Press Release
May12, 2014
To Whom It May Concern:
Funai Electric Co., Ltd.
Representative Director
President and CEO: Yoshikazu Uemura(Code No.: 6839 First Section of TSE)

Notice of Issuance of Stock Options via Stock Acquisition Rights
Funai Electric Co., Ltd. (hereinafter “the Company”) hereby announces that following the resolution by the Boardof Directors to determine the offering details of an issuance of stock acquisition rights as stock options inaccordance with Articles 236, 238, and 239 of the Corporation Law, the decision was made in today’s Board ofthDirectors Meeting to discuss the aforementioned issuance, detailed below, at the 62 annual General
Shareholders Meeting scheduled for June 20, 2014.
1. Reasons necessitating the offer of stock acquisition rights with particularly favorable conditions
In order to increase morale and the desire to improve performance; secure superior personnel; and increase thevalue of the company, stock acquisition rights will be issued as stock options.
2. Details and maximum number of stock acquisition rights for which offering terms may be determined based ondelegation by resolution of the General Meeting of Shareholders(1) Types and number of shares associated with stock acquisition rights
The maximum number of Company common shares shall be 120,000.
Should the Company conduct stock splits (including gratis stock issues; the same hereinafter) or consolidations,the following method will be used to adjust the number of shares associated with each stock acquisition rights.
However, such adjustments will only be made for stock acquisition rights issued as part of this announcement thathave not been exercised as of the time of the adjustment. Furthermore, fractional sums of less than one share will
be rounded off.
Number of shares after adjustment = number of shares before adjustment x split (or consolidation) ratio
Additionally, the number of shares associated with stock acquisition rights may be adjusted within reason should
the Company merge through acquisition or consolidation, absorb a split-off, incorporate a split-off, engage in stock
swaps or equity transfers that become effective following the conclusion of the General Shareholder’s Meeting, orfor other unavoidable reasons.
(2) The number of stock acquisition rights
The maximum number of stock acquisition rights shall be 1,200. The number of shares to be issued per one stockacquisition right shall be 100; provided, however, that if any adjustment to the number of shares to be issued forstock acquisition rights is made under the provision in (1) above, a similar adjustment will be made.
(3) Monetary payment in exchange for stock acquisition rights
No monetary payments in exchange for stock acquisition rights are necessary.
(4) Value and calculation method of assets to be paid in upon exercise of stock acquisition rights
The value of assets to be paid in upon exercise of each new share subscription right shall be the per-share value(hereinafter “exercise price”) determined by the following method, multiplied by the number of shares associatedwith each new share subscription right as defined previously in (2).
The exercise price shall be either the average closing price (hereinafter “closing price”) of the Company’scommon stock on the Tokyo Securities Exchange of each trading day (except days when Company stock was nottraded) in the month prior to the date of the stock acquisition rights issuance (hereinafter “issue date”) multipliedby 1.05 (remainders of less than one yen will be rounded up) or the closing price on the issue date (or, if there isno closing price on the issue date, the closing price from the most recent trading day), whichever value is higher.
If the Company conduct stock splits or consolidations after the issue date of stock acquisition rights, theexercise price will be adjusted according to the following formula, with remainders of less than one yen roundedup.
Exercise price after adjustment = exercise price before adjustment x 1 / (split [or consolidation] ratio)
Should the Company issue new shares or dispose of treasury shares at a price below market value following theconclusion of the General Shareholder’s Meeting, the exercise price will be adjusted according to the following
formula, with remainders of less than one yen rounded up.
Exercise price after adjustment = exercise price before adjustment x(number of currently issued shares +(number of newly issued shares x amount paid per share) /market value before newissuance)) / (number of currently issued shares + number of newly issued shares)
The “number of currently issued shares” in the formula above is arrived at by subtracting the number of commonCompany treasury shares from the total number of outstanding common Company shares. Additionally, should theCompany dispose of common treasury shares, “number of newly issued shares” and “amount paid per share” shallbe replaced by “number of treasury shares to be disposed of” and “disposal price per share,” respectively.
Furthermore, the exercise price may be adjusted within reason should the Company merge through acquisition orconsolidation, absorb a split-off, incorporate a split-off, engage in stock swaps or equity transfers, or for otherunavoidable reasons.
(5) Exercise period for stock acquisition rights
Stock acquisition rights may be exercised between September 1, 2016, and August 31, 2023. Should the final dayof the exercise period for stock acquisition rights fall on a Company holiday, the previous business day shall beconsidered the final day.
(6) Conditions for exercising stock acquisition rights①The number of stock acquisition rights that may be exercised in a single year (from September 1 to August 31 ofthe following year) during the exercise period for new subscription rights shall be based upon standards
determined by the Board of Directors.
Additionally, should the owner of stock acquisition rights fail to exercise all, or a portion of, eligible stockacquisition rights during any year in the exercise period, his or her remaining stock acquisition rights from thatyear may be carried over into subsequent fiscal years until the end of the exercise period.
