July 28, 2005

Name of company:

KAGA ELECTRONICS CO., LTD.

Stock code:

8154

Stock exchange listing:

Tokyo Stock Exchange, First Section

Headquarters:

2-2-9, Hongo, Bunkyo-ku, Tokyo

Representative

 

Title:

Founder & CEO

Name:

Isao Tsukamoto

Contact person

 

Title:

Managing Director, Finance & Administration Headquarters

Name:

Waichiro Shimoyama

Tel:

+81-(0)3-4455-3111

 

Notice concerning a business alliance with Kashimura Company Limited,

including capital participation

 

KAGA ELECTRONICS CO., LTD. (Founder & CEO : Isao Tsukamoto, Headquarters : Bunkyo-ku,

Tokyo, Capital : 11,843 million yen) has agreed to enter into a business alliance with Kashimura

Company Limited, and resolved to draw up and conclude a basic agreement, based on the premise

that KAGA ELECTRONICS will obtain a majority of their stock, and to include the sending of a

director to Kashimura Company Limited, at a Meeting of the Board of Directors held on July 28,

2005, and thereby makes the following announcement.

 

1. Reason for business alliance including capital participation

As the said company, established in 1947, is a trading company specializing in cameras and

related products, this business alliance looks set to create a relationship where both parties

complement each other, between that company's network and know-how, and our group's IT

device distribution business, which is centered on PCs.

 

2. Company profile

Name of company:

Kashimura Company Limited

Headquarters:

1-6-14, Kaji-cho, Chiyoda-ku, Tokyo

Date of establishment:

November, 1947

Capital:

450 million yen

Representative

 

Title:

Chief Executive Officer (C.E.O)

Name:

Tomihiko Asada

Description of business

Film / color paper, camera, optical equipment, audio-visual equipment, accessories for photograph and audio-visual equipment, office automation equipment, audio-visual educational equipment, measuring instruments, sale of visual-related software, design of the darkroom, design and construction of video conference room, video making, etc.

Fiscal year-end

January 31

Financial result of the previous fiscal year:

As of January 31, 2005

 

Net sales: 39,072 million yen

 

Total assets: 14,116 million yen

Number of employees:

202

Number of shares issued:

8,630,000 shares (Unlisted company)

 

3. Relationship with this company

Capital relationship:

No reportable information

Personal relationship:

No reportable information

Business relationship:

No reportable information

 

4. Outlook

The effects of this alliance on the business of KAGA ELECTRONICS will be reported as soon

as a decision is made.