| April 12, 2004 |
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| Iseki & Co., Ltd. |
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| Hitachi Capital Corporation |
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| To whom it may concern, |
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Notice concerning the formation
of a new business alliance |
Iseki & Co., Ltd. (Head office: Matsuyama, Ehime, Japan; President: Hiroyuki
Nakano, hereafter referred to as "Iseki"), and Hitachi Capital Corporation (Head
office: Nishishinbashi, Minato-ku, Tokyo, Japan; President: Kaichi Murata, hereafter
referred to as "Hitachi Capital"), hereby give notice that an agreement was reached
to form a business alliance for the financial services related to the sales of
the Iseki Group's agricultural machinery, agricultural materials and other products.
Further, in conjunction with this new alliance, credit services will be separated
from Isec Co. Ltd., a consolidated subsidiary of Iseki, and Hitachi Capital will
acquire 90% and Iseki 10% of the issued shares of the new company (Iseki Capital
Co., Ltd. (provisional name), hereafter referred to as "Iseki Capital"). |
| 1. |
Objectives of the new business alliance |
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By transferring Iseki Group's credit services to Hitachi Capital, Iseki will
further reduce its group's interest-bearing liabilities and improve its consolidated
financial position, and will also be able to preferentially offer Hitachi Capital's
broad-ranging financial services to its farming customers. As a result, Iseki
will be able to expand the sales of its products.
Hitachi Capital is actively expanding its "financial services to the farming sector"
as one of the "fields for expansion" targeted in its medium-term management plan.
This alliance will give Hitachi Capital first priority in providing financial
services to the Iseki's customers in the agricultural sector. |
| 2. |
Details of the business alliance |
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| (1) |
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Iseki will transfer any credit business to Iseki Capital. |
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As Iseki Capital's principal shareholder, Hitachi Capital will support Iseki
Capital's financial services. Hitachi Capital will also provide its broad-ranging
financial services to Iseki Group's customer base. |
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Iseki Capital will be responsible for credit services related to the sales
of agricultural machinery and other products of the Iseki Group. |
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(4) |
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Both groups will promote the alliance, and will expand the broad range of
finance activities to Iseki Group customers. More specific details of the alliance
will be discussed later. |
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| 3. |
Schedule (tentative) |
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(1) |
April 12, 2004 |
Signing of agreement on basic terms |
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(2) |
June 1, 2004 |
Foundation of Iseki Capital |
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(3) |
June 15, 2004 |
Transfer of shares |
| For further information, please contact: |
| Hitachi Capital Corporation (Company code: 8586) |
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2-15-12 Nishishinbashi, Minato-ku, Tokyo, Japan 105-8712
Kyoko Okubo, General Manager of CI & Public Relations Department Marketing Dept.
Tel: +81 3 3503 2118 Fax: +81 3 3503 2343 |
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| Iseki & Co., Ltd. (Company code: 6310) |
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5-3-14 Nishi-Nippori, Arakawa-ku, Tokyo, Japan 116-8541
Masahiro Tokunaga, General Manager of Corporate Planning Department
Tel: +81 3 5604 7715 Fax: +81 3 5604 7707 |
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