For Immediate Release:
January 30, 2008

JVC Announces Transfer of Its Circuit Business
Victor Company of Japan, Limited (JVC) adopted a resolution at the Board of Directors meeting
held on January 30, 2008, to transfer its circuit business to Meiko Electronics Co., Ltd. as ofMarch 31, 2008, as described below.
Description
1.

Reason for the transfer

JVC is currently reforming its business structure and management foundation by focusing on
consumer electronics, professional electronics, and entertainment as the three future corebusinesses, under its management reconstruction plan, Action Plan 2007.
As part of Action Plan 2007, JVC has planned fundamental structural reforms in each businessarea including business transfer and spin-off. As part of JVC’s component business, printed
circuit boards are manufactured and sold to Meiko Electronics. JVC and Meiko Electronics havebeen considering a transfer of JVC's circuit business to Meiko Electronics.
This business transfer will allow JVC to concentrate its management resources on its corebusinesses, namely, consumer electronics, professional electronics, and entertainment. It
enables JVC to further commit itself to rebuilding the entire company through business selectionand concentration.
JVC and Meiko concluded that the transfer of JVC’s circuit business would contribute to thefuture development of Meiko's printed wiring board business, whose priority strategy is to expand
into the areas of high-end and module package boards. JVC’s unique circuit technology assets
include the Victor Interconnected Layer (VIL) method that excels in thin construction andinsulation for high-density, multilayer build-up boards, as well as JVC’s human resources, andmanufacturing expertise.
In addition, this move is expected to enhance the job security of JVC employees working in thecircuit business and ensure the continuity in the responsibility of product supply to existingcustomers. The decision is also consistent with the direction of the reforms under Action Plan2007.

2.

Details of Business Transfer(1)

Overview of circuit board business
Design, manufacture, and sale of high-density build-up multilayer boards (VIL boards)
and development of related technologies

1(2) Operating results for the year ended March 2007
Circuit board segment(a)Total sales

Results for the year endedMarch 2007 (b)Ratio (a/b)

5,528

742,6850.7%

Gross income (loss)(695)

239,762─

Operating income (loss)(1,061)(5,656)

─Ordinary income (loss)(1,392)(11,695)

─Amounts indicated in millions of yen(3) Assets to be transferred, liabilities and their values (as of December 31, 2007)
AssetsLiabilities

Item

Book value

Item

Book value

Current assets

391

Current liabilities

0

Fixed assets

834

Total

1,225

Total

0

Amounts indicated in millions of yen(4) Transfer value and settlement method
The transfer value is determined based on the value of the transferred assets assessedat the end of March 2008.
The payment will be made in cash.
(5) Transfer of employees
The workforce (150 employees) will first resign from JVC and then be hired by MeikoElectronics Co., Ltd.
3.

Overview of recipient of business transfer (Meiko Electronics Co., Ltd.)(as of March 31, 2007)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

(9)

Name:
Core businesses:
Date of establishment:
Location of head office:Executive officer:
Capital:No. of employees:

Meiko Electronics Co., Ltd．
Development, manufacture, and sales of printed circuit boards
November 25, 1975
5-14-15 Ohgami Ayase Kanagawa,
Representative Director and President Yuichiro Naya
¥ 8,860,650,000
Non-consolidated: 668
Consolidated: 7,449 (domestic: 1,462, overseas: 5,987)
Large shareholder structure and shareholding ratio (as of March 31, 2007):
Yuichiro Naya
30.23%The Master Trust Bank of Japan, Ltd.
7.69%
Japan Trustee Services Bank, Ltd.
4.29%

Relationship with JVC: The Company has no capital and personal relationships with JVC.
JVC has been purchasing printed circuit boards from xxx Co., Ltd.
and its subsidiaries (including those overseas) for JVC’s consumerelectronics business.

24.

Schedule
January 30, 2008
January 30, 2008
March 31, 2008

5.

Corporate resolution
Conclusion of business transfer agreement
Deadline for business transfer

Future implications
The transfer value will be disclosed as soon as it is determined, along with the effects on theresults for the current fiscal year.

##For further information, please contact:
Toshiya Ogata, Senior Staff Manager
Public Relations Group
Corporate Communications Department
Victor Company of Japan, Limited (JVC)
Tel: +81-(0)45-450-2951, 2952
Fax: +81-(0)45-450-2959
E-mail: ogata-toshiya@jvc-victor.jp
URL: http://www.jvc.co.jp/english

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