March 28, 2011

Company Name: Asahi Glass Company, Limited
President & CEO: Kazuhiko Ishimura
(Code Number: 5201; TSE 1st section)
Contact: Toshihiro Ueda, General Manager,
Corporate Communications & Investor Relations
(Tel: +81-3-3218-5509)

The AGC Group’s Restoration Status

Following the previous announcement on March 14 regarding the impact of the
earthquake, AGC (Asahi Glass Co., Ltd.; Headquarters: Tokyo; President & CEO:
Kazuhiko Ishimura) announces an update on the Group’s restoration efforts as follows.
The AGC Group is a raw materials manufacturer that produces chemicals that are
indispensable for sustaining lifeline utilities, glass that is essential for the restoration of
disaster-affected areas, and other wide range of products such as housing, automobiles
and electronics that are deeply rooted in our lifestyle. The Group will continue to exert
every possible effort to restore the affected facilities and support the reconstruction of
affected areas.

1. Employees
AGC has confirmed the safety of all AGC Group employees. Several employees
were slightly injured during the disaster.

2. Facilities
The following is the current status of disaster-affected facilities.

(1) AGC Asahi Glass Kashima Plant (Kamisu, Ibaraki prefecture)
Main products: Architectural glass and chemicals
Architectural Glass:
There was damage to a part of the float glass facility for architectural flat glass,
and production has been suspended to date. As a result of the company’s
recovery efforts, the repair work is expected to be completed in a few days.
AGC will continue restoration operations, aiming to restart production in mid
April.

Chemicals:
There was also some damage to the manufacturing/shipment facilities for
chemicals. Placing a particular priority on sodium bicarbonate that is used for
ethical drugs, AGC has already restarted shipments of the product from
inventories and is steadily preparing for production restart. Operations will
resume gradually as soon as the supply of electricity, raw materials and fuels for
manufacturing activities starts.

In addition, the loading berth used both for shipments of chemicals and for
incoming shipments of raw materials for architectural float glass and chemicals
has been damaged and a part of the facility cannot be used. To solve this
problem, AGC is currently arranging alternative shipping/receiving methods.

(2) AGC Asahi Glass Chiba Plant (Ichihara, Chiba prefecture)
Main products: Chemicals
Due to a fire on the premises of a neighboring factory, AGC had voluntarily
restricted access to the plant until March 14. After the restriction was lifted,
AGC checked the status of the production facilities and conducted restoration
operations. AGC placed priority on sodium hypochlorite, which is used for
disinfection of drinking water, and restarted shipments of the product from
inventory on March 17 and resumed production on March 20. Also, production
of caustic soda, which is a raw material for sodium hypochlorite, and some
other products has resumed as the in-house power generation facilities reopened
on March 23. AGC will gradually resume production of the rest of the products
as soon as electricity is secured for operations.

(3) AGC Display Glass Yonezawa (Yonezawa, Yamagata prefecture)
Main products: Small/Mid-sized LCD glass substrates
There was no critical damage to the building facilities of AGC Display Glass
Yonezawa, which processes small/mid-sized LCD glass substrates, and
production has resumed/continued. Meanwhile, among the company’s
outsourcers what handle a part of its processing operations, some building
facilities have been damaged, and urgent restoration work is underway.

(4) AGC Electronics Koriyama Plant (Koriyama, Fukushima prefecture)
Main products: Optoelectronics materials and semiconductor related
materials
AGC conducted restoration work and has resumed production of some products
since late March. The plant will be able to resume production of all products in
two to three weeks.

Production had been suspended at some of the plants for architectural processed
glass in Tohoku/North Kanto region. At those locations, excluding the plants near
the epicenters of the earthquake, restoration work has been completed and
production has resumed.

3. Shipments
(1) Glass
Until the operations of AGC Kashima plant resume, AGC will allocate existing
inventories and shipments from other AGC Group’s plants in and outside the
country and make the utmost effort to prevent a supply shortage of architectural
glass. While some variations of a certain products took time to ship from other
plants and AGC had to limit accepting some orders immediately after the
earthquake, the Group has already resumed order placement for those
variations.

(2) Electronics
The impacts of the earthquakes and tsunamis are limited to small/mid-sized
LCD glass substrates, and it is considered that impacts on AGC Group’s overall
flat panel display (FPD) business will be limited.

(3) Chemicals
At AGC Kashima plant, the major issue is how to secure the supply of
electricity, raw materials and fuels, and AGC will continue discussing with
relevant organizations to seek solutions on this matter. Also, the damage to the
loading berth has hindered product shipments and incoming shipments of raw
materials and fuels. AGC will respond to the situation by arranging an
alternative shipping/receiving method.
At AGC Chiba plant, shipments of a certain products have already started as
mentioned the above. AGC will continue discussing with relevant organizations
to secure electricity supply, and strive to resume production for all the products
at the plant.

4. Financial impacts on the AGC Group’s business performance
As mentioned above, AGC exerts its full effort toward restoration of each business
operation. At the same time, AGC leverages its group-wide strength by effectively
providing production support from overseas offices and plants through its global
network.
In terms of estimated damage from the disaster, AGC expects that the restoration
costs will not become enormous under the current circumstances. At this moment,
however, it is difficult to accurately assess the financial impacts on the Group’s
business performance due to the factors such as uncertainty about the country’s
future economic conditions. AGC will announce the financial impact on its
performance as soon as the figures have been confirmed.

5. Electricity saving measures
In consideration of the ongoing serious electricity shortage, the AGC Group will
cooperate in the nationwide electricity-saving efforts by reducing electricity use and
implementing operation adjustment at Group’s plants.