Source: Document disclosed on August 8th, 2016 in accordance with the Tokyo Stock Exchange regulations

August 10th, 2016
NIKKISO CO., LTD.

Notice regarding the Acquisition of AquiSense Technologies LLC
Nikkiso Co., Ltd. (“NIKKISO”) hereby announces that its Board of Directors decided on August 8, 2016 toconclude a share purchase agreement for the acquisition of 100% shares in AquiSense Technologies LLC(“AquiSense”) by Nikkiso America, Inc. (“NAI”), the wholly owned subsidiary of NIKKISO.
1. Outline of acquiring entity
(1)
(2)
(3)
(4)

Company Name
Address of Headquarters
Representative
Business Description(5) Capital(6) Date Established(7) Capital investors andinvestment ratio(8) Relationship withNIKKISO

Nikkiso America, Inc.
5910 Pacific Center Boulevard, Suite 110, San Diego, CA, U.S.A.
President & CEO Dennis Martin
Administration and management of business planning of the Company
and its Subsidiaries, as well as promotion and management of Nikkiso
product businesses in North, Central and South America
USD 10
May 10, 2006
Nikkiso Co., Ltd. (100%)
Capital relationship
Personal relationship
Business relationshipTo hold 100% interests by Nikkiso Co., Ltd.
To dispatch four board members from Nikkiso
Co., Ltd.
To provide management service from Nikkiso
Co., Ltd.

2. Objectives of acquiring equity
Deep UV-LEDs are expected to be used as light sources for a variety of applications, such as watersterilization, air disinfection and deodorization, medical sterilization and treatment, surface modification
and resin/ink curing, analytical and measurement instrument. Expansion in the deep UV-LED global market
is anticipated by capturing unmet needs of UV mercury lamp as well as substitution for the existing
demands for UV mercury lamp. Global requirements for environmentally friendly products and demands
for applications generated by the improvement of the living standard in emerging countries will be satisfied
by advancing downsizing, high efficiency, long lifetime and decline of market price of deep UV-LEDproducts.
Until now, NIKKISO and Nikkiso Giken Co., Ltd. (“GIKEN”) (collectively “NKS”) has carried out
research and development, manufacturing and sale of deep UV-LED not only components but also modulesand systems. NKS is conducting technology and market development.
AquiSense carries out of research and development, manufacturing and sale of modules and systems using
the deep UV-LED for water disinfection, air disinfection, surface disinfection and optical measurement.
AquiSense has launched the first UV-LED based water disinfection system, called “PearlAqua”, and has
started selling their superior products to the global market. By this strategic acquisition NKS is accelerating
the market development in the UV-LED business.
NKS is strengthening the competence in UV-LED based modules and systems as a whole of NKS group bygetting the advanced technologies including pioneering deep UV-LED applications.

3. Outline of acquired entity
(1)
(2)
(3)
(4)

Company Name
Address of Headquarters
Representative
Business Description

AquiSense Technologies LLC
4400 Olympic Blvd, Erlanger, KY 41018, U.S.A.
President & CEO Oliver Lawal
Research and development, manufacturing and sale of deep UV-LED
modules and systems(5) Capital
USD 1,700,000(6) Date EstablishedOct 23, 2014
Oliver Lawal , other shareholders 18(7) Capital investors andinvestment ratio(8) Relationship withNothing particular in terms of capital tie, personal connection, andNIKKISO
business relation exists(9) Financial status for recent business years (consolidated)
Fiscal Year
FY2015
Net assets
USD 0.85M(JPY 90M)
Total assets
USD 1.61M(JPY 169M)
Sales and income will remain undisclosed as agreed upon by both parties.
(conversion: USD 1.00=JPY 105)
4. Outline of other major parties regarding shares acquisition
Oliver Lawal(1) Name
Non-public(2) Location(3) Relationship with ourN/Acompany
Besides the above share transferee, share acquisition from 18 shareholders is planned. Name and location willremain undisclosed as agreed upon between each shareholder and NAI. There is no capital, personal andbusiness relationship to note.
5. Percentage of shares acquired and acquisition cost
(1) Equity owned before transfer
0.0%(2) Equity acquired & Equity after 100.0%
transfer(3) Estimated Acquisition cost
USD 9,300,000(including advisory fees)
From the perspective of fairness and appropriateness, the amount was determined based on the results ofreview by third-party organizations.
6. Schedule(1) Board meeting resolution(2) Signing date(3) Shares transfer dateAug 8, 2016
Aug 9, 2016 (planned)
Aug, 2016 (planned)

7. Financial impact on group performance
It is estimated that this acquisition will have no significant impact on the Nikkiso group’s consolidated
business performance for the period ending Dec 31, 2016.
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