April 26, 2010

Nihon Inter Electronics Corporation
Masao Ishii, President and Representative Director
(Stock Code: 6974 on TSE First Section）
Inquiries:
Itsuo Mori, Manager of Management
Planning Division at Head Office
(Tel: 0463-84-8015)

Application for and Acceptance of Business Revitalization Procedures
and Outline of Proposed Business Revitalization Plan

In accordance with the mid-term management plan covering from April 2007 to March 2010, we have
focused management resources on applications that are expected to grow strongly in future and strived to
enhance our corporate value in the following three markets: the market of IT and digital appliances, the
market of electrical components or related equipments for automobile, and the market of industrial equipment
and clean energy. However, it is likely that we have no choice but to register current net loss in a substantial
amount for three consecutive terms due to the difficulties in recouping our strategic investment and in
restructuring our business so as to address globalization, in addition to the simultaneous global recession then
occurred leading us to a significant decrease in our sales.
Under this increasingly severe business environment, we have decided to apply for commencement of
consensual business revitalization alternative dispute resolution procedures as prescribed in the Act on
Special Measures for Industrial Revitalization (the “Business Revitalization Procedures”) in order to perform
a drastic revision of the business structure as well as to improve profit structure and financial standing with
the goal of revitalizing our business.
As of April 26, 2010, we officially applied for the Business Revitalization Proceeding to and were
accepted by the Japanese Association of Turnaround Professionals (the “JATP”, a trade association certified
by the Minister of Justice as a professional on alternative dispute resolution and a trade association certified
by the Minister of Economy, Trade and Industry as a professional of business revitalization procedures). On
this same day, we sent a “Notice of Suspension (including Suspension against Repayment of Principal)” to
our financial institution creditors under the name of Nihon Inter Electronics Corporation and JATP.
The Business Revitalization Procedures is to be proceeded mainly with our financial institution
creditors, etc., and thus will not affect customers that have business relations with us and/or our subsidiaries.
While continuing our production and business activities as before, we will formulate a proposed
business revitalization plan, discussing with all of our financial institution creditors and in accordance with

the investigation, instruction or advice from JATP from a fair and neutral position. The outline of our
current proposed business revitalization plan is hereto attached.
We are now more committed and dedicated than ever to devote every effort to become a respectable
company. We deeply appreciate kind understanding of the shareholders and financial institution creditors.
The anticipated time schedule for the Business Revitalization Procedures is as follows:
・ May 10, 2010 ― The 1
st
Creditors Meeting (explanation of the outline of the proposed business
revitalization plan and confirmation on the suspension of repayments)
・ May 25, 2010 ― The 2
nd
Creditors Meeting (discussion on the proposed business revitalization
plan)
・ June 22, 2010 ― The 3
rd
Creditors Meeting (resolution on the proposed business revitalization
plan)

Attachment
Outline of Business Revitalization Plan

1.
Outline of Business Structure
We will start to dramatically overhaul our business structure specifically in business areas of
consumer products, industrial products, and merchandizing activities, eyeing the possibility of
spinning off these areas into separate companies respectively under the new system.
(1)
As for the area of consumer products, we will convert to a new business model based on eight
inch factories, focusing on outsourcing.
(i)

We will dramatically overhaul the manufacturing structure.
(ii)

We will pursue expanding our sales in Chinese regions, utilizing foundries and
manufacturers specialized in post process.
(iii)

We will enhance our sales system in Chinese regions.
(2)
As for the area of industrial products, we will make enhancement by concentrating resources
thereinto and by pursuing cooperation.
(i)

We will expand our sales of and upgrade the lines of modules in the environment
conscious market and new energy market.
(ii)

We will pursue developing and manufacturing modules fabricated by molding process.
(iii)

We will enhance our sales system in Chinese regions.
(3)
As for the area of merchandizing activities, we will improve our earning capacity, focusing on
solution business. In addition, we will concurrently start to restructure our operations, eying
the possibility of spinning off these areas into separate companies.

2.
Financial Support in the Business Revitalization Procedures
In the Business Revitalization Procedures, concurrently with the efforts to increase our earning
capacity and damaged equity capital by means of reorganizing the business structure as mentioned
above in paragraph 1, we will ask our financial institution creditors for financial support, including
canceling their loans partly in exchange for acquiring equity in our company (the “debt-for equity
swap”) for purposes of reducing excessive interest-bearing debt which is a major financial issue in
this Business Revitalization Procedures. We are not expecting to make any offer for debt-forgiveness.

3.
Responsibility of Management and Shareholders
(1) Responsibility of Management
Mr. Ishii Masao, the current representative director and president of our company, will resign from
office once the Business Revitalization Plan is approved. We will make report at an appropriate time
as for the new management structure including the commitment of other directors, after taking into
consideration the opinions of shareholders and financial institution creditors as well as the intention of
turnaround professional.

(2) Responsibility of Shareholders
We are expecting to increase our capital by allocating new shares to overseas investors or
entrepreneurs, etc., in which case the value of current shareholders may be diluted. Your
understanding is greatly appreciated. We are not expecting to make any offer to our current
shareholders for capital reduction at this moment.
In addition, we are planning, in principal, to maintain our shares to be listed, with in mind the results
of our efforts to enhance the feasibility of capital increase and to secure means of investment recovery
through asking our financial institution creditors for canceling their loans partly in exchange for
acquiring equity in our company (the “debt-for equity swap”).

4.
Management Plan with Numerical Targets; Financial Plan; and Repayment Plan of Outstanding Debt,
etc. in Business Revitalization Procedures
As for our management plan setting numerical targets, etc. shall be formulated through negotiation
with our financial institution creditors in this Business Revitalization Procedures. We will inform you
of the contents thereof once they are fixed.

5. Future
Prospects
Though we are supposing to record restructuring expenses associated with this Business
Revitalization Procedures as extraordinary loss, the actual results of our business performance for the
whole financial year (the expectations of which had been published on November 9, 2009) have not
yet been finalized. We will inform you thereof immediately once finalized.
The financial reports for the business year ending in March (regarding the business year from April 1,
2009 through March 31, 2010) are to be disclosed on May 11, 2010.

-End of Document-