October 11, 2011
Company Name: Murata Manufacturing Co., Ltd.
Representative: Tsuneo Murata, President
(Stock code: TSE/OSE 6981) Inquiries: Yoshihiro Nomura, Public Relations Manager
(TEL: 075-955-6786)

Announcement of Acquisition of VTI Technologies Oy (Finland)

Murata Manufacturing Co., Ltd. (Head office: Kyoto, Japan, hereinafter “Murata”) announces that on October 10, 2011 (local time) it entered into a share sale and purchase agreement with all shareholders of VTI Technologies Oy (Head office: Vantaa, Finland, hereinafter “VTI”) to acquire all the outstanding VTI shares (hereinafter “this acquisition”).
This acquisition is expected to close within six (6) months, pending approval under applicable laws and regulations, and confirmation of the conditions stipulated in the share sale and purchase agreement. Following the completion of this acquisition, VTI will become a wholly owned subsidiary of Murata.

1. Purpose of this acquisition

VTI, established in 1991, is a global leading player specialized in MEMS (Micro Electro Mechanical Systems) technology. The company uses proprietary 3D MEMS technology to develop and manufacture silicon-based capacitance sensors for the automotive industry and medical applications. VTI’s products are used to measure acceleration, inclination, shock, vibration, angular velocity, and pressure. In particular, VTI is the world’s top manufacturer of low-G accelerometers for the automotive industry and cardiac rhythm management (CRM) systems.
MEMS is key technology for reducing device size, increasing accuracy and reliability,
extending service life, increasing strength, achieving lower prices, and reducing power consumption in a variety of end markets. The MEMS market is rapidly expanding, including in a wide range of industrial and consumer applications such as automotive, information and communications equipment, energy, life care, and biotechnology.
By adding VTI’s market leading 3D MEMS products to Murata’s existing sensor product lineup, Murata aims to achieve synergies that will help to strengthen and expand its sensor business.
Murata has a strong presence in the consumer applications market, whereas VTI has focused on building a business base in the automotive industry and medical applications. This acquisition will therefore expand Murata’s development and sales abilities to achieve continued growth in the future.

2. Acquisition structure

The transaction is all cash, and Murata Electronics Europe B.V. (Head office: Hoofddorp, the Netherlands, hereinafter “MEH”), Murata’s wholly owned subsidiary, will be the acquiring vehicle.

3. Acquisition amount

Murata has agreed to acquire 100% of VTI for an enterprise value of approximately 20 billion yen (195 million euro). The transaction will be funded out of MEH’s cash reserves.

4. Completion

This acquisition is expected to close within six (6) months, pending approval under the Antitrust Acts and other applicable laws and regulations of each country, and confirmation of the conditions stipulated in the share sale and purchase agreement.

5. Impact on financial results

This acquisition is expected to have a negligible impact on Murata’s consolidated results in the near-term.
[Corporate overview of VTI]
Company name: VTI Technologies Oy
Location: Myllynkivenkuja 6, FI-01621 Vantaa, Finland
Year of establishment: 1991
Representative: Markku Hirvonen (President & CEO) Capital: 547,000 euro (as of December 31, 2010)
Annual Sales: 76 million euro (for the fiscal year ended December 31, 2010) Business description: Research, development, manufacture and sales of electronic
devices based on 3D MEMS (Micro Electro Mechanical
Systems) technology
Number of employees: 600 (as of December 31, 2010) Accounting closing date: December 31
Main business locations: Vantaa (Finland), Frankfurt (Germany), Pasadena (U.S.A.), Beijing (China), Tokyo (Japan)
Shareholder composition: Investment firm (private equity fund) and management
URL: http://www.vti.fi/en/
[Corporate overview of MEH]
Company name: Murata Electronics Europe B.V.
Location: Daalmeerstraat 4, 2131HC Hoofddorp, the Netherlands
Year of establishment: 2004
Representative: Terrence Paul Churcher (President)
Capital: 10 million euro (as of September 30, 2011) Business description: European headquarters
Shareholder composition: Murata Manufacturing Co., Ltd. 100%
[Corporate overview of Murata Manufacturing Co., Ltd.]
Location: 10-1, Higashikotari 1-chome, Nagaokakyo-shi, Kyoto, Japan Representative: Tsuneo Murata, President and Statutory Representative Director Date of establishment: December 23, 1950 (originally founded in October 1944) Capital: 69,376 million yen (as of September 30, 2011)
Number of employees: 6,964 (consolidated 35,337) (as of March 31, 2011)
Products: Multilayer ceramic capacitors, ceramic filters, ceramic resonators, SAW filters, multilayer devices, dielectric filters, isolators, circuit modules, power supplies, EMI suppression filters, sensors, coils, thermistors, trimmer potentiometers, resistor networks, high voltage resistors, etc.
Annual Sales: 617,954 million yen (consolidated, for the fiscal year ended
March 31, 2011) Consolidated subsidiaries: 23 in Japan, 43 overseas