Shareholder Memo From April through March of the following

[Shareholder Memo] From April 1 through March 31 of the following year June Year-end dividend March 31 Interim dividend September 30 •Method of official announcement: We will post electronic public announcements to the following URL: http://www.moritex.co.jp *1 In case we are unable to post an announcement via electronic public announcement due to unavoidable circumstances, we will post the announcement on the Nihon Keizai Shimbun. *2 In lieu of official announcement of settlement of accounts, we disclose our balance sheet and income statement via EDINET (Electronic disclosure system regarding disclosure documents such as financial statements based on the Securities and Exchange Law). •Accounting year : •Annual meeting of shareholders: •Record date: •Transfer of shares (Manager of list of shareholders): 3-33-1, Shiba, Minato-ku, Tokyo The Chuo Mitsui Trust and Banking Company, Main Branch •Stock handling office (Mailing address, Telephone inquiry contact): 2-8-4, Izumi, Suginami-ku, Tokyo 168-0063, Japan The Chuo Mitsui Trust and Banking Company, Securities Agent Department TEL. 0120-78-2031 (toll free) •Agent for stock handling office: Nationwide branches of Chuo Mitsui Trust and Banking Head office and nationwide branches of Japan Securities Agents, Ltd. Moritex Head Office Bldg 3-1-14, Jingu-Mae, Shibuya-ku, Tokyo 150-0001, Japan TEL. 03-3401-9711 (Main phone number) Website: http://www.moritex.co.jp New Medium-Term Management Plan 35th Business Report To Shareholders New Medium-term Management Plan 35th Period Financial Overview Overview of Settlement of Accounts (Consolidated/Non-consolidated) Constitution of Sales by Business (Consolidated) Overview of Sales Optical application equipment business Machine vision system/ Image equipment-related/ Optical communications-related equipment/ Test/Measurement equipment 1 2 3 4 4 4 To Shareholders New Medium-Term Management Plan (Global 10) With the medium-term management plan “Global 10,” we will further reinforce Moritex Groupʼs strengths, aim for “consolidated sales of 21 billion yen and operating margin of 10% in the final fiscal year of the plan (year ending March 2010)” and work towards expanding business in the global market. Further, the Company will strive to stabilize profitability and build a foundation for significant development. FY to March 2008 (Fiscal 2007) Start of strengthening foundation for significant development FY to March 2009 (Fiscal 2008) Establishment of continuous profitability FY to March 2010 (Fiscal 2009) Start of runup towards leap I hope that all bodes well for the shareholders of our Company. I would also like to express my gratitude for your exceptionally good support of our 5 business activities. The Company has completed the settlement of accounts for the 35th Functional Materials Business Bio-related Business Other Businesses Financial Statements (Consolidated) Balance Sheet (Abstract) Income Statement (Abstract) Statement on changes in in shareholders' equity, etc. Cash Flow Statement (Abstract) Major subsidiaries and affiliates Financial Statement (Non-consolidated) Balance Sheet (Abstract) Income Statement (Abstract) Statement on changes in shareholders’ equity, etc. Condition of Shares Share Distribution Status Shift in Business Results (Consolidated) as Seen in Graphs Topics Corporate Profile Corporate profile/Offices/ Major subsidiaries and affiliates 6 6 6 Accounting Period (from April 1, 2006 through March 31, 2007) as of March 31, 2007. We hereby report to you the business overview as well as various items concerning the settlement of accounts for the accounting period. Towards leap 7 7 8 Target for New Medium-Term Management Plan 8 8 Consolidated Sales (100 million yen) Consolidated sales Operating margin Operating margin 250 9 9 10 14.0 210 200 190 150 124 104 83 Non-consolidated(Reference) 12.0 10.0 8.0 6.0 4.0 2.0 0.0 165 126 139 146 147 168 150 10 10 11 12 Moritex Corporation President and CEO Shigeyuki Morita 100 50 13 14 0 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 (plan) (plan) (plan) Shareholder Memo 15 New