ELECOM Announces Acquisuition of Total Shares in ednet AG, Makes It a Subsidiary

OSAKA--16 Feb--Kyodo JBN-AsiaNet/InfoQuest

The ELECOM Co., Ltd. (with Head Office in Chuo-ku,Osaka, President, Junji Hada) held a board meeting today and announced that the company has resolved to acquire the total issued shares of ednet AG, located in Sulzbach, Republic of Germany, to make the company a subsidiary company. The ELECOM boasts expansive business in developing, manufacturing, and sales of input equipment, supply goods, storage items, memory products and OA furniture etc. in the field of personal computers and digital equipment related products in Japan, Asian, and European countries.

1. Purport

Ednet has structured a sales network in regard to personal computer related products in Europe, centered in Germany and covering Holland, Switzerland, Austria, Belgium, etc. The present acquisition was decided with projections that it would become possible to expend sales of ELECOM Group products in Europe with reduced risk by making the ednet AG a subsidiary company. At

present, sales of ednet are limited to ednet brand products but hereafter, ednet will gradually handle and sell ELECOM Group products to expand sales of ELECOM Group products over the entire European market.

2. Company outline

Acquiring company: ELECOM Co., Ltd

(1)Trademark: ELECOM Co., Ltd.

(2)Location: 1-1 Fushimi-machi 4 Chome, Chuo-ku, Osaka, Japan

(3)Establishment: May 28, 1986

(4)Capital: Yen664,840,000(As of February 2007)

(5)Number of issued shares: 16,193,200 shares

(6)Number of employees: 316(As of March 2006)

(7)Business contents: Development, manufacture and sales of personal computers and digital equipment related products

(8)Consolidated subsidiary companies: 4 companies (Japan(Tokyo),South Korea, China, Holland)

(9)Consolidated sales: Yen43,215,460,000(for the period ending March, 2006)

Acquired Company: ednet AG

(1)Trademark: ednet AG

(2)Location: Oberliederbacher Weg 36, Sulzbach, Germany

(3)Establishment: May 9, 2000

(4)Capital: One million Euros (As of December 2006)

(5)Number of issued shares: 1,000,000 shares

(6)Number of employees: 30(As of December 2006)

(7)Business contents: Planning and sales of personal computer related products

(8)Consolidated subsidiary companies: 3 companies (Switzerland, Holland, Hong Kong)

(9)Consolidated sales: Yen19,301,000(For the Period ending December, 2005)

3. Schedule for acquiring shares

February 16, 2007

Board of Directors meeting relating to acquisition of shares (ELECOM)

Concluding of Agreement on transfer of shares

February 27, 2007

Extraordinary Shareholder's meeting (ednet) relating to change of organization*

Date of acquiring shares (Planned)

*With acquisition of the entire shares of ednet by ELECOM Co.,Ltd. and becoming a 100% subsidiary of ELECOM, an Extraordinary shareholder's meeting of ednet is scheduled to be held on February 27, 2007, the date of share acquisition by

ELECOM and with the approval for change of the Article of Association, it is planned to change the organization of ednet from a company limited to a limited company and change the name of the company to ednet GmbH.

Source: ELECOM CO., LTD.

Contact:

Tadashi Katayama

PR Office

ELECOM CO., LTD.

Phone: +81-6-6229-1418

E-mail: [email protected]

URL: (English) http://www.elecom.eu.com

(Chinese) http://www.elecom-china.com

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