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Omron To Establish New Sensing And Control Technology Facility In China

KYOTO AND SHANGHAI (August 5, 2004) – Omron Corporation, a global leader in automation, sensing, and control technology, announces that it will establish, as part of its Industrial Automation Business Company (“IAB”), a new facility in Shanghai to strengthen and integrate Chinese design, development and manufacturing functions, and to offer a customer support center. The new facility is expected to come online in the second half of 2006.

Presently, IAB maintains three facilities in Shanghai, each with its own independent design and development technologies, manufacturing, manufacturing management and quality management. Shanghai Omron Automation System Co., Ltd. (OMP) makes programmable logic controllers (PLCs), Omron (Shanghai) Co., Ltd. (OMC) makes sensors, and Omron (Shanghai) Control System Engineering Co., Ltd. (OMH) makes temperature controllers and related equipment. The new facility is intended to integrate the design and development capabilities to expand all IAB business in the Chinese market.

“With this new facility, we are aiming to improve service to our customers with increased cost competitiveness, prompt reaction to local needs, and a customer support center,” said Fumio Tateisi, President of Omron IAB. “We hope to strengthen the quality and logistics of our customer support and services to contribute to the improvement of productivity, efficiency and quality in the Chinese manufacturing industry.”

The new facility will feature a new factory to expand and strengthen Omron’s manufacturing capacity, and the “IAB China Business Center Building” to enhance design, development and local marketing functions. It will include the Customer Support Center, seminar room, training rooms and other facilities. The buildings will be constructed in Pudong area of Shanghai, near the OMP and OMC facilities, and are scheduled for completion by the second half of the Omron fiscal year ending March 2006. Omron will invest approximately 5 billion yen in the facility.

With emphasis on the new the business center and associated functions, and new logistics and information infrastructure, IAB hopes to achieve sales of 50 billion yen in the fiscal year ending March 2008, four-fold sales increase over the fiscal year ended March 2004. IAB also plans to increase personnel (manufacturing, designing, developing, engineering and sales) in China to 2,600 by the fiscal year ending March 2008, up four times from present staffing levels.

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 23,000 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, cash dispensers, 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 U.S. (Chicago). For more information, visit Omron's web site at www.omron.com.

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