TOKYO -- Oki Electric Industry Co., Ltd. (TSE: 6703) today announced that it has reached an agreement with Murata Manufacturing Co., Ltd. to transfer its ownership of the SAW (surface acoustic wave) duplexer business to Murata. The both companies completed the business transfer on June 1, 2003.

"As a top-priority business strategy in electronic devices, Oki has been focusing on system LSIs, an area of expertise for the company. I believe this business transfer is an important milestone for Oki to make further advances toward improving its business structure and effectively allocating resources to focused profitable areas," according to Akira Kamo, President of the Silicon Solutions Company at Oki Electric.

Under the agreement, Oki transfers its technical know-how and some of its business resources for the SAW duplexer business, including development equipment and fixtures. The company grants the license to the intellectual properties required for the operation of the business. Oki also transferred its employees charging in this business to Murata.

Oki intends to discontinue production of SAW diplexers this year. Through the business transfer, the company will further accelerate the concentration of its management resources on the system LSI business, on which Oki places significant emphasis, and aims to achieve stable expansion of the business.

Oki Electric Industry Co. Ltd.