August 9, 2019

Notice Regarding Liquidation and Dissolution of Subsidiary
STAR MICRONICS CO., LTD. (“the Company”) today announced that it had decided to liquidate and dissolve
its consolidated subsidiary Shanghai S&E Precision Co., Ltd. at a Board of Directors’ meeting held on August9, 2019. Brief details are presented as follows.

1.

Reason for Liquidation
Positioned as a consolidated subsidiary in the Company’s Precision Products Segment, Shanghai S&E
Precision Co., Ltd. was established in April 2001 to engage in the manufacture of components forautomobile, air conditioning equipment and other use. Shanghai S&E Precision has been forced to accept
a request from its lessor to vacate and return its current base of operations by December 31, 2019.
Based on these current circumstances, and taking into account such wide-ranging factors as increasingly
fierce price competition with local component manufacturers, the financial costs associated with relocating
to another plant, and the prospect of increases in rent and personnel expenses in the future, STARMICRONICS has decided to liquidate and dissolve Shanghai S&E Precision after recognizing thedifficulties in continuing operations going forward.

2.

Overview of Shanghai S&E Precision Co., Ltd. (the subsidiary to be liquidated)(1) NameShanghai S&E Precision Co., Ltd.
(2) Address
No. 1, East Kangqiao Road, Pudong, Shanghai, People’s Republic ofChina(3) Name and position of Junichi Murakami Chairman, Shanghai S&E Precision Co., Ltd. (Senior
the representative
Executive Officer, STAR MICRONICS CO., LTD.)(4) Business content
Manufacture and sale of precision processed components(5) Paid-in capital
21,521 thousand yuan(6) EstablishedApril 2001
(7) Major shareholders andSTAR MICRONICS CO., LTD. 60%, ETO Co., Ltd. 40%
ratio of shares held
(8) Relationship with the CapitalSTAR MICRONICS CO., LTD. maintains a 60%
companyequity interest in the company
Human
The Company’s four directors and officers serve
resources
concurrently as directors and auditors of Shanghai
S&E Precision Co., Ltd.
Commercial
No notable commercial relationship between STAR
MICRONICS CO., LTD. and Shanghai S&E
Precision Co., Ltd.
Related party
Shanghai S&E Precision Co., Ltd. is a consolidated
subsidiary of STAR MICRONICS CO., LTD. andtherefore falls within the scope of a related party
Note: Taking into consideration the impact of the business activities of Shanghai S&E Precision Co.,
Ltd., liquidation and dissolution procedures, and other factors, details of the Company’s operating
results and financial position for the most recent three years has not been disclosed.

3.

Schedule
Plans are in place to dissolve Shanghai S&E Precision Co., Ltd. after all necessary steps have been
completed in accordance with local statutory and regulatory requirements.

4.

Outlook
Losses associated with the liquidation and dissolution of Shanghai S&E Precision Co., Ltd. have beenfactored in as an extraordinary loss and posted as business restructuring expenses in the Company’s
consolidated results for the first half of the fiscal year ending December 31, 2019 announced on August 9,
2019. In addition, this matter will have nominal impact on the Company’s consolidated financial results