Canon Tokki Corporation

News Releases 2007
From January to December 2007
DateContents

12.28.2007

Completion of the acquisition by Canon Inc.

11.29.2007

Tokki Approved Tender Offer by Canon Inc., Allocates New
Shares for Canon

1.26.2007

Tokki Enters into Business Alliance with GE Global
Research Center, U.S.A.

News Release
December 28, 2007
Company: Tokki Corporation (JASDAQ Code: 9813)
President and Representative Director: Teruhisa Tsugami
Contact: Osamu Oshinden (Corporate Planning Department)
Phone: +81-3-3551-3151

Notice concerning acquisition by Canon Inc.
TOKYO, December 28, 2007—Tokki Corporation (“Tokki”) today announced that Canon Inc.
(“Canon”; Chairman and CEO: Fujio Mitarai; Headquarters: Ohta-ku, Tokyo) has completed thepayment for shares of Tokki newly issued through a third-party allotment.

Combined with the8,101,620 shares acquired through the tender offer concluded on December 12, 2007, Canon hasacquired 22,301,620 shares, which represents a 66.44% ratio of Tokki voting rights.

As a result,

Tokki has become a consolidated subsidiary of Canon.
zResult of the tender offer (from November 14 to December 12, 2007)
Ratio of voting rights held by CanonCanon(Ratio of ownership to total number(Number of shares held by Canon)of outstanding shares)

Before the--- rights---%

offer(--- shares)(---%)

After the81,016 rights

41.84 %

(8,101,620 shares)(41.36%)

offerzNumber of voting rights held by

Result of the third-party allotment (December 28, 2007)
Number of voting rights held byRatio of voting rights held by Canon

Canon(Ratio of ownership to total number(Number of shares held by Canon)of outstanding shares)

Before the81,016 rights

41.84 %

allotment(8,101,620 shares)(41.36%)After the223,016 rights

66.44 %

allotment(22,301,620 shares)(66.01%)

Through the acquisition by Canon, Tokki will be able to reinforce its financial position andstrengthen its capabilities of development, procurement, sales and support for OLED displays and its
thin-film photovoltaic cells production equipment business.

At the moment, Tokki does not expect the acquisition to affect its consolidated operating
performance.

Reference: Canon’s press release (http://www.canon.com/news/2007/dec28e.html)

News Release

November 29, 2007
Company: Tokki Corporation (JASDAQ Code: 9813)
President and Representative Director: Teruhisa Tsugami
Contact: Osamu Oshinden (Corporate Planning Department)
Phone: +81-3-3551-3151

Tokki to approve tender offer by Canon Inc., allocate new shares for CanonTOKYO, November 13, 2007—Tokki Corporation (“Tokki”), at its Board of Directors meeting,decided to express its approval of the tender offer by Canon Inc. (“Canon”; Chairman and CEO:Fujio Mitarai; Headquarters: Ohta-ku, Tokyo) and to perform a third-party allocation of newly issued
shares for Canon. Following a successful completion of the tender offer and the acquisition byCanon of shares through third-party allocation, Canon would own a majority of Tokki’s outstanding
stock, making Tokki a consolidated subsidiary of Canon.

In recent years, Tokki has faced financial challenges, which were mainly caused by sluggish demandin the OLED display market and a decrease in orders. On the other hand, customer requirements for
OLED production equipment have become increasingly advanced with regard to substrate size andtact time in the production of OLED displays. Now, several electronics manufacturers haveannounced the launch of new consumer products equipped with OLED displays. Through theintroduction of these differentiated new products, consumers will be made aware of the advantagesof OLED displays, which will lead to the expansion of the OLED market. As for the solar panel
market, the tight demand-supply gap for silicon has been drawing increased attention on thin-film
type photovoltaic cells, such as those produced using Tokki production equipment.

