TDK Buys Fujitsu Interest in Disk Head Joint Venture

Fujitsu Limited has come to an agreement with TDK Corporation to terminate their strategic business alliance in regard to hard disk drive heads, and in conjunction, the companies will dissolve their joint-venture agreement regarding HDD head manufacturer TDK FUJITSU Philippines Corporation (TFPC; 66% owned by TDK and 34% owned by Fujitsu).

Reason for Terminating the Business Alliance
In October 2004, Fujitsu and TDK signed a business alliance agreement on the HDD head business. In order to build a structure for technological cooperation, the two companies established the joint-venture TFPC in December 2004 to process and assemble HDD heads. Recently, however, Fujitsu decided to exit the HDD head and HDD businesses, and therefore the two companies have agreed to terminate the business alliance and dissolve the joint-venture agreement.

Details Regarding Termination of Business Alliance
The TFPC joint-venture agreement will be dissolved, and the company will become a wholly owned subsidiary of TDK.

                          
Overview of the Joint Venture

Overview of Counterparty to Business Alliance Termination

Schedule for Termination of Business Alliance: for May 11, 2009.

Impact on Financial Results
This matter will have an insignificant impact on Fujitsu’s financial results.