OMRON Completes Acquisition of Optical Communications Components Business from NHK Spring; Aims to Expand Optical Coupler Business in FTTH Market


Tokyo, Japan, Oct. 31, 2006 -- OMRON Corporation (TSE: 6645, US: OMRNY) announced today that it has finalized its agreement with NHK Spring Co., Ltd. and completed the screening process of the Japan Fair Trade Commission to acquire NHK Spring's FTTH(1) optical coupler business on November 1, 2006, as outlined in a preliminary agreement between the two companies that was announced on August 31, 2006. From November 1, the FTTH optical coupler business, which was based in NHK Spring's Yokohama head office, will be operated from OMRON's Kusatsu Factory. OMRON will maintain the existing supply chain for the immediate future to ensure a stable supply of products.

With this acquisition, OMRON aims to expand its business in the FTTH optical coupler market by leveraging the strong customer base of NHK Spring, which is a leading supplier of optical couplers in North America. OMRON also plans to further strengthen its line-up of optical couplers(2) by combining NHK Spring's quartz optical waveguide(3) technology with its own stacked polymer optical waveguide technology to create new high-performance, cost-competitive products. In addition, the acquisition is expected to stimulate sales of OMRON's optical switches and CWDM Mux/Demux Modules.

As a result of this acquisition and the synergies it is expected to generate, OMRON forecasts that its optical communications component business will achieve total sales in fiscal 2006 of approximately 2 billion yen.

(1) FTTH stands for "Fiber To The Home" and refers to optical fiber-based data communications systems aimed at the consumer market.
(2) An optical coupler is a branching device for optical power. An optical coupler is made by connecting optical fibers to both ends of an optical waveguide. Optical couplers are available with 4, 8, 16, and 32 branches.
(3) An optical waveguide is an element that branches optical power.

Profile of NHK Spring Co., Ltd.

Company name: NHK Spring Co., Ltd.
Business domains: Manufacture and sale of suspension springs, seats, precision
springs, disc drive components, industrial machinery and
equipment (brazed products, ceramic products, pipe supports,
polyurethane sealing products, printed wiring boards, and multi-
level automotive parking systems), and security technologies and
solutions.
President & CEO: Takehiko Amaki
Paid-in Capital: 17.0957 billion yen
Location: 3-10 Fukuura, Kanazawa-ku, Yokohama City
No. of employees: 10,306 (As of March 2006, consolidated total)
Total sales: 383.0 billion yen (consolidated total for FY2005)

About OMRON Corporation

Headquartered in Kyoto, Japan, OMRON Corporation (TSE: 6645; NYSE: OMRNY) is a global leader in the field of automation. Established in 1933 and headed by President and CEO Hisao Sakuta, OMRON has more than 28,000 employees in over 35 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components, social systems (ticket gate machines, ticket vending machines, and traffic control) and healthcare. The company is divided into five regions and head offices are in Japan (Kyoto), Asia Pacific (Singapore), China (Shanghai), Europe (Amsterdam) and US (Chicago). For more information, visit OMRON's website at www.omron.com

For further information, please visit the OMRON Corporation home page at: www.omron.com

Contact
OMRON Corporation
Corporate Brand Communications Department
James Seddon
Email: james_seddon@omron.co.jp
Phone: +81-3-3436-7202
Fax: +81-3-3436-7029

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