Through the strategic capital alliance with Canon, Tokki believes it can improve its competitivenessas a leading equipment manufacturer in the OLED market. In concrete terms, the tie-up with Canon
will enable Tokki to raise funds for the redemption of borrowings and working capital, and toaccelerate the development of production equipment for OLED displays and thin-film photovoltaic
cells. Additionally, the tie-up is also expected to enable Tokki, as a subsidiary of Canon’s group, toreduce product costs by improving engineering and procurement levels and, by enjoying the scale
merits of volume production, to deliver sustained value to customers by utilizing Canon’s global
sales and service network.

Even after becoming a subsidiary of Canon, Tokki will continue to focus on its current businessportfolio in manufacturing production equipment for OLED, thin-film photovoltaic cells, organic
lighting and electronic devices, and to support Tokki customers on a global basis.

Basic overview of capital alliance agreement with Canon (summary)
1.

Canon will purchase 14,200,000 shares of common stock (amount per share: 417 yen; total
amount: 5,921,400,000 yen) newly issued through third-party allocation

2.

Canon will acquire a majority of Tokki’s outstanding shares through the tender offer and theshares purchased through the new share allocation

3.

A majority of Tokki’s board members and two corporate auditors will be dispatched from
Canon

4.

As for directors, Tokki will have two representative directors, with one to be appointed fromamong the board members dispatched by Canon, along with the current representative director
Teruhisa Tsugami, who will continue holding his position.

Reference (Canon news release):
http://www.canon.com/press/2007/p2007nov13e.html

News ReleaseJan.26, 2007
Company: Tokki Corporation (JASDAQ Code: 9813)
President: Kenichi Tsugami, Representative Director
Contact: Takafumi Suzuki, Corporate Officer of Business Planning Dept.
Phone: (+81)3-5205-2901
Tokki Enters into Business Alliance with GE Global Research Center, U.S.A. in Joint Development andMarketing of PE-CVD Film Encapsulation Technology and Equipment
for Manufacturing Organic Light Emitting Diode (OLED) Displays and Organic Electronics
Tokki Corporation and GE Global Research Center which is the central R&D laboratory of General ElectricCompany (Listed as GE in the New York Stock Exchange) entered into a partnership agreement to collaborate
in a joint development and marketing of PE-CVD (1) encapsulation technology and equipment formanufacturing OLED displays and organic electronics. This partnership is expected to accelerate production
process innovation and market expansion of advanced OLED displays.
Tokki enjoys a high reputation from customers in Japan and around the world as a leading company of OLED
display production equipment with unique technology to integrate the processes from film deposition toencapsulation by fully utilizing Factory Automation precise handling and processing technology. In thispartnership agreement, Tokki will integrate PE-CVD encapsulation technology (2) licensed from GE Global
Research Center in its own OLED display production systems. OLED devices require a high degree ofhermetic sealing or “encapsulation” since moisture and oxygen can drastically impede the devices’functionality. Tokki highly evaluates the film encapsulation technology developed by GE Global ResearchCenter to be the key technology for future OLED devices and process technology. The primary focus of theproject will be to develop and demonstrate pilot line manufacturing equipment that successfully incorporates
GE’s film encapsulation technology. The ultimate goal of the business alliance is to manufacture PE-CVD film
encapsulation equipment which can be used in a variety of industry sectors, including OLED displays andorganic electronics, and market this equipment to customers throughout the world.
1. Brief of Agreementa)

Tokki and GE Global Research Center will jointly develop some equipment based on the extensive
experience and know-how of each company.

b)

The jointly developed-equipment will include trial equipment for experiments and evaluation byengineers and technical personnel of both companies to perform research and development, experiments
and evaluation so that the level of equipment will pass the market requirements.

c)During the joint development, GE Global Research Center will not disclose nor transfer their patents on
the film encapsulation technology and know-how on the film encapsulation technology to third parties
without agreement of Tokki. When development of market-ready equipment is completed, the twocompanies will begin joint marketing.

