Nippon Electric Glass Co., Ltd. decided at the Board of Directors Meeting held to dissolve Electric Glass (Korea) Co., Ltd. (EGKr), one of the consolidated subsidiaries, as part of the structural reform of the display business. Details are as follows: In line with the shift of the flat panel displays (FPDs)-related market to China, in order to strengthen its business foundation in China, the Group has worked to increase production capacity by building a consistent production system, from melting and forming to processing, in Xiamen City and to create a production and supply system by establishing processing bases in major regions. Meanwhile, demand is shrinking in the South Korean market, and the performance of EGKr, a consolidatedsubsidiary of the company, is rapidly deteriorating due to decreased sales and the impact of higher costs associated with lower operating rates.

Under these circumstances, company have decided to dissolve EGKr after comprehensively considering the outlook for future demand in the South Korean market, the profitability of continuing its business, and other factors. Going forward, company will concentrate the management resources on business development in the Chinese market and the development of high value-added products. Company will also strive to strengthen the competitiveness of the display business by accelerating the horizontal development of innovative manufacturing processes, including all- electric melting technology.

Paju Electric Glass Co., Ltd., a consolidated subsidiary, which handles the glass processing business for FPDs in South Korea, will continue to operate.Dissolve and start of liquidation at End of July, 2023. End of production at End of June, 2023.