24th September 2009 - Akebono Press Release on North American Bosch Asset Purchase

Akebono Brake Industry Co., Ltd. announces that after discussions with Robert Bosch GmbH (Stuttgart, Germany, “Bosch GmbH”) regarding the possible acquisition from Robert Bosch LLC (MI, U.S.A., “Bosch LLC”), Bosch GmbH’s North American subsidiary, of part of Bosch LLC’s brake business (“Asset(s)”) through Akebono Corporation (North America) Inc., our North American subsidiary, we have reached agreement, and concluded an Asset Purchase Agreement.

Reason for Transaction

With respect to our North American business, in response to drastic changes in the business environment since 2005 we have implemented a number of restructuring measures including completing the integration of four production plants into two.  Nevertheless, the global downturn has led to a significant decrease in automobile sales, resulting in excess production capacity and intensification of cost competition.  This has meant that additional measures to significantly increase sales as well as further business restructuring have been required to enable the expansion of our business.  Similarly, Bosch llc will continue to carry out its own business restructuring.  Under these circumstances, our acquisition of part of the Bosch llc assets will enable the further adjustment of brake-production capacity in the entire North American region to an appropriate level as well as strengthen our competitiveness through utilizing the brake manufacturing expertise that we have built up over many years.  At the same time, it is anticipated that the transfer of commercial rights will significantly increase sales and profit levels in our North American business as a whole.

Outline of Business to be Acquired

Business and commercial rights to manufacturing and sale in respect of Bosch GmbH's North American subsidiary Bosch llc's foundation brake, disc rotor, brake drum and corner module businesses.  There is no succession of Account Receivables and Account Payables.

Business Results

Forecast of Sales Amount for calendar year 2009: Approx. 580 million US dollars.

Purchase Price and Settlement

Purchase price: 10 million US dollars.

Establishment of Company to Purchase the Asset

A new company named "ABMA, llc" has been established for the purpose of purchase of Assets as a fully owned subsidiary of Akebono (North America)

The conclusion of Asset Purchase Agreement is 23 Setpember 2009.  Closing expected November to end of December 2009.

Source: Akebono Press Release