Kanematsu Electronics' Chinese Subsidiary to Begin Business on
December 1st– To Develop SI and Cloud Services for Japanese Business Making
Inroads in China –CHENGDU, China--(BUSINESS WIRE)-- Kanematsu Electronics Ltd. (Presidentand CEO, Hideki Enomoto, headquartered in Tokyo, hereafter, KEL), hascompleted preparations for the establishment of a Chinese subsidiary, as notedin the release dated July 30th, 2010, A Notice Regarding the Establishment of aSubsidiary in China, and will formally begin business there commencing on
December 1st. This release shall serve as notice of its business offering.
Our business for the Chinese market will focus on the following five services.
1. Off-shore Services (design contracting services for Japan-based
manufacturing companies)
2. System Integration (SI) Services (local SI support for Japan-based
businesses making inroads into China)
3. Japan-China Coordination Solutions (supporting both Japan and China
for Japan-based companies making inroads into China)
4. Cloud Services (providing cloud services for IT infrastructure andbusiness-related applications)
5. Global Management Services (supporting the resolution of global
management issues in conjunction with consulting firms)
KEL will continue to further develop its services to support Japan-based
companies making inroads in China.
What's Behind the Establishment of our Chinese Subsidiary
With the rapid increase in China's economy, more and more Japanesebusinesses are making the decision to move into China, and as a result there isan urgent need for local information systems facilities. In addition, China is also
rapidly converting to an information-based economy, and there is a growing
need in this market for IT services.

Given this situation, KEL decided to establish a local subsidiary within ahigh-tech park in Chengdu, in Sichuan Province, the hub of China's industrialdevelopment.
* About Chengdu
The Chinese government established Chengdu as a leading-edge city for the ITindustry, which has made it the focus of many global businesses. Chengdu has
amassed a wealth of talented personnel in advanced technology, including
research and development, software development, electronic parts design, andmore. Chengdu has been aggressive in attracting businesses that produce
value-added commodities, resulting in an impressive growth in the high-techindustries, including electronic information, precision instruments manufacturing
and bio-tech (pharmaceuticals).
KEL intends to take full advantage of this business environment, focusing on
off-shore and advanced contracting development to provide IT solutions
optimized for China's IT environment.
In addition, KEL plans to offer a variety of consulting services for themanagement issues that operations in China and other overseas markets face.
Business Overview
1. Off-shore Services (design contracting services for Japan-based
manufacturing companies)
KEL provides design development contracting services that utilize talented
Chinese professionals for Japan-based manufacturing companies. Chinesedesigners are trained in Japanese and Japanese quality standards, and provide
design quality at a Japanese level.
Our initial focus will be contracting for LSI design, but we plan to offer support
services for mechanical design including automotive and electricalmanufacturing.

2. SI Services
KEL supports the local SI structure for Japan-based businesses moving into
China. We provide IT infrastructure design, layout, and maintenance services aswell as the backup systems and security solutions needed for security
strategies.
3. Japan-China Coordination Solutions
KEL provides seamless IT solutions to link the systems at its clients'
headquarters and other sites in Japan with those of their subsidiary in China. Of
particular importance is our support for the creation of design and development
systems based on 3D CAD, such as CATIA, to take advantage of experiencebuilt up in Japan, for manufacturing companies now ready to make the move toChina.
4. Cloud Services
Based on clients' business needs, KEL can provide local necessary IT resources
as cloud services, supporting the optimization of their systems. For
business-based applications, we are planning to start by offering Japan-basedbusinesses front-office-based solutions such as supply chain management(SCM) and electronic data interchange (EDI) as cloud services. In the future, weare planning to offer back-office-based solutions as cloud services as well.
5. Global Management Services
The management issues facing a Japan-based business as it develops in China
or elsewhere overseas are multiple and diverse and include personnelmanagement, organization restructuring, M&A/business alliances, global SCM,
the increasing importance of the role of design development, etc.
In light of all these management issues, KEL offers a variety of consulting
services, working with consulting firms, from the strategic level that demands an
immediate effect to business concept level for the medium- to long-term
approach.

Overview of our Chinese Subsidiary(1)Name: Kanematsu Electronics (Chengdu) Ltd.

(2)Representative: Director and President, Mikio Moriyama(3)Address:

11th Fl. Bldg. 10, Zone C, 81 Tianfu SoftwarePark
Xin Dong St., Gao Xin District, Chengdu,
Sichuan Province, People's Republic of China

Postal Code: 610041

Tel: +86-28-6596-6671

Fax: +86-28-6596-6672(4)Start of Business: December 1, 2010(5)Principal Business:LSI/mechanical parts design development
contracting(off-shore services)/sales/layout, maintenanceandoperations of IT infrastructure equipment andprovision of cloud services(6)Accounting Period: December 31(7)Employees: Approximately 40 (planned for FY2013)(8)Principal Place ofBusiness: Headquarters, Chengdu, Sichuan Province, PRC

Planned Sales Locations: Shanghai, Beijing, Dalien, Guangzhou(9)Capitalization: US$3,100,000(10)Investor: Kanematsu Electronics, Ltd. 100%

Kanematsu Electronics, Ltd. Overview(1)Name: Kanematsu Electronics, Ltd.

(2)Business: Design/layout and operation services for businessinformation systems based in IT, and system consulting
and IT system products, and software import/export
sales, rentals, leasing, maintenance, and personnel
placement for development, manufacturing and labor(3)Headquarters: 2-17-5 Kyobashi, Chuo Ward, Tokyo Metropolitan District(4)Representative : Chief Executive Officer, Hideki Enomoto(5)Capitalization: JPY 9.03125 billion(6)Sales: JPY 43.1 billion (as of March 2010)(7)Employees: 1,067 (including affiliates), 590 (KEL alone)(8)Website: http://www.kel.co.jp* Product and company names appearing herein are the trademarks or theregistered trademarks of their respective companies.
ContactsBusiness Inquiries:(Inquiries can be made in Japanese or English)
Kanematsu Electronics, Ltd.
Motoshige Miyazaki/Goki Kinoshita, +81-3-5250-6312
Second Solutions Business Division, Engineering Support Division
MOT ＆ China Business, Sales & Marketing
Fax: +81-3-5250-6145
Email:
Miyazaki: m_miya@kel.co.jp
Kinoshita: g_kino@kel.co.jp
orPress Inquiries(Inquiries in Chinese can be made in email)Kanematsu Electronics, Ltd.
Takashi Saruwatari, +81-3-5250-6328
Business Planning Office:
Email: info@kel.co.jp
Fax: +81-3-5250-6856