Medium-Term Management Plan 35th Period Financial Overview Strategy/Direction of Medium-Term Management Plan [Strategy for Making Plan] Draft a feasible plan from a long-term standpoint to achieve steady growth in the future years. Build a foundation that draws the strength of Moritex to the maximum and accelerates speed of growth. Strengthening of business of focus through re-distribution of management resources Strengthening of communication with shareholders Pursuit of QCD Q: quality C: cost D: delivery Japanʼs economy during this accounting period was on a recovery/expansionary path due to an increase in private capital investment, improved job market, recovery in personal consumption, etc. against the backdrop of robust corporate earnings. As for the semiconductor manufacturing device industry and electronic component mounting device industry, which are the Companyʼs major customers, active capital investment enthusiasm was seen from manufacturers in general. The Machine Vision System Products Division, which accounts for around 60% of sales, saw active capital investment (semiconductor manufacturing device industry/electronic component mounting device industry) in personal computers in line with the launch of new game machines/new OS. As for the Image Equipment-related Division, skin counseling systems for the cosmetics industry saw strong orders due to favorable product feedbacks from clients. But the division saw a large profit decline from the previous year due to persistent demand for price reduction and larger-than-expected increase in manufacturing costs stemming from factors including changes in product specifications. As for other businesses, the Company has terminated the “Beads Shop Cavian” targeting consumers as of the end of March this year, based upon the judgment that it would be difficult to turn the business into profit. In line with the termination of the business, the Company has booked 1,098 million yen in business consolidation losses, and 65 million yen in fixed assets linked to closed stores as losses due to impairment. In addition, in view of the “Accounting standards for valuation principle for inventory assets” scheduled to be applied in the following accounting period, the Company has closely inspected in-house assets. For the purpose of boosting financial strength with the early application of the accounting standard, the Company has booked 465 million yen as disposal losses for inventory assets including inventory in the applied optics equipment business for which low sales are expected. As a result of the above measures, sales for this consolidated accounting period came to 16,510 million yen (up 11.8% from the previous year). In terms of profit, operating profit stood at 154 million yen (down 28.9% from the previous year), ordinary profit at 358 million yen (down 10.9% from the previous year) and current net loss at 1,495 million yen. (Unit: million yen) Aim for the Company’s continuous growth and enhancement of corporate value over the long term, and build a foundation in the next three years for significant growth. Consideration of rebuilding capital structure Moritex New Medium-Term Management Plan “Global 10” Overview of Settlement of Accounts Consolidated Current Term(35th Term) Sales Operating profit Previous Term Non-consolidated Current Term(35th Term) ( From April 2007 through ) March 2010 Promotion of overseas development Previous Term Strengthening of corporate governance Promotion of new product development/ cultivation of new markets Ordinary profit Current net income Current net earnings per share (yen) Total assets Net assets Three Pillars of Moritex Moritex currently has three large pillars of business. The following is a brief description of the overview of each business. Net assets per share (yen) Rate of return on equity 16,510 154 358 1,495 109.21 15,072 7,680 550.87 18.1 14,765 216 402 165 13.71 16,541 8,901 674.61 2.0 13,755 21 192 1,662 121.19 14,320 7,559 546.78 20.0 12,672 80 271 64 5.38 15,942 9,023 683.52 0.8 Constitution of Sales by Business (Consolidated) Machine vision system Moritex supplies machine vision