Toppan Printing Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President and Representative director: Naoki Adachi; hereinafter referred to as Toppan Printing) and Hitachi Cable, Ltd. (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Norio Sato; hereinafter referred to as Hitachi Cable) have reached a basic agreement on the transfer of Hitachi Cable's RFID (Radio Frequency Identification: radio frequency automatic identification technology) operations to Toppan Printing.

The transfer is scheduled to occur on October 1, when Toppan printing takes over Hitachi Cable's manufacturing facility, production techniques and know-how, business rights, and intellectual property rights.

Overview of the operations to be transferred:

The operations to be transferred are based on RF tags that employ the 125kHz frequency for long-range access and use coil antennas. The 125kHz RF tags have many advantages such as long reading distance, wide reading range, and the flexibility to accommodate products of virtually any shape. They are also water-resistant and stain-proof and can send information even when shielded. Making full use of these features, Hitachi Cable has worked to develop RF tags for use in controlled entry systems, inventory control, production management, and pedestrian ITS.

Goals:

- Toppan Printing seeks to satisfy the increasingly diverse needs of its customers by taking over Hitachi Cable's 125 kHz RF tag operations, thereby strengthening its already reputable 13.56 MHz and 2.45 GHz product lineup.

- Toppan Printing seeks to expand its RF tag operations by taking over Hitachi Cable's contracts and customer accounts.

- By withdrawing from RF tag operations, Hitachi Cable is seeking to reinforce its management base as part of a strategic selection of operation and focused management efforts it is currently promoting.