Hitachi Metals : De-integration of Lead Frame and Copper Product Businesses

September 30, 2016

Company: Sumitomo Metal Mining Co., Ltd. Representative: Yoshiaki Nakazato, President and Representative Director (Code No. 5713, First Section of the Tokyo Stock Exchange)

Contact: Hideki Motoki, Deputy General Manager, PR & IR Dept.

(TEL: [phone])

Company: Hitachi Metals, Ltd. Representative: Hideaki Takahashi, President and CEO (Code No. 5486, First Section of the Tokyo Stock Exchange)

Contact: Tatsuya Minami, General Manager, Corporate Communications Dept.

(TEL: [phone])

De-integration of Lead Frame and Copper Product Businesses

Sumitomo Metal Mining Co., Ltd. (SMM, Headquarters: Minato-ku, Tokyo, President and Representative Director: Yoshiaki Nakazato) and Hitachi Metals, Ltd. (Hitachi Metals, Headquarters: Minato-ku, Tokyo, President and CEO: Hideaki Takahashi) have reached an agreement for the de-integration of the lead frame and copper product businesses.

1. Overview of Businesses

2. Lead Frame Business

   Hitachi Metals will transfer its 49% interest in SH Materials Co., Ltd. (SH Materials) to SMM in full, and SH Materials will become a wholly owned subsidiary of SMM.

3. Copper Product Business

   SMM will transfer its 50% interest in SH Copper Products Co., Ltd. (SH Copper) to Hitachi Metals in full, and SH Copper will become a wholly owned subsidiary of Hitachi Metals.

4. Schedule

   Share transfer/acquisition: Early January 2017 (tentative)

5. Overview of Affected Companies

6. SH Materials

   (1)	Corporate name	SH Materials Co., Ltd.
   (2)	Headquarters	5-11-3 Shimbashi, Minato-ku, Tokyo
   (3)	Representative	Naoka Inoue, President and Representative Director
   (4)	Business scope	Manufacture and sale of lead frames and related products
   (5)	Capital	¥1 billion (51% SMM, 49% Hitachi Metals)
   (6)	Establishment	January 7, 2013
   (7)	Launch of operations	July 1, 2013

7. SH Copper

   (1)	Corporate name	SH Copper Products Co., Ltd.
   (2)	Headquarters	3550 Kidamari, Tsuchiura, Ibaraki
   (3)	Representative	Fumio Kanaya, President and Representative Director
   (4)	Business scope	Manufacture and sale of copper products (copper strips, copper products for electric applications, and processed copper products)
   (5)	Capital	¥1 billion (50% Hitachi Metals, 50% SMM)
   (6)	Establishment	January 4, 2013
   (7)	Launch of operations	July 1, 2013

8. Impact on Business Results

9. The impact of this matter on consolidated results for the fiscal year ending March 2017 will be minor for both SMM and Hitachi Metals.

   Address inquiries concerning this Press Release to:

   Sumitomo Metal Mining Co., Ltd.

   Public Relations & Investor Relations Department TEL: [phone]

   Hitachi Metals, Ltd.

   Corporate Communications Department

   [e-mail]