ETIC Completes Share Transfer and Receipt of Debt Settlement withSenoh / the other
June 21st, 2012
Enterprise Turnaround Initiative Corporation of JapanThe Enterprise Turnaround Initiative Corporation of Japan (“ETIC”), following a decision by
the ETIC Committee, has resolved to implement a transfer of shares and receive a debt
settlement pertaining to Senoh Corporation and related companies listed below. As a result,
ETIC no longer holds any stock, debt or any other interests in the Senoh Companies.
1. Name of companies concerned
Senoh Corporation (hereafter “Senoh”)
Senotech Corporation (hereafter “Senotech”)
Senoh Maintenance Service Corporation (hereafter “Senoh Maintenance”)
Upsen Corporation (hereafter “Upsen”)(With 4 companies mentioned above, collectively “Senoh Companies”)
2. Background
ETIC resolved to provide support to the Senoh Companies on March 26 th, 2010, underArticle 25, Clause 4 of the Enterprise Turnaround Initiative Corporation of Japan Act(Act 63, of 2009; includes changes to the Act thereafter; hereafter “the ETIC Act”), andsubsequently on June 1st of the same year resolved to implement a purchase of debt
under Article 28, Clause 1 of the Act, and a capital increase under Article 31, Clause 1of the Act.
In September of the same year, a company separation was implemented at Senoh(former company) in line with the business revitalization plan, through which ETIC
acquired the shares which represented 100% of the voting rights in Senoh (newcompany) with a ¥400 million cash injection.
Since the time of the decision to provide support, Senotech and Senoh Maintenancehave become100% subsidiaries of Senoh, and they remain this way up to today. Upsen
and the former company after company the separation (Matsuhidai K.K.) have been
subject to liquidation in accordance with the business revitalization plan.
ETIC then proceeded with the business revitalization of the Senoh Companies. Having
reached a certain level of progress with regard to the revitalization, ETIC moved
forward with the process of transferring shares held in Senoh, and has reached anagreement to transfer shares to Mizuno Corporation. In response to this decision, ETIC
promptly completed an agreement with the transferee regarding the share transfer, andis scheduled to transfer all shares by the end of June this year. Debt settlement is alsoscheduled to be completed at the same time.
Note: Please refer to the appendix for an outline of the share transferee.

3. Amount of capital increase
ETIC made a capital increase at Senoh of ¥400 million, through which it acquired 8,000
shares equivalent to a 100% share allocation. All of these shares will now betransferred.
4. Amount of debt
Of the ¥7,787 million owed to the Senoh Companies, after the company separation
proceedings ETIC purchased ¥1,031 million from the financial institutions, and received
partial repayment (¥336 million) through business revenue. With repayment of theremaining debt amount of ¥665 million being now scheduled the total delat repayment
is to be completed.
Note: The abovementioned debt purchase includes the purchase of debt assumed by the continuing company inaccordance with the company separation, and alternatively, cases where loans were provided by ETIC to thecontinuing company, which were then used to repay the debt owed to related financial institutions that wastransferred from the former company to the continuing company.

5. Comments from State Ministers in charge of ETIC
Prime Minister, Minister of Internal Affairs and Communications, Minister of Finance,
Minister of Health, Labour and Welfare, Minister of Economy, Trade and Industry: Noopinion expressedAppendix: Outline of the Share Transferee
Mizuno Corporation
Head office:1-12-35 Nanko Kita, Suminoe-ku, Osaka, Japan(Registered address: 4-1-23 Kitahama, Chuo-ku, Osaka, Japan)

President:

Akito Mizuno

Date established:

July 19, 1923 (Founded: April 1, 1906)

Paid-in Capital:¥26,137,410,000 (as of the end of March 2012 )Listing:

Tokyo Stock Exchange, Osaka Securities Exchange

Employees:

5,238 employees (as of the end of March 2012; consolidated)

Main business:

Manufacture and sale of sports-related products including
baseball products, sportswear, sports shoes, golf products;
operation and contracted operation of sports facilities; school
program business; other