News Release

Mar 31, 2015
Tsutomu Tokodai
President and COO
Kyosan Electric Mfg Co., Ltd.

Acquisition of shares of Indian corporation

We hereby announce that on March 18, 2015 we concluded a contract to acquire the shares of an Indian corporation called TVM Signalling and Transportation Systems Private Limited (hereinafter TSTS), and the details are as follows.
1. Reason for the acquisition of shares
TSTS is an important company that collaborates with us and is responsible for the local production of our electronic interlocking device for the Indian market. From the viewpoint of expanding our business in the Indian market in future, we will acquire its shares and make it into one of our equity method affiliates.
2. Overview of the company that will become our equity method affiliate

(1) Trade name

TVM Signalling and Transportation Systems Private Limited

(2) Location

Bangalore, India

(3) Post and name of representative

Managing Director Petchimuthu Gopalakrishnan

(4) Business description

Design of railway signals and communication and power systems; development of software; testing, etc.

(5) Capital

(as of March 31, 2014)

2.5 million INR

(6) Date of establishment

May 25, 2009

(7) Most recent results of operations and financial condition of the company (fiscal year ended March 31, 2014)

Net assets

30 million INR

Total assets

234 million INR

Sales

318 million INR

Net income

8.7 million INR

3. Number of shares to acquire, and status of shares owned before and after acquisition

(1) Number of shares held before change in status of TSTS

0 (Holding ratio 0%)

(2) Number of shares to acquire

104,744 (including 58,071 shares to be newly issued)

(3) Number of shares held after change in status of TSTS

104,744 (Holding ratio 34%)

4. Schedule

(1) Date of the contract

March 18, 2015

(2) Date of execution of the contract

April 2015

5. Future outlook
We expect that the impact of this share acquisition on the consolidated results of the Company's Group will be minor, but we will disclose information in a timely manner if we determine that there will be an impact on our future business performance.

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