systems (lenses, illumination, cameras) indispensable to semiconductor manufacturing devices and LCD manufacturing devices. Products are used in the food/cosmetics/pharmaceutical industries for quality inspection for flaws, dirt, tamper, etc. The Company manufactures measurement equipment utilizing sensor equipped with original technology for major cosmetics companies in Japan and abroad. The Company develops software that determines skin condition from image and automatically conducts analysis. The Company has started providing treatment methods catering to each individual and analysis and testing services useful for preventive medicine and early treatment through universities/medical institutions/large drug makers. The Company manufactures separation/refining device for medicines, etc. 35th Term(Year to March 2007) 34th Term(Year to March 2006) 33rd Term(Year to March 2005) Image equipment Optical Test/Measurement communication-related equipment equipment Functional materials Bio-related Other 10,281 9,027 9,015 0 1,000 2,000 2,225 1,912 1,638 3,000 4,000 5,000 591 586 538 6,000 7,000 44 65 166 8,000 9,000 10,000 1,709 1,471 1,295 11,000 12,000 13,000 1,057 963 979 14,000 15,000 16,000 600 738 982 17,000 18,000 Machine vision system Image equipment Optical communication-related equipment Test/Measurement equipment Functional materials Unit: million yen 35th Term (Year to March 2007) 10,281 2,225 591 44 1,709 1,057 600 16,510 The Company's products are useful for improvement of manufacturing process and inspection process for all sorts of products and supports Japan, the world's technological powerhouse. The Company is especially supporting lifestyles of women, as an essential item in cosmetics sales and counseling. The Company is helping advancement in healthcare and medicine to support improvement in people's quality of life. Bio-related Other 34th Term (Year to March 2006) 9,027 1,912 586 65 1,471 963 738 14,765 33rd Term (Year to March 2005) 9,015 1,638 538 1,295 166 979 982 14,616 Overview of Sales Overview of Sales Optical Application Equipment Business Functional Materials Business Given the expansionary trend of the economy, overall sales were strong for various medical-use tubes, highly functional Teflon stickers (Bal seals) for the bio/medical equipment arena and standard particles for the semiconductor industry. Further, sales increased sharply for high-purity quartz backed by FTTH (Fiber to the home) demand growth, but profit grew only slightly since sales grew for high-purity quartz that have a low profit ratio. As a result, sales for the division came to 1,709 million yen, up 16.1% from the previous year. Bio-related Business Sales of mainstay product “Purif” series, automatic refining device were strong, and sales of consumables for the “Purif” series were steady as well. Order receipts have gradually increased for the gene manifestation SNPs analysis service, which was launched in the previous accounting period. As a result, the division’s sales came to 1,057 million yen, up 9.8% from the previous year. Other Businesses “Beads Shop Cavian,” the business geared toward consumers, had seen sales growth since its launch, but fixed costs largely exceeded initial expectations. The business posted continued operating losses due to factors including the fading of the beads trend and the Company’s lack of know-how in consumer-oriented business. The Company has attempted various measures to revamp the business, including consolidation of stores, mail-order sales and review of purchasing systems and engaged in activities toward improving profitability, but decided to terminate the business because of the extreme difficulty in making it profitable. All stores have been closed and inventory was cleared by the end of this consolidated accounting period. As a result, the division’s sales came to 600 million yen, down 18.6% from the previous year. Machine Vision System The semiconductor manufacturing device industry and electronic component mounting device industry entered a correctional phase in the 4th quarter, but the capital investment enthusiasm of manufacturers were strong