②The holder of stock acquisition rights may not exercise those rights in any year (from September 1 to August 31of the following year) during the exercise period described in (6) above without receiving authorization from theCompany.
③Persons who have been allocated stock acquisition rights must at the time of exercise of the rights hold aposition in the Company or an affiliate of the Company as a director, corporate auditor, executive officer, oremployee.
④The stock acquisition rights may not be transferred, pledged or otherwise hypothecated, or inherited.
(7) Notes concerning increases in capital and capital reserves should shares be issued due to the exercise of stockacquisition rights①The value of the capital increase due to the issuance of shares when stock acquisition rights are exercised shallbe 1/2 of the increase in capital value as calculated according to Article 40, Paragraph 1 of the Company
accounting regulations, with remainders of less than one yen resulting from the calculations rounded up.
②The value of the capital reserve increase due to the issuance of shares when stock acquisition rights are
exercised shall be calculated by subtracting the increased capital value defined in ① from the increase in capitaldefined in ①.
(8) Limitations on acquiring stock acquisition rights through assignment
Acquiring stock acquisition rights through assignment requires the approval of the Company’s Board of Directors.
(9) Causes for acquisition of stock acquisition rights①The Company may acquire unexercised stock acquisition rights without payment on a date to be decided
separately by the Company’s Board of Directors should a measure to approve a merger agreement under which
the Company will cease to exist, or a measure to approve an exchange of shares or equity transfer through which
the Company will become a wholly owned subsidiary, be approved at a General Shareholders Meeting (or upon
approval by the Company Board of Directors if approval at a General Shareholders Meeting is not required).
②The Company may acquire unexercised stock acquisition rights without payment on a date to be decided
separately by the Company’s Board of Directors should the exercise rights become lost in accordance withconditions stipulated above in (6).
③Should a holder of stock acquisition rights abandon all, or a portion, of his or her stock acquisition rights, theCompany may acquire those rights without payment on a date to be decided separately by the Company’s Boardof Directors.
(10) Handling of stock acquisition rights should the Company be restructured
Should the Company merge (limited to cases in which the Company would cease to exist due to merger), absorb asplit-off, incorporate a split-off, engage in share swaps or equity transfers (hereinafter collectively “restructuring”),
the Company may issue stock acquisition rights for the company created under i to ho of Article 236, Paragraph 1,Article 8 of the Corporation Law (hereinafter “restructured company”) to holders of unexercised stock acquisitionrights as of the effective date of restructuring based upon the conditions below. In this case, the unexercised stockacquisition rights would cease to exist and the restructured company would newly issue its own stock acquisitionrights. However, issuances of stock acquisition rights from the restructured company in accordance with theconditions below are limited to instances in which they are defined in merger agreements, split-off absorptionagreements, split-off incorporation plans, share swap agreements and equity swap plans.
①Number of restructured company stock acquisition rights to be issued
The number of restructured company stock acquisition rights issued shall be the same as the number of
unexercised Company new share subscriptions rights held.
②Types of restructured company shares associated with stock acquisition rights
Shares shall be common shares of the restructured company.
③Number of restructured company shares associated with stock acquisition rights
To be decided based upon (1) above after giving consideration to the conditions of the restructuring.
④Value of assets to be paid in upon exercise of stock acquisition rights
The value of assets to be paid in upon exercise of each allocated new share subscription right shall, after giving
consideration to the conditions of the restructuring, be determined by multiplying the price to be paid after
restructuring, calculated by adjusting the exercise price as defined earlier in (4), by the number of restructured
company shares associated with the new share subscription right as defined above in ③.
⑤Exercise period for stock acquisition rights
The exercise period shall extend from either the starting date of the exercise period for new share subscriptions
defined in (5) above or the effective restructuring date, whichever is later, to the expiration of the exercise period

for new share subscriptions defined in (5) above.
⑥Conditions for exercising stock acquisition rights
To be determined according to (6) above.
⑦Notes concerning increases in capital and capital reserves should shares be issued due to the exercise of stockacquisition rights
To be determined according to (7) above.
⑧Limitations on acquiring stock acquisition rights through assignment
Acquiring stock acquisition rights through assignment shall require the approval of the restructured company.
⑨Causes for acquisition of stock acquisition rights
To be determined according to (9) above.
(11) Handling of fractional shares resulting from the exercise of stock acquisition rights
Fractional sums of less than one share arising when shares are issued to a holder of stock acquisition rights as aresult of the exercising of his or her rights shall be rounded off.
(12) Other Matters
Other matters relating to stock acquisition rights shall be determined by a resolution of the Board of Directors.

For further information, please contact
Toru Fujii
Investor and Public Relations
E-mail: investor_relations@funai.co.jp