2006

ESTABLISHMENT OF LOCAL SERVICE COMPANY FOR CINCOM SERIES, COMPACT CNC LATHE IN BRAZIL

Jul. 25. 2006
Marubeni Corporation、Citizen Watch Co., Ltd.

Marubeni Citizen Cincom Inc. (“MCC”), a joint corporation between Marubeni Corporation (President: Nobuo Katsumata) and Citizen Watch Co., Ltd. (President: Makoto Umehara) established jointly with Marubeni Corporation a local service company in Brazil by the name of MCC Machinery Brasil Assistncia Tcnica Ltda. (“MCC Brazil”) for the sale of Cincom Series, Compact CNC lathe machine. This company will start business on August 1. To mark our opening new company, the opening ceremony will be held on 26 July.

Before launching MCC Brazil, sales activities for Brazil have been taken by Marubeni Corporation as the export agent engaging in market development through local dealer. In recent years, however, the market is showing a rapid growth as a result of capital investments especially for the automobile and medical equipment sectors. This has given rise to the need for faster and more aggressive sales promotion.

In response to the situation, MCC, which has already had solid sales records in the North American market, was appointed sales agency rights for the South American market, including Brazil. And to ensure a service and sales support meeting the local demands, the further move has been made to establish a new service company.

Marubeni Corporation and Citizen Watch Co., Ltd. founded the engineering company, Citizen Machinery America Inc. (“CMA”), in December of last year in an endeavor to strengthen the engineering functions and are expanding sales in the North American region as a whole. MCC and CMA aim to make sales of 100M US$ and over by 2008.
Efforts will be made to develop the Brazilian market and expand demand and to conduct surveys and studies to assess the business potential and sales prospects in South American countries other than Brazil.

? Company Profile
MCC Machinery Brasil Assistncia Tcnica Ltda. (“MCC Brazil”)
Address: Av. Indianopolis, 2. 912 Sao Paulo - S.P. Brasil
Established: May 2006
Capital: 100,000 Real (50,000 US$)
Stockholders: MCC- 81%; Marubeni-19%
Representative: Masashi Hiroshige (Marubeni)
Employees: 5 Persons
Business Activities:
?After-service of Compact CNC lathers machine and their peripherals
?Technical support for local customers
?Instruction of customers and dealers engineers
?Management and sales support to dealers

Marubeni Citizen Cincom Inc.
Address: New Jersey State, USA
Established: 1984
Capital: 1 million U.S. dollars
Stockholders: Marubeni- 50%, Citizen Watch- 40%, Marubeni America- 10%
Business activities: Import and sales of machines tool (Compact CNC Lathe machine) manufactured by Citizen Watch Co., Ltd.

Citizen Machinery America Inc.
Address: 68 Moylan Lane, Agawam, Massachusetts, USA
Established: 2005
Capital: 5 million U.S. dollars
Stockholders: Citizen Machinery- 51%, Marubeni Citizen Cincom Inc. - 39%, Marubeni- 10%
Business activities: Development, manufacture and sales of specialized tools for machine tool. Engineering services related to machine tool etc.

ESTABLISHMENT OF LOCAL SERVICE COMPANY FOR CINCOM SERIES, COMPACT CNC LATHE IN BRAZIL

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