Press Release
April 2, 2013
To Whom It May Concern:
Funai Electric Co., Ltd.
Representative Director
President and CEO: Tomonori Hayashi(Code No.: 6839 First Section of TSE/OSE)
Notice of Acquisition of Inkjet‐Related Technology and Assets of Lexmark International, Inc.
Funai Electric Co., Ltd. (Headquarters: Daito, Osaka; hereinafter, “Funai” or the “Company”) announces todaythat it has executed an agreement to acquire the inkjet‐related (IJ) technology and assets of Lexmark
International, Inc. (Lexington, Kentucky; hereinafter, “Lexmark”).
1. Strategic Rationale for the AcquisitionAs a contract manufacturer, Funai has supplied inkjet hardware to Lexmark since July of 1997. Funai hasworked closely with Lexmark for around 16 years in developing printer hardware and has established a strong
relationship with Lexmark.
The acquisition of the IJ technology and assets enables Funai to start and grow our own inkjet business, not as acontract manufacturer of printer products (excluding lucrative supplies) any longer, with the inkjet patents,
manufacturing facilities and comprehensive R&D capabilities for the products (including supplies) related toinkjet printers, the strong inkjet business platform which Lexmark has established for years. As a result, Funai
believes it will be able to expand its business going forward sustainably.
2. The Assets to be Transferred(1)The Details of Assets①Inkjet Patents②IJ R&D Resources in the U.S.
③All of Outstanding Shares of IJ Manufacturing Affiliate of Lexmark in Philippines (Including Land,Building, Equipment and Staff)④Other IJ Technologies and Assets(2) Assets to be Transferred in AmountAcquisition price is JPY 9,500 million (assuming an exchange rate of JPY 95 to the U.S. Dollar), and costs forthis acquisition are all to be funded through resources on hand. The details of assets and liabilities to betransferred and their amount are under review.
3. Profile of Lexmark
(1)
Name
(2)

Location(3)

Name and Position ofRepresentative(4)

Businesses

(5)
(6)
(7)
(8)

CapitalEstablishment
Net Assets
Total Assets

Lexmark International, INC.
One Lexmark Centre Drive, 740 West New Circle Road, Lexington, Kentucky
USAPaul Rooke, Chairman and CEO
Involvement in manufacturing of printer and imaging products, andproviding related software, solution and service
US$ 901.6 million (As of December31, 2012)
May 25, 1990
US$ 1,281.2 million (As of December31, 2012)
US$ 3,523.4 million (As of December31, 2012)

(9)Principal Shareholders
and Ownership Ratios(10)

Relationships between
the Listed Company andSaid Company

4. Schedule
Conclusion of(1)A g r e e m e n t s
Expected Date of(2)Asset Transfer

Artisan Partners Holdings LP
12.17%FMR LLC
6.87%
Indian Asset Management LLC
6.72%
Fairpointe Capital LLC
6.59%
LSV Asset Management
5.98%(As of December31, 2012)
No capital relationships requiring mention exist between
the Company and said company. Furthermore, noC a p i t a lparticularly notable capital relationships exist between
Re l a t i o n s h i p saffiliated persons or affiliated companies of the Companyand said company.
No personal relationships requiring mention exist
between the Company and said company. Furthermore,
Personal
no particularly notable personal relationships exist
Relationships
between affiliated persons or affiliated companies of theCompany and said company.
Transactional
Funai Electric Group is the manufacturer and supplier of aRelationships
printer product for Lexmark International to sell.
Said company has no people with relevant relationships
People withto the Company. Furthermore, no affiliated persons orRelevant
affiliated companies of said company have people withRelationships
relevant relationships to the Company.

April 2, 2013
Within the first half of 2013

5. Overview of Accounting Treatment
Stock and fixed assets are to be acquired with certain amount of goodwill expected.
6. Future Outlook
At present, the likely impact of the Transaction in current fiscal years going forward is under review. A
notification will be provided shortly after such information has been confirmed.

(Reference) Forecast of Consolidated Operating Performance for the last Fiscal Year (As Announced November 2,2012) and Consolidated Operating Performance for the Preceding Fiscal Year
(Million yen)
Consolidated
Consolidated
Consolidated
Consolidated Net
Operating Income Ordinary Income
Net Sales
Income (Loss)(Loss)(Loss)
Forecast of Consolidated
Operating Performance for
205,000(2,500)(4,100)(5,800)the Last Fiscal Year
(Year Ending March 31, 2013)
Consolidated Operating
Performance for the246,147
461174(4,629)Preceding Fiscal Year
(Year Ended March 31, 2012)2