as a whole. Thus, sales grew sharply centered on products tailored to customer specifications. However, the LCD manufacturing device industry saw a slowdown in investment in production facilities as a backlash of strong sales in the previous term. Thus, sales were sluggish, but profit increased from the previous term since operating margin hovered at similar levels. As a result, sales of the division came to 10,281 million yen, up 13.9% from the previous consolidated accounting year. Image Equipment-related Sales of cosmetic-purpose skin counseling systems for major cosmetics makers grew from the previous accounting year due to favorable feedback from clients regarding products and a large-lot order received for replacement purposes. However, given the persistent demand for price cuts and increase in manufacturing costs due to factors including changes in specifications, profit declined sharply from the previous year. As for CCD microscopes (Scopeman) for the industrial products arena, profit declined due to renovation costs for the technical improvements made to mainstay product “Scopeman MS-804” and development costs for new product “Scopeman MSX-500Di.” As a result of the above, the division’s sales came to 2,225 million yen, up 16.3% from the previous year. Optical Communications-related Equipment In the optical communications market, demand for components such as lenses are recovering, but unit sales prices are on a downtrend. In terms of investment on module-manufacturing facilities, there is small renewal demand, but fresh capital investment is hovering at lower levels. As a result, the division’s sales came to 591 million yen, up 0.8% from the previous year. Test/Measurement Equipment This division applies the optical technology of the Company and handles sales of products such as “ellipsometers,” devices that evaluate thin films, the “Wave checker,” a system to inspect the spectroscopic characterization of optical components and “high-speed 3D image processing inspection systems” that conduct inline configuration tests. This accounting period, the Company has newly focused on selling “LayScan,” a liquid crystal molecular orientation film test equipment. However, given that this is the world’s first inline-type liquid crystal molecular orientation film test equipment, it required time to build up the data. Thus, sales results will be carried over to the following accounting period and beyond. In addition, the division has developed the “LayScan-Labo,” which is the desktop liquid crystal molecular orientation film test equipment, a smaller version of “LayScan,” as well as “IRise (R)700 IR Vision System,” an infrared transmission testing equipment for silicon devices. As a result, the division’s sales stayed at 44 million yen, down 31.4% from the previous year. Financial Statement (Consolidated) Financial Statement (Consolidated) Balance Sheet (Abstract) Account By term Current term (Unit: thousand yen) Income Statement (Abstract) By term Account Current term From April 1, 2006 through March 31, 2007 Statement on changes in shareholders equity, etc. (Unit: thousand yen) (From April 1, 2006 through March 31, 2007) Shareholdersʼ equity Capital Balance as of March 31, 2006 Changes during consolidated accounting period Issuance of new shares due to exercising of share warrant (Unit: thousand yen) Cash Flow Statement (Abstract) Account By term (Unit: thousand yen) From April 1, 2005 through March 31, 2006 Previous term (as of March 31, 2007) (as of March 31, 2006) Previous term From April 1, 2005 through March 31, 2006 Current term Previous term From April 1, 2006 through March 31, 2007 Capital surplus Retained earning Treasury stock Total shareholdersʼ equity Cash flow from operating activities Cash flow from investment activities Cash flow from financial activities Exchange difference of cash and cash equivalents Increase/Decrease (decrease) in cash and cash equivalents Outstanding balance of cash and cash equivalents at beginning of FY Decrease in cash and cash equivalents due to exclusion from consolidated accounting Outstanding balance of cash and cash equivalents at end