PressInformation

Announcement of Allotment of Share without Contribution
January 30, 2015

Hirose Electric (“the Company”) announced that, at the Board of Directors’ meeting
held on January 30, 2015, the Company resolved to conduct allotment of share without
contribution utilizing the Company-owned treasury stock based on Article 185 of theCompanies Act.

1. Purpose of the Allotment of Share without Contribution
The Company recognizes returning profit to shareholders as one of the most importantmanagement issue, and the basic policy is to secure necessary internal reserves tostrengthen management foundation as well as continue a stable dividend payout. Under thispolicy, in addition to dividend to shareholders, the Company has been buying back share in
the past, with the purpose of enhancing shareholder returns and improving capital efficiency,
as well as enabling flexible capital policy that corresponds to the changes in managementenvironment.
On the other hand, as of December 31, 2014, the Company owns 6,107,549 treasury
stocks, which accounts to 15.3% of the total number of share the Company issued. Should
the Company continue to buy back from general shareholders through stock market, there isconcern that the number of outstanding share will decrease and impact the share liquidity inthe future. Therefore it has been recognized as an important management issue to continue
returning to shareholder while maintaining outstanding share in order to ensure liquidity to
improve corporate value.
Due to reasons above, the Company had been considering various measures, and now,
the Company has resolved to conduct allotment of share without contribution in order toutilize the Company-owned treasury stock efficiently, and return benefit to shareholders aswell as increase the Company share liquidity, and widen the range of investors.
Allotment of share without contribution is a system based on Article 185 of the Companies
Act, which enables the Company to allot the Company shares to shareholders without
additional payment. Unlike share split, the treasury stock owned by the Company will not be
subject to the allotment.
1Moreover, the Company share issued on the allotment to shareholders will all be allottedfrom the treasury stock owned by the Company.
Furthermore, no special procedures will be needed for shareholders, as all the procedure
will be completed by the Company, each Securities Company, Japan Securities DepositaryCenter, and Sumitomo Mitsui Trust Bank Ltd (“Sumitomo Mitsui Trust”) which is theshareholder registry administrator.
Sumitomo Mitsui Trust will send a notification regarding the allotment by the end of April
2015.

2. Outline of Allotment of Share without Contribution(1) Outline of Allotment without Contribution
March 31, 2015 (Tue) will be the record date. The Company’s treasury stock will beallotted without contribution with the ratio of 0.05 common share per each commonshare owned by shareholders listed or recorded in the final shareholder registry ofthe record date.
(2) The Situation of shares issued by the Allotment without Contribution① Total number of share issued before the allotment: 40,020,736 shares② Number of treasury stock that does not perform allotment: 6,107,549 shares③ Total number of treasury stock issued on the allotment: 1,695,659 shares④ Total number of share issued after the allotment: 40,020,736 shares
Note) The above is based on shares as of December 31, 2014, and there is apossibility of change in Number of treasury stock that does not perform allotment ofshares and Total number of treasury stock issued on the allotment, should there beshare buyback or cancellation, or exercising stock option by the record date.

3. Schedule(1) Public notice day of record date: March 16, 2015 (Mon) (Planned)(2) Record date: March 31, 2015 (Tue) (Planned)(3) Effective date: April 1, 2015 (Wed) (Planned)

4. Others(1) Capital stock
There is no increase in capital stock on this allotment(2) Dividend
As the effective date of this allotment of share without contribution is April 1, 2015,
the year-end dividend of fiscal year ended March 2015 will be based on the2number of shares before the allotment. As for the dividend forecast of fiscal yearended March 2015, there is no change from the previous amount; 115 yen per
share for fiscal year-end, 230 yen per share for full year.
(3) Fractional shares less than one share caused by the allotment
Based on Article 234, Paragraph 1 of the Companies Act, the fractional shares lessthan one share caused by the allotment will be sold all together and the proceeds
will be distributed to the relevant shareholders according to fraction.
(4) Share less than one unit (100 shares) caused by the allotment
With the allotment, there are times share less than one unit (100 shares) occurs.
Those shares cannot be traded in the trading market, but the following system isavailable.
① Purchase system of share less than one unit
This is a system based on Article 192, Paragraph 1 of Companies Act, thatshareholder who owns shares less than one unit can claim the Company topurchase it.
② Additional purchase system of share less than one unit
This is a system based on the regulation of the Articles of Incorporation inaccordance with the provision of Article 194, Paragraph 1 of the Companies
Act, that shareholder can claim to the Company to sell the Company’s shares
so that the shares less than one unit they own would become one unit (100shares) combined together.
(5) Price adjustment on exercise of stock option
With this allotment of share without contribution, the exercise price per share upon
the stock option issued will be adjusted as the following from the effective date ofApril 1, 2015.

6th Stock option

Price before

Price afteradjustment

adjustment

15,025 yen

14,309 yen

13,561 yen

12,915 yen

Resolution at Ordinary General Meeting of Shareholders
on Jun 27, 2013
(Board of Directors’ meeting on Oct 31, 2013)
7th Stock option
Resolution at Ordinary General Meeting of Shareholders
on Jun 27, 2014
(Board of Directors’ meeting on Sep 30, 2014)3

[Additional explanation](Concrete example regarding the announcement)(Example 1)

Shareholder with 2000 share
BeforeNumber of shares owned

2000 share

After+100 share

2100 share(Example 2) Shareholder with 90 share
BeforeNumber of shares owned

After

90 share+4.5 share

94 share
0.5 share

0.5 share will be distributed by cashNote) Fractional share of 0.5 share will be sold all together and the proceeds will be
distributed to shareholders along with dividend(Contact/Notification)
The effective date will be April 1, 2015 (planned). Regarding when it will be allotted to yoursecurities transaction account, please contact your securities company.
Sumitomo Mitsui Trust will send a notification regarding this allotment to all relevant
shareholders by the end of April 2015.

4