Member of FASF

January 25, 2008

To whom it may concern,
Company name

Mitsubishi Materials
CorporationAkihiko Ide, President

Representative’sname(Securities Code No.: 5711 First Section of the Tokyo
Stock Exchange and the Osaka Securities Exchange)
Toru Suzuki,
Deputy General Manager,
Contact
Corporate Communications andIR Department(TEL: +81-3-5252-5206)

Regarding Merger of Mitsubishi Shindoh and Sambo Copper Alloy—Consolidated Subsidiaries of Mitsubishi Materials
Mitsubishi Materials Corporation (hereinafter “Mitsubishi Materials” or “the Company”) resolved andsigned share exchange agreements to make Mitsubishi Shindoh Co., Ltd. (hereinafter “MitsubishiShindoh”), and Sambo Copper Alloy Co., Ltd. (hereinafter “Sambo Copper Alloy”), wholly owned
subsidiaries of Mitsubishi Materials at the Board of the Directors meeting held on October 26, 2007.
Mitsubishi Materials also resolved to merge Mitsubishi Shindoh and Sambo Copper Alloy as of April 1,
2008, after making them wholly owned subsidiaries, which was announced along with the above shareexchange agreements.
Mitsubishi Materials hereby announces that it has resolved the details of the merger between these twowholly owned companies (hereinafter “the merger”) as described below at the Board of Directors meeting
held today, and is to seek approval of the shareholders at an extraordinary general meeting of shareholders
to be held by each of these companies on February 20, 2008.
Note: With regard to Sambo Copper Alloy, a share exchange agreement with Mitsubishi Materials wasapproved by Sambo Copper Alloy’s shareholders at an extraordinary general meeting of shareholders heldon November 21, 2007, and it became a wholly owned subsidiary of the Company as of December 28,
2007, the effective date of the share exchange agreement.
With regard to Mitsubishi Shindoh, a share exchange agreement with Mitsubishi Materials was approvedby Mitsubishi Shindoh’s shareholders at an extraordinary general meeting of shareholders held on
December 21, 2007, and it is scheduled to become a wholly owned subsidiary of the Company as ofFebruary 1, 2008, the effective date of the share exchange agreement. Pursuant to the share exchange,
Mitsubishi Shindoh’s stock will be delisted from the First Section of the Tokyo Stock Exchange as ofJanuary 28, 2008.

1. Purpose of the Merger
We believe that the merger will create synergies as outlined below.
1) Enabling unified and swifter management-related decisions, as well as strengthening the verticalintra-group value chain;-1-2) Increasing earnings with efficient capital investments in local production bases in eastern and westernJapan, and by establishing a more flexible, strategic and risk-responsive production system;
3) Reinforcing development capabilities by gathering development resources and enhancing marketing
functions; and4) Accelerating an overseas presence by gathering groupwide management resources.
The new corporation to be derived from Mitsubishi Shindoh and Sambo Copper Alloy (hereinafter “thenew corporation”) will be Japan’s largest manufacturer of copper alloy products with a 17% share in thedomestic copper alloy industry and a 25% share in the domestic copper strips industry. Furthermore, byfusing the development capabilities, technologies and human resources of Mitsubishi Materials with thoseof the new corporation, we will strive to become “the world’s top-rated copper processing company indevelopment capabilities, quality and earnings capability” by harnessing our strengths mainly inhigh-performance copper alloy strips and Eco Brass*.
*Eco Brass is an epoch-making new lead-free copper alloy that ensures excellent cutting performance,
having achieved global attention for use particularly in water supply devices. It excels in high strength andmachining performance such as cutting and forging, and has resolved issues such as stress corrosion
cracking and dezincification corrosion.

2. Outline of the Merger(1) Schedule for the merger
1. January 29, 2008 (tentative)
2. January 29, 2008 (tentative)
3. February 20, 2008 (tentative)

4. April 1, 2008 (tentative)

Resolution of the Board of Directors regarding the merger(Mitsubishi Shindoh and Sambo Copper Alloy)
Signing of the merger agreement
Reference date for an extraordinary general meeting ofshareholders (Mitsubishi Shindoh and Sambo CopperAlloy)
Due date for the proposed merger (effective date)(2) Type of merger
This is the merger with Mitsubishi Shindoh as a surviving company and Sambo Copper Alloy as acompany that ceases to exist. There will be no new shares to be issued and/or capital to be increased by thismerger.

3. Overview of Mitsubishi Shindoh and Sambo Copper Alloy(1) Company name
Mitsubishi Shindoh(Surviving company)
as of September 30, 2007
(2) Line of business
Manufacture and sales of copperand copper alloy products,fabricated products and thin-filmproducts(3) Date of establishment
May 20, 1925
(4) Location of head office3, Nibancho, Chiyoda-ku, Tokyo(5) Representative

Masahiro Nishida, President-2-Sambo Copper Alloy(Company that ceases to exist)
as of June 30, 2007
Manufacture and sales of copperand copper alloy products, andfabricated products
May 16, 1935
374, Sambo-cho 8-chome,
Sakai-ku, Sakai-shi, Osaka
Takao Hashida, President

(6) Capital(7) Total number of sharesissued(8) Net assets(9) Total assets(10) Fiscal term-end(11) Principal shareholders
and shareholding ratios¥8,713 million¥2,550 million

62,699,667shares

22,669,100 shares¥19,179 million (consolidated)¥51,824 million (consolidated)
March 31
Mitsubishi Materials Corporation
51.0%¥14,205million (nonconsolidated)¥57,942 million (nonconsolidated)
December 31

The Master Trust Bank of Japan,Ltd.
2.7%
Japan Trustee Services Bank, Ltd.
1.4%Note: The ratio of February 1,2008, is scheduled to be as shownbelow;
Mitsubishi Materials
Corporation100%

Mitsubishi Materials Corporation100%(as of December 31, 2007)

4. Company Information after the Merger
1. Company name:
Mitsubishi Shindoh Co., Ltd.
2. Line of business:
Manufacture and sales of copper and copper alloy products,
fabricated products and thin-film products
3. Location of head office: 7F Gotenyama Trust Tower, 7-35, Kita-Shinagawa 4-chome,
Shinagawa-ku, Tokyo
4. Capital:¥8,713 million
5. Fiscal term-end:
December 31
6. Impact of the merger on financial results
Because the merger is to occur between two wholly owned consolidated subsidiaries of Mitsubishi
Materials, the effects of the merger on the consolidated financial results of the Mitsubishi Materials
Group are considered to be insignificant.

-3-