ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that its subsidiary ITOCHU Cable Systems Corporation (headquartered in Shinagawa-ku, Tokyo; Kenji Tsuchiya, President & CEO; hereinafter “ITOCHU Cable Systems”) has agreed to acquire from NAGASE & CO., LTD. (headquartered in Chuo-ku, Tokyo; Hiroshi Nagase, President & CEO; hereinafter “Nagase”) all shares issued by HOEI SANGYO CO., LTD. (headquartered in Chuo-ku, Tokyo; Kazushi Sayanagi, President & CEO; hereinafter “HOEI SANGYO”). Under the agreement, HOEI SANGYO will become a wholly owned subsidiary of ITOCHU Cable Systems.

HOEI SANGYO celebrated its 40th anniversary last year as a company specializing in video and audio business. The company has four branch offices in Japan, and has long experience and a successful track record in delivering post-production, including to broadcasting stations, sales of video tape and of video- and audio-related systems to movie companies and other companies, as well as studio design and various systems design. HOEI SANGYO is a trusted company with expertise in sales and support activities that are finely tuned to respond to customer needs.

ITOCHU Cable Systems is a systems integrator excelling in video and telecommunications-related business that has shown steady growth by responding flexibly to customer needs, irrespective of the size of the organization, by establishing a system that is able to deliver an integrated response from the design to the execution, and repair and maintenance of mainly Japanese and overseas equipment, to its client cable TV companies, broadcasting stations, telecommunications companies, and other organizations in Japan. Regarding the broadcasting sector in particular, for more than 10 years the company has focused on securing orders for broadcasting station systems, and the steady increase in orders for large-scale projects has led the company to position as a priority area the further expansion of its broadcasting station sector business.

Going forward, through the harnessing of the comprehensive capabilities of ITOCHU Cable Systems and HOEI SANGYO in respect of the supply of products to a wide range of customers including broadcasting stations backed by years of trust and proven performance, the ITOCHU Group will work to further strengthen and monetize the systems integrator business in the video and audio area.

HOEI SANGYO CO., LTD.

Established in 1974 as a subsidiary of NAGASE & CO., LTD. for the purpose of selling Fujifilm products, in particular recording media, mainly cinematographic film, to the movie and TV industry. The company later branched out to include the sale of video and audio devices, and system design. Having market access to terrestrial broadcasting stations, post-production, movie companies, and so forth, HOEI SANGYO CO., LTD.. is expanding its business based on its trading network with almost 100 blue chip manufacturers in Japan and overseas and its unique system proposal capability.