of FY *Fractions of less than thousand yen are omitted Dividend of surplus Current net losses Disposal of treasury stock Changes (net change) in items other than shareholders’ equity during consolidated accounting period Total change during consolidated accounting period Balance as of March 31, 2007 Valuation/conversion adjustment, etc. Valuation adjustment for other securities Balance as of March 31, 2006 Changes during consolidated accounting period Issuance of new shares due to exercising of share warrant Gain/loss on deferred hedge Exchange rate conversion adjustment Total of valuation/ conversion adjustment Share warrant Minority interest Total net assets Dividend of surplus Current net losses Disposal of treasury stock Changes (net change) in items other than shareholders’ equity during consolidated accounting period Total change during consolidated accounting period Balance as of March 31, 2007 Major subsidiaries and affiliates Company name Voting right ratio Capital (thousand yen) Major business Sales of the Company’s optical fiber products and application equipment in the U.S. region. Purchasing of the Company’s functional products for the U.S. region. Sales of the Company’s products in the European region Moritex U.S.A., Inc. *Fractions of less than thousand yen are omitted 100.0% 100.0% 100.0% 90.0% 87.4% 33.3% 30.0% 21.0% Thousand USD 500 Thousand GBP Sensor Technology Co., Ltd. Moritex U.S.A., Inc. Moritex Europe Ltd. Moritex Sales Corporation KOLC Inc. ' 877 30,000 30,000 Thousand HKD Sales of the Company’s products and commodities Tohoku Moritex Corporation Moritex Europe Ltd. Temporary staffing, job placement, nonlife insurance agent, etc. Manufacture and sales and export/import of Company’s optical fiber and optical application products Manufacture and sales of metal parts and products related to information and telecommunications equipment and OA equipment, and synthetic resin parts and products Sales of the Company’s products and commodities in the Tohoku region. Manufacture of multicomponent glass optical fiber and processing of various optical fiber Development/manufacture and sales of electronics device applying various CCD cameras and sensors Moritex Moritex Precision Corporation Moritex Sales Corporation Moritex Hong Kong Co., Ltd. Moritex Precision Corporation ' 24,000 60,000 50,000 45,000 Tohoku Moritex Corporation Sensor Technology Co., Ltd. Moritex Hong Kong Co., Ltd. KOLC Inc Status of business combinations The Company has scrapped Cavian International Inc. as of late March 2007. *Fractions of less than thousand yen are omitted Financial Statement (Non-consolidated) Financial Statement (Non-consolidated) / Condition of shares Balance Sheet (Abstract) Account By term Current term (Unit: thousand yen) Income Statement (Abstract) By term Account Current term From April 1, 2006 through March 31, 2007 (Unit: thousand yen) Statement on changes in shareholders' equity, etc. (From April 1, 2006 through March 31, 2007) Shareholders equity Capital surplus Capital Balance as of March 31, 2006 Changes during accounting period Issuance of new shares due to exercising of share warrant Incorporation of special depreciation reserve Reversal of special depreciation reserve Dividend of surplus Current net losses Changes (net change) in items other than shareholders’ equity during consolidated accounting period Total change during accounting period Balance as of March 31, 2007 Valuation/conversion adjustment, etc. Gain/loss on Valuation adjustment Total of valuation/ for other securities deferred hedge conversionadjustment Balance as of March 31, 2006 Changes during accounting period Issuance of new shares due to exercising of share warrant Incorporation of special depreciation reserve Reversal of special depreciation reserve Dividend of surplus Current net losses Changes (net change) in items other than shareholders’ equity during consolidated accounting period Total change during accounting period Balance as of March 31, 2007 Capital reserve Earned reserve Retained earning Total of other Total of retained retained earnings earnings Treasury stock (Unit: thousand