2. Near Future Outlook for Tokki
Tokki will strongly promote this joint development program to improve its OLED technology andincrease sales and profit of OLED device production equipment. After the development of marketableequipment and start of sales promotion, we will disclose our marketing plan. The expected sales increase
from this partnership agreement will not be reflected in the next fiscal term of the Company but in thefuture fiscal. Today, Tokki published a generation of special loss and a correction for the fiscal term
ending June 2007. This correction involved stock dividend but not in which no correction in relation tothe agreement with GE. In regard to the operation report of the Company for the next fiscal year, theresults may be changed in accordance with the development of the trial equipment and such a change
will be disclosed when fiscal year end short-form report is published at the end of the fiscal year.
3. Schedule
January 26, 2007

Board meeting approval of Tokki Corporation

January 26, 2007

Signing of the business alliance agreement

January 26, 2007

Start of the work according to the agreement

4. About GE Global Research Center
1)

Registered Name: General Electric Company

2)

Major Business Fields: Research in infrastructure, industrial, healthcare and other areas.

3)

Year of Establishment: 1900

4)

Place of Main Office: Niskayuna, New York, U.S.A.

5)

Representative Director: Mark M. Little

6)

Number of Employees: 2,500

7)Profile: GE Global Research Center was the first industrial research laboratory in the U.S.A.,
and is one of the world’s most diversified research centers, providing innovative technology for
all of GE’s businesses. GE Global Research Center has been the cornerstone of GE technology
for more than 100 years, developing breakthrough innovations in areas such as medical imaging,energy generation, jet engines, advanced materials and lighting. GE Global Research Center has
its headquarters in New York and strategically located R&D laboratories in Bangalore, India;
Shanghai, China; and Munich, Germany. For more information on GE Global Research Center,please visit www.research.ge.com.

5．About TOKKI Corporation
TOKKI Corporation is a publicly held manufacturer that was established in 1967 and has been listed onthe JASDAQ (9813.Q) since 1991. TOKKI is a global leader and a world’s top supplier in thedevelopment of engineering and manufacturing equipment for the Organic Electronics industry,including OLED display.

One of the company’s specialties is the application of a wide range ofvacuum technology, and Factory Automation precise handling and processing technology. TOKKI wasfirst in the world to develop equipment for the mass-production of OLED displays, which consist of fullautomation vacuum system for both thin film deposition and encapsulation processes without exposing
devices to the atmosphere.

In 2006, TOKKI launched a new line of equipment for the mass-productionof next generation thin-film solar cells which are of the non-silicon type by utilizing its accumulated
vacuum technology for mass-production of OLED devices.
advancement of solar cell panel production.

The company is also committed to theTOKKI Corporation is headquartered in Tokyo and its

main production facility is in Niigata prefecture. Please visit TOKKI Corporation at www.tokki.co.jp

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(Notes)(1) PE-CVD
PE-CVD is an abbreviation for Plasma Enhanced-Chemical Vapor Deposition. This technology is amethod to deposit gas which contains specific materials on the surface of a substrate in the form of athin film by changing the properties of the materials into plasma to accelerate their chemicalreactions. This technology can make a very thin film of approx. 1 to 2 micrometers on the substrate.
(2) Film encapsulation technology for OLED devices
In the production of OLED devices, encapsulation technology is needed to cut off the organic
materials which easily affect the work by the contact with air and moisture in the atmosphere. In
current main stream OLED production, encapsulation is made with glass plates and metal packages.
These encapsulation methods can be replaced with film encapsulation technology, and this method iscalled Film Encapsulation. Film encapsulation is a key technology for advanced OLED development
due to its compact size, low weight and thickness, larger substrates for larger display areas, and is a
future target of flexible substrates.
Encapsulation of Glass Substrate with Metal Package

Encapsulation of Film Substrate with protective film

Glass Substrate
Film Substrate

0.2 to 0.5 mm

1.5 to 2mm
Adhesive

Glass or metal canDesiccant

Encapsulation protective film

3