Optical components

Omron Completes Optical M&A

TOKYO -- OMRON Corporation (TSE: 6645, US: OMRNY) announced today that it has finalized its agreement with NHK Spring Co., Ltd. and completed the screening process of the Japan Fair Trade Commission to acquire NHK Spring's FTTH(1) optical coupler business on November 1, 2006, as outlined in a preliminary agreement between the two companies that was announced on August 31, 2006. From November 1, the FTTH optical coupler business, which was based in NHK Spring's Yokohama head office, will be operated from OMRON's Kusatsu Factory. OMRON will maintain the existing supply chain for the immediate future to ensure a stable supply of products.

With this acquisition, OMRON aims to expand its business in the FTTH optical coupler market by leveraging the strong customer base of NHK Spring, which is a leading supplier of optical couplers in North America. OMRON also plans to further strengthen its line-up of optical couplers(2) by combining NHK Spring's quartz optical waveguide(3) technology with its own stacked polymer optical waveguide technology to create new high-performance, cost-competitive products. In addition, the acquisition is expected to stimulate sales of OMRON's optical switches and CWDM Mux/Demux Modules.

As a result of this acquisition and the synergies it is expected to generate, OMRON forecasts that its optical communications component business will achieve total sales in fiscal 2006 of approximately 2 billion yen.

Omron Corp. (Tokyo: 6645)

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