yen) Previous term Previous term From April 1, 2005 through March 31, 2006 (as of March 31, 2007) (as of March 31, 2006) Total shareholders' equity Share warrant Total net assets Condition of shares *Fractions of less than thousand yen are omitted Share distribution status Status by owner Financial institutions, securities companies 70 Shareholders 20,936 Hundred shares 15.14 Foreign institutions, etc. 39 Shareholders 4,860 Hundred shares 3.52 9,606 Shareholders 138,249 Hundred shares Other corporations 90 Shareholders 19,402 14.03 Individual/other 9,407 Shareholders 93,051 67.31 Number of shares than can be issued: Total number of outstanding shares: Number of shareholders: Major Major shareholder shareholders (Top 10) IDEC Corporation 30,000,000 shares 13,824,928 shares 9,606 shareholders Number of shares held Investment ratio *Fractions of less than thousand yen are omitted 1,564,900 shares Yukoh Morito 1,147,360 shares Japan Trustee Service Bank, Ltd. (as Trustee) 524,700 shares The Master Trust Bank of Japan, Ltd. (as Trustee) 235,500 shares The Dai-Ichi Mutual Life Insurance Company 180,700 shares Mizuho Corporate Bank, Ltd. 180,000 shares Shineikai 171,100 shares Trust & Custody Services Bank, Ltd. 160,200 shares Moritex Employee Holding Group 150,500 shares Goldman Sachs International 124,700 shares 11.32 8.30 3.80 1.70 1.31 1.30 1.24 1.16 1.09 0.90 Status by number of shares held 50,000 4,999,999 shares 27 Shareholders 54,803 Hundred shares 39.64 10,000 49,999 101 Shareholders 18,121 Hundred shares 13.11 5,000 9,999 shares 196 Shareholders 12,011 Hundred shares 8.69 1 499 shares 5,930 Shareholders 11,009 Hundred shares 7.96 9,606 Shareholders 138,249 Hundred shares 500 999 shares 1,320 Shareholders 7,895 Hundred shares 5.71 1,000 4,999 shares 2,032 Shareholders 34,410 Hundred shares 24.89 Shift in Business Results (Consolidated) as Seen in Graphs TOPICS Sales (million yen) 16,510 16,000 14,000 12,000 10,000 8,000 14,616 14,765 Ordinary Profit (million yen) 800 600 402 358 256 Announcement of Desktop Liquid Crystal Molecular Orientation Film Test Equipment “LayScan-Labo” Molecular orientation film testing of LCD panels becomes even more accessible LCD panels, which are major components for the rapidly spreading LCD TV and laptop PCs, LCD displays, etc., are manufactured after going through various processes including the alley process, color filter manufacturing process, cell process and module process. Among the factors that influence the attributes and quality of the LCD panel is the light distribution attribute and uniformity of the liquid crystal molecules of the liquid crystal molecular orientation film, which is made by painting polyimides onto a glass board, firing and rubbing with a roller wrapped around in cloth. Notably, the angle of direction, angle of inclination, and level of light distribution of the molecular orientation film are said to largely impact the performance of the LCD. At FINETECH 2006, Moritex announced and attracted many inquiries for the inline liquid crystal molecular orientation film test equipment “LayScan,” the world s first test equipment that conducts high-speed inline measurement of the anisotropy of refractive index, which indicates the angle of direction, angle of inclination and level of light distribution in liquid crystal molecular orientation films. The desktop liquid crystal molecular orientation film test equipment “LayScan-Labo” was developed in response to the various voices of the customers that have approached us. The Company has made an all-out effort to make a smaller version that would cater to specific use in R&D divisions and quality control divisions, by keeping the same high-precision molecular orientation film testing functions established in LayScan. By reviewing components, the Company has succeeded in a large price cut to enable adoption of the equipment in R&D and quality control divisions. 