Corporate
Event if the Company reasonably determines that such suspension isnecessary in order to consummate the Corporate Event.

The StockAcquisition Rights may not be exercised if the day on which theexercise of the Stock Acquisition Rights will become effective (or, if
such day would not be a business day in Tokyo, the immediately
following business day in Tokyo) would fall on a date falling within
the period from the second business day in Tokyo prior to the record
date specified by the Company or any other date set for the purposeof determination of shareholders in connection with Paragraph 1 ofArticle 151 of the Act on Book-Entry Transfer of Company Bonds,Shares, etc. (collectively, the "Shareholder Determination Date") (or,if such Shareholder Determination Date would not be a business dayin Tokyo, the third business day in Tokyo prior to such ShareholderDetermination Date) to such Shareholder Determination Date (or, ifsuch Shareholder Determination Date would not be a business day inTokyo, the immediately following business day in Tokyo); provided
that if there is a change to the mandatory provisions of Japanese law
and regulation or practice relating to the delivery of shares upon
exercise of stock acquisition rights through book-entry transfersystem established pursuant to the Act on Book-Entry Transfer ofCompany Bonds, Shares, etc., then the limitation on the period during
which the Stock Acquisition Rights may be exercised pursuant to thisparagraph may be amended by the Company to reflect such change inlaw, regulation or practice.
This announcement is intended as general information regarding the issuance of convertible bonds by STAR MICRONICS CO., LTD. (the"Company"). This announcement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for the Bonds or the shares ofcommon stock of the Company in any jurisdiction in which such offer or solicitation is unlawful. In particular, the Bonds and the shares ofcommon stock of the Company issuable upon exercise of the Stock Acquisition Rights (together, the "Securities") have not been, and will not be,registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and, subject to certain exceptions, may not be offered or soldwithin the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S of the Securities Act). The Securities may
not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. No public offering of
the Securities will be made in the United States.

2(5)Maturity Date(6)Information on Dilutive After the issuance of the Bonds with Stock Acquisition Rights, theShares

June 16, 2021
ratio of the number of potentially dilutive shares to the total numberof issued shares as of April 30, 2016 (excluding treasury stock) willbe 11.15%.
The ratio of the number of potentially dilutive shares is calculated bydividing the number of the shares to be issued when all StockAcquisition Rights and stock acquisition rights relating to the Bonds
with Stock Acquisition Rights are exercised at the respective initialconversion price, by the total number of issued shares as of April 30,
2016 (excluding treasury stock).
###This announcement is intended as general information regarding the issuance of convertible bonds by STAR MICRONICS CO., LTD. (the"Company"). This announcement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for the Bonds or the shares ofcommon stock of the Company in any jurisdiction in which such offer or solicitation is unlawful. In particular, the Bonds and the shares ofcommon stock of the Company issuable upon exercise of the Stock Acquisition Rights (together, the "Securities") have not been, and will not be,registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and, subject to certain exceptions, may not be offered or soldwithin the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S of the Securities Act). The Securities may
not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. No public offering ofthe Securities will be made in the United States.

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