Report on the impact of the earthquake off the northeast coast of Japan (2nd Update)

Please accept our deepest sympathies to all of the victims of the earthquake which occurred on March 11, 2011 off the northeast coast of Japan.

This is to inform you of the Mabuchi Group’s situation as of March 18, 2011 following the great earthquake.

1. Headquarters operational status

As previously reported, functions at our headquarters were not damaged or disrupted, and we are operating as usual. In our research and development building next to the headquarters building, and in our technical center (in Inzai City, Chiba Prefecture), however, some minor damage occurred. We are currently repairing the damage.

2. Influence of scheduled blackouts

In the future, due to implementation of scheduled blackouts, occasional power outages are expected at the headquarters (in Matsudo City, Chiba Prefecture.) Although we are making efforts to minimize the influence of the blackouts, it is expected that browsing our websites, sending/receiving e-mails to/from our company, and making incoming calls to our company may be temporarily limited during the blackouts.

We truly hope this will not pose too much inconvenience for you and appreciate your understanding on this matter.

3. Supply of our products

(1)Production situation

Since we are performing all of our production activities overseas in China and Vietnam, we do not expect short-term supply disruption of our products from the great earthquake.
Since some parts and materials are being supplied from the quake-hit areas, we are checking the future influence of the earthquake.

(2)Logistics situation

At present, due to the stoppage of logistics services for entire Tohoku district, Hokkaido, Tochigi Prefecture and Ibaraki Prefecture, deliveries of our products to these areas have been interrupted. We are sorry for any inconvenience.
Regarding other areas, we are supplying our product as usual without disruption.

4. Influence on business performance

We are currently examining the influence of the great earthquake on the Mabuchi Group’s business performance.
We will issue an announcement soon as we complete the assessment.

We are continuously reviewing detailed information on this matter and will promptly disclose important new information when we obtain it.