654.14 674.61 550.87 Infrared Transmission Test Equipment Announcement of the “IRise® 700 IR Vision System” Optimal for transmission test of silicon devices Moritex has developed the infrared transmission test equipment “IRise® 700 IR Vision System.” The infrared transmission test equipment “IRise® 700 IR Vision System” is a small-size and low-priced silicon device testing system that utilizes the attribute of silicon to percolate infrared radiation. It can be used for various silicon-device-testing purposes, including testing of the direct junction of wafers/WLCSP/flip chips and chipping/SAW filter testing after dicing. Despite being a compact system that was assumed for use in R&D and quality control divisions, it is capable of collective evaluation of wafers of up to 200mm, by utilizing stages and high-resolution image bonding technology. The adoption of the electrical zoom lens that covers from low to high magnification (0.75 times to 45 times) enables response to various testing needs. By using the latest development at Moritex, the infrared transmission test equipment “IRise® 700 IR Vision System,” quality control divisions can largely contribute to clarification/improvement in the processes that generate defective goods. The Company believes that in R&D divisions, “IRise® 700 IR Vision System” can largely contribute to moving R&D towards next-generation production line development. Based on this system, Moritex can respond to system proposals that cater to customer needs, such as an automated test system or testing of deviance amount after bonding. 400 6,000 4,000 2,000 0 33rd Accounting period 34th Accounting period 35th Accounting period (current) 200 0 33rd Accounting period 34th Accounting period 35th Accounting period (current) Current Net Income (million yen) 200 100 165 89 1,495 Current Net Earnings per Share (yen) 20 13.71 10 7.89 109.21 0 33rd Accounting period 34th Accounting period 0 33rd Accounting period 34th Accounting period -100 -10 -1,400 -100 -1,500 35th Accounting period (current) -110 35th Accounting period (current) Net Asset (million yen) 18,000 16,541 16,000 14,000 12,000 10,000 8,000 Net Asset per Share 15,072 Moritex Starts Sales of Telecentric Lens by Distinguished German Optical Maker Carl Zeiss Starts handling of 30 types of the VISIONMES® Series, telecentric lens by Carl Zeiss Moritex has reached an agreement with Carl Zeiss (Camera Lens Division) to start sales of the German company’s telecentric lens, the VISIONMES® Series in the Asian region (excluding some areas). The VISIONMES Series adopts the telecentric optical system, in which the size of the subject hardly changes even when the distance between the subject changes from the focal length. It is largely used when using image processing in fields such as defective product discrimination and positioning. Adding Moritex illumination technology to the VISIONMES® Series with low magnification ratio and wide telecentric range makes it possible to provide new test applications using the telecentric lens, not only to the conventional machine vision industry, but also to wide-ranging fields including production lines. 15,396 1,000 800 600 400 (million yen) 6,000 4,000 2,000 0 0 33rd Accounting period 34th Accounting period 35th Accounting period (current) 33rd Accounting period 34th Accounting period 35th Accounting period (current) By using Moritex latest development, the desktop liquid crystal molecular orientation film test equipment “LayScan-Labo,” quality control divisions can largely contribute to clarification/improvement in the processes that generate defective goods. The Company believes that in R&D divisions, LayScan-Labo can largely contribute to moving R&D towards next-generation production line development. Moritex exhibited this desktop liquid crystal molecular orientation test equipment “LayScan-Labo” at the “17th FINETECH Japan” held at Tokyo Big Sight on April 11-13, 2007 and has started to receive orders. 