PressInformation

Regarding the Business Transfer of Consolidated Subsidiary as well
as Dissolution and Liquidation of the Said Subsidiary
April 28, 2016

At the Board of Directors’ meeting held today, we resolved the transfer of the entire
business of HST CO.,LTD. and HST (HONG KONG) LTD., our consolidated subsidiary, toHIROSE ELECTRIC CO., LTD. and HIROSE ELECTRIC HONG KONG TRADINGCO.,LTD.(consolidated subsidiary of HIROSE), each.
We have also resolved the dissolution and liquidation of HST CO.,LTD. and HST(HONG KONG) LTD. after the business transfer.
Moreover, the determination of the transfer price and the conclusion of the transfer
agreement are scheduled on the end of June.

1. Reason for Business Transfer and Dissolution and Liquidation of Subsidiary
HST CO.,LTD. and HST (HONG KONG) LTD. manufactures and sells switch andsensors. HIROSE ELECTRIC will now have uniform management of their productivity,
design capability, and purchasing power, which leads to effective use of management
resource and compound activity, as well as enhancing their business by having a synergy
effect. Due to reasons above, HST CO.,LTD. and HST (HONG KONG) LTD. will transfer
their business to HIROSE ELECTRIC CO., LTD. and HIROSE ELECTRIC HONG KONG
TRADING CO.,LTD.
The business transfer date is scheduled on October 1st, 2016. HST CO.,LTD. and HST(HONG KONG) LTD. is scheduled to be dissolved and liquidated after the business transfer.

2. Overview of Business Transfer(1) Overview of the Subsidiary(1) Name

HST CO.,LTD.

(2) Location

5-23, Osaki 5-chome, Shinagawa-ku, Tokyo, HRS building(3) Representative

President and Representative Director, Kazunori Ishii(4) Business

Manufacture, sales of electronic devices (switch, sensors)(5) Capital stock

95 million yen

1(6) Established on

March 6th, 1973

(7) Shareholder

HIROSE ELECTRIC CO., LTD. 100%

(8) Relationship with theCapital relationship100% subsidiary of HIROSE

listed company

Human relationship

3 directors and 1 auditor fromHIROSE is appointed as their
executive

Business relationshipNo substantial relationship

Status as related parties

Said company is 100%
subsidiary of HIROSE, so meetsthe requirement of related party(9) Financial status andSettlement term

March 31stresults of preceding fiscalShareholders' equity

1,004 million yen

year

Total assets

1,271 million yen

Sales revenue

1,933 million yen

Operating profit-53 million yen

Recurring profit-78 million yen

Net profit-79 million yen(1) Name

HST (HONG KONG) LTD.

(2) Location

Room 1003, West Wing, Tsim Sha Tsui Centre, 66 Mody
Road, Tsim Sha Tsui East, Kowloon, Hong Kong

(3) Representative

President, Kazunori Ishii(4) Business

Purchase, sales of electronic devices (switch, sensors)(5) Capital stock

17 million yen(6) Established on

April 20th, 2001

(7) Shareholder

HST CO.,LTD. 100%

(8) Relationship with theCapital relationshiplisted company

100% subsidiary of HST
CO.,LTD. which is 100%
subsidiary of HIROSE

Human relationship

2 directors from HIROSE isappointed as their executive

Business relationshipNo substantial relationship

Status as related parties

Said company is 100%
subsidiary of HIROSE, so meetsthe requirement of related party2

(9) Financial status andSettlement term

March 31st

results of preceding fiscal

Shareholders' equity

894 thousand US Dollarsyear(100 million yen)
Total assets

2,851 thousand US Dollars(321 million yen)

Sales revenue

10,202 thousand US Dollars(1,225 million yen)

Operating profit

207 thousand US Dollars(24 million yen)

Recurring profit

208 thousand US Dollars(25 million yen)

Net profit

174 thousand US Dollars(20 million yen)

3. Future Schedule(1) Resolution date of the board of directors

End of June, 2016 (planned)(Settlement of transfer price)(2) Date of concluding the contract

End of June, 2016 (planned)(3) Due date of business transfer

Oct 1st, 2016 (planned)(4) Date of completion of liquidation

End of December, 2016 (planned)

4. Future Outlook
The said subsidiaries are HIROSE’s wholly owned subsidiaries, so the impact of thisdissolution and liquidation on consolidated result of fiscal year ending March 2017 will be
negligible, and it is included in the consolidated business forecast.
Moreover, should any events occur that needs disclosure we will announce immediately.

(Reference) Business forecast for this fiscal year and actual result of previous fiscal year(Consolidated)(hundred millions of Yen)
Sales

Business forecast for this FY

OperatingRecurring

Net profit attributableprofitprofitto parent shareholders

112,000

27,00028,000

195,000

120,284

28,79430,516

21,104(Year-ending March 2017)
Actual result of previous FY(Year-ended March 2016)3