(NOTE) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the Japanese original shall prevail.

Date: November 1, 2022

Company Name: Akebono Brake Industry Co., Ltd.

Representative: Yasuhiro Miyaji, President & CEO

(Securities Code: 7238 TSE Prime Market)

Announcement of Joint Venture Agreement with New Joint Venture Partner

regarding Consolidated Group Subsidiaries in China Taking Effect

On June 16, 2022, Akebono Brake Industry Co., Ltd. (hereby "the Company") published the Announcement Regarding Change in Joint Venture Partner of Consolidated Subsidiary in China, announcing that the joint venture agreements of Akebono Corporation (Guangzhou) and Akebono Corporation (Suzhou), which are the Company's consolidated subsidiaries in China, with ITOCHU Corporation as well as ITOCHU HONG KONG LTD. would be dissolved, and a new joint venture agreement would be signed with Fujiwa Machinery Industry (Kunshan) Co., Ltd. (hereinafter referred to as "Fujiwa Machinery"). The Company hereby announces that after having received approval for the Joint Venture Agreement examination under the China Antimonopoly Law, the agreement has come into effect, and by resolution of the General Meeting of Shareholders of Akebono Corporation (Guangzhou) and Akebono Corporation (Suzhou), held on November 1, 2022, a transfer of shares has been carried out, and the joint venture partner has changed as described below.

1. Outline of of the Company's consolidated subsidiaries

(1)

Company Name

Akebono Corporation (Guangzhou)

Location

No. 8 Hefeng 1st Street, Yonghe Economic Zone og Guangzhou Development District

Guangzhou

Representative

Masaaki Ando, Chairman of the Board

Business Contents

Manufacture and sales of disc brakes and drum brakes

Capital

62 million yuan

Established

October 13, 2004

Shareholding Ratio

Akebono Brake Industry Co., Ltd.

70%

Fujiwa Machinery Industry (Kunshan) Co., Ltd. 30%

(2)

Company Name

Akebono Corporation (Suzhou)

Location

TingLan Road No. 168 ChangYang Street, Industrial Park, Suzhou

Representative

Masaaki Ando, Chairman of the Board

Business Contents

Manufacture and sales of disc brake pads

Capital

74 million yuan

Established

October 13, 2004

Shareholding Ratio

Akebono Brake Industry Co., Ltd.

70%

Fujiwa Machinery Industry (Kunshan) Co., Ltd. 30%

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2. Outline of the new joint venture partner

Company Name

Fujiwa Machinery Industry (Kunshan) Co., Ltd.

Location

No.988 Nanhe Road, Kunshan Economic & Technology Development Zone, Jiangsu

Representative

TSUNG HSU-SHUN, Chairman of the Board

Business Contents

Casting, machining, and assembly of automotive brake parts, drive parts and engine

parts

Capital

36.7 million U.S. dollars

Established

December 22, 1995

Shareholding Ratio

LIOHO INVESTMENT LTD

55% (100% subsidiary of LIOHO MACHINE

WORKS, LTD.)

SUMITOMO CORPORATION

45%

3. Impacts on business performance

This change in the joint venture partner has no significant impact on the consolidated financial results for the fiscal year ending March 31, 2023

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Akebono Brake Industry Co. Ltd. published this content on 01 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2022 05:25:01 UTC.