200 Corporate Profile Corporate Profile Corporate Profile (as of March 31, 2007) Corporate Name Headquarters Established Capital Number of Employees Business Year Major Affiliated Banks Major Subsidiaries and Affiliates Company Executives (As of March 31, 2007) Moritex U.S.A., Inc. President & CEO Vice President Executive Managing Director Director Director Statutory Auditor Auditor Auditor Auditor Chief Operating Officer Operating Officer Operating Officer Operating Officer Operating Officer Operating Officer Operating Officer Shigeyuki Morita Katsumi Orimo Eiji Kamohara Shuichi Nishida Kunishige Harada Kazuo Koshiishi Tetsuya Nakagawa (part-time) Yoshiro Dozono (part-time) Shigenari Ishii (part-time) Shigeyuki Morita Toshio Iwamoto Shuitsu Nishina Goro Horiguchi Tsutomu Kubota Shuji Shikano Takashi Takeshita 6862 Santa Teresa Blvd., San Jose, CA 95119 U.S.A. Established: February 1987 Capital: USD 500 thousand Representative: Shigeyuki Morita, Chairman 14 Signet Court,Swanns Road,Cambridge CB5 8LA,U.K. Established: October 1989 Capital: GBP 877 thousand Representative: Shigeyuki Morita, Chairman 77-87 Wang Lung Street Tsuen Wan,New Territories,Hong Kong Established: March 2000 Capital: HK$24,000 thousand Representative: Jiro Ishii, Chairman 3-10-5 Shibuya, Shibuya-ku, Tokyo, 150-0002, Japan Established: March 2000 Capital: 30 million yen Representative: Masanobu Kimura, President 2-4-10 Shin-ishikawa, Aoba-ku, Yokohama, 225-0012, Japan Established: August 1997 Capital: 30 million yen Representative: Kenji Itou, President 2-2-13 Ebisu, Shibuya-ku, Tokyo, 150-0013, Japan Established: June 2003 Capital: 60 million yen Representative: Takayoshi Koguchi, President 1-5-21 Uesugi, Aoba-ku, Sendai, 980-0011, Japan Zao Factory 1-224, Kawaramae, Aza, Magatake, Zao-machi, Katta-gun, Miyagi, 989-0851, Japan Established: January 1992 Capital: 50 million yen Representative: Tohru Ueda, President 4-9-17, Nakamachi, Atsugi City, Kanagawa, 243-0018 Established: November 1987 Capital: 45 million yen Representative: Masumi Kawakami 1408-363-2100(Main) Moritex Corporation 3-1-14 Jingu-Mae, Shibuya-ku, Tokyo, 150-0001 February 1973 3,320 million yen 404 From April 1 though March 31 of the following year Mizuho Corporate Bank, Ltd. Bank of Tokyo-Mitsubishi UFJ, Ltd. Sumitomo Mitsui Bank, Ltd. Resona Bank, Ltd. Manufacture, sales and export/ import of machine vision systems, image equipment, optical communications-related equipment, bio-related business, functional commodities, optical equipment and related products and commodities 101223-301148(Main) Moritex Europe Ltd. 12439-0968(Main) Moritex Hong Kong Co., Ltd Business Description 103-5766-6870(Main) 25/Moritex Sales Corporation 1045-914-3806(Main) KOLC Inc. 103-5449-8177(Main) Moritex Precision Corporation Offices 3-1-14 Jingu-Mae, Shibuya-ku, Tokyo, 150-0001, Japan Phone: 03-3401-9711 (Main) Saitama Office 9-21-4 Tajima, Sakura-ku, Saitama, 338-0837, Japan Phone : 048-839-2550 (Main) Yaita Office 1052-2 Naka, Yaita City, Tochigi Pref, 329-2135, Japan Phone : 0287-43-5111 (Main) Yokohama 1-3-3 Azamino-minami, Aoba-ku, Yokohama, Technical Center 225-0012,Japan Phone : 045-913-5800 (Main) Tokyo Branch 3-1-14 Jingu-Mae, Shibuya-ku, Tokyo 150-0001, Japan Phone : 03-3401-9756 West-Tokyo Branch 1-25-12 Akebono-cho, Tachikawa City, Tokyo 190-0012,Japan Phone : 042-548-1208 Tsukuba Branch 1-21-8 Matsusiro, Tsukuba City, Ibaraki Pref. 305-0035,Japan Phone : 029-852-1130 North-Kanto Branch 3-3-4 Arajuku-cho, Kawagoe City, Saitama Pref. 350-1124,Japan Phone : 049-247-2251 Headquarters 2-2-17 Sakae, Naka-ku, Nagoya, 460-0008, Japan Phone : 052-232-7871 Kyoto Branch 3F NOA Takamatsuden Bldg, Anekoji-Agaru, Nishinotoin-Dori, Nakagyo-ku, Kyoto 604-8277, Japan Phone : 075-223-3801 Osaka Branch ShinOsaka Doi Bldg, 7-5-25 Nishi-Nakajima, Yodogawa-ku, Osaka, 532-0011, Japan Phone : 06-6838-8426 Fukuoka Branch 1-4-30 Maizuru, Chuo-ku, Fukuoka, 810-0073, Japan Phone : 092-733-3747 Tochigi Sales Office 1052-2 Naka, Yaita City, Tochigi Pref. 329-2135, Japan Phone : 0287-43-1776 Hiroshima Sales Office 2-7-35 Hikari-Machi, Higashi-ku, Hiroshima City 732-0052, Japan Phone : 082-262-2542 Tamagawa 4178-1 Tamagawa, Tokigawa-cho, Hiki-gun, Distribution Center Saitama Pref. 355-0342, Japan Phone : 0493-65-3616 Nagoya Branch Tohoku Moritex Corporation 1022-214-2771(Main) 10224-33-3172(Main) 1046-295-7061(Main) Sensor Technology Co., Ltd. (as of March 2007) Beads Shop Cavian All stores have been closed as of the end of March 2007. Thank you for your continued patronage.