OMRON Finalizes Acquisition of SCIENTIFIC TECHNOLOGIES, INC.; Creating Global Market Leader in Safety Business for Factory Automation

Omron Corp. Sep 20, 2006

Tokyo, Japan, Sept. 13, 2006 - (JCN Newswire) - OMRON Corporation (TSE: 6645, ADR: OMRNY) announced on September 13, 2006 that it had completed its previously announced acquisition of 100% of the shares of SCIENTIFIC TECHNOLOGIES, INCORPORATED, ('STI') for a purchase price of US$94 million. The terms of the transaction were approved by the US Securities and Exchange Commission (SEC) on August 24, 2006, and at an extraordinary meeting of STI shareholders held on September 12, 2006. STI's shares were acquired by OMRON MANAGEMENT CENTER OF AMERICA, INCORPORATED, a wholly owned subsidiary of OMRON Corporation, and the newly acquired company has been renamed OMRON SCIENTIFIC TECHNOLOGIES, INCORPORATED ('OSTI').

As a result this acquisition, OMRON becomes the NO.1 player in the 110 billion yen (approx. US$940 million) global safety device market*, which is predicted to grow 15% per year backed by a rising trend for Corporate Social Responsibility (CSR) that stresses not only improved productivity but also workplace safety.

In line with the automation and globalization of production processes, manufacturers have increased their focus on Safety, Quality and the Environment. OMRON, as a primary supplier to industrial workplaces, has responded accordingly. In April of last year, it established a dedicated safety devices division. It enhanced its safety devices lineup of components and networks, and boosted its system solutions capabilities and safety-design consulting services. Now, having completed this latest acquisition, it plans on growing its safety business aggressively, aiming to achieve a three-fold increase in sales from 10 billion yen (US$85 million) in fiscal year 2005 to 30 billion yen (US$255 million) by fiscal year 2008.

STI's products include a wide range of components for safety light curtains, laser scanners, and other safety devices and services, and the company has developed strengths across multiple sectors including the automotive, semiconductor, electronic devices, food processing, chemicals and cosmetics industries.

"In addition to enhancing our product line-up, we plan to accelerate new product development by integrating STI's patented optical applications, expertise in device ruggedization, and value-added services with OMRON's own innovative automation, sensing and control technologies," said Yoshinori Matsueda, the newly appointed CEO of OSTI.

* Market figures are for the fiscal year ended March 31, 2006.



1. Shares Acquired            SCIENTIFIC TECHNOLOGY, INCORPORATED 86%

                              Individual Shareholder 14%



2. Date of Share Acquisition  September 12, 2006

   and Company Name Change



3. New Company Name           OMRON SCIENTIFIC TECHNOLOGIES, INCORPORATED



4. Overview of OMRON SCIENTIFIC TECHNOLOGIES, INCORPORATED



    (1) Main Business Lines   Manufacturing, development, sales, consultation

                              and servicing of safety devices.

    (2) CEO                   YOSHINORI MATSUEDA

                              (Former General Manager of OMRON's Safety Devices

                              Division Marketing Department)

    (3) Paid-in Capital       US$10,000 (Wholly owned by OMRON Management

                              Center of America, Incorporated)

    (4) Location              6550 Dumbarton Circle

                              Fremont, California 94555, USA

    (5) Number of employees   320 employees

    (6) Sales                 US$52,141,000 (for the fiscal year

                              ended December 31, 2005)

About OMRON
Headquartered in Kyoto, Japan, OMRON Corporation 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 the US (Chicago). For more information, visit OMRON's website at www.omron.com

For further information, please visit the OMRON 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