デュエルビッツ 評判, Ltd.
Tokyo Stock Exchange No. 5406

Genesis Technology Inc.

Nikko Principal Investments Japan Ltd.

Management Buyout of Genesis Technology

TOKYO (April 22, 2003) – Kobe Steel, Ltd. (TSE: 5406) and Nikko Principal Investments Japan Ltd. (NPI), a wholly owned subsidiary of Nikko Cordial Corporation (TSE: 8603), have agreed that Kobe Steel transfer 20,800 shares (65 percent of the outstanding shares) of its wholly owned subsidiary Genesis Technology Inc. (GTI) to NPI's special-purpose company GTI Holdings, Inc. for 3.5 billion yen on April 25. Simultaneously, GTI's current bank loan will be refinanced by a syndicated loan in the way a typical leveraged buyout is structured. Upon closing, GTI will be no longer consolidated to Kobe Steel's financial statements. It aims to further grow デュエルビッツ 評判n independent semiconductor testing house and go public in the near future.

The transaction is featured デュエルビッツ 評判 management buyout. GTI's management will acquire a portion of GTI's shares, while Kobe Steel will continue to support GTI as its second largest shareholder.

GTI provides semiconductor manufacturers with testing services and is not only one of the largest in Japan but also one of the leading players worldwide. Established in December 1987, GTI started out デュエルビッツ 評判n affiliate of Kobe Steel. Kobe Steel increased its equity in GTI through private placements, acquiring the portions held by other shareholders, and fully acquired GTI's outstanding shares in November 1999.

Following an outsourcing trend in the semiconductor industry, GTI's business steadily expanded over the years, with testing facilities in Iruma-gun, Saitama; Nishiwaki, Hyogo; and Hayami-gun, Oita. Sales in the year ended in March 2003 are expected to reach 11 billion yen.

Kobe Steel has been allocating its resources under a policy of "selection and consolidation" to strengthen its profit base. Following this policy, in 2001 Kobe Steel withdrew from semiconductor manufacturing. デュエルビッツ 評判 result, GTI's operations now have relatively small synergies to those of the Kobe Steel Group. However, as the outsourcing trend in semiconductor testing is expected to continue, Kobe Steel and GTI management have decided to go for a management buyout of GTI following NPI's proposal. デュエルビッツ 評判n independent company, GTI will be able to increase the speed of its decision-making and implement a management system that matches the characteristics and size of the business. These changes are anticipated to enable GTI to continue to grow, expediting the way to go public.

NPI is a subsidiary of the Merchant Banking Division of The Nikko Cordial Group. Similar to its sister company Nikko Principal Investments Limited in England, NPI, dedicated to principal investment, invests Nikko's own 100 billion yen capital on a mid-to-long term perspective in private companies and the remaining equity portion, following successful debt re-financing and potentially including the use of securitization. NPI hデュエルビッツ 評判 considerable track record in raising corporate value, based on its extensive in-depth financial expertise and support. デュエルビッツ 評判n MBO partner, NPI aims to help GTI expand its business.

Genesis Technology Inc.

Location	Nishiwaki, Hyogo Prefecture
President	Yuzo Miura
Established	December 1987
Capital	1.9 billion yen
Employees	540
Business	Semiconductor testing services, semiconductor assembly

Nikko Principal Investments Japan Ltd.

Location	Tokyo
President & CEO	Hirofumi Hirano
Established	March 2000
Capital	2.5 billion yen
Business	Merchant banking business, including private equity investment

Management Buyout (MBO)
In a management buyout, the management or employees of a business unit or subsidiary acquire the shares of the business and its management rights in order to continue that business デュエルビッツ 評判n independent entity. An outside financial sponsor commonly serves as the MBO partner and provides financing for the acquisition, as does the management of the business unit. After the MBO, the financial sponsor collaborates in the business development of the new company.