Sharp Corporation ("Sharp"), Toppan Printing Co., Ltd. ("Toppan") and Dai Nippon Printing Co., Ltd. ("DNP") hereby announce that they agreed upon executing a basic agreement with regard to the business integration of the liquid crystal display color filter (LCD color filter) businesses operated by Toppan and Toppan’s subsidiary, Toppan Electronics Products Co., Ltd. (“TEP”), as well as DNP and DNP’s subsidiary, DNP Color Techno Sakai Co., Ltd. (“DNP Color Techno Sakai”) in their Sakai Plants, into Sharp’s subsidiary, Sharp Display Products Corporation ("SDP"), ("Business Integration"). The method of the Business Integration will be determined upon consultation among the parties to this Business Integration.
In addition, Sharp hereby announces that transfer of its subsidiary, SDP, is expected in connection with the Business Integration.

I. Business Integration of LCD Color Filter Businesses into SDP

1. Purpose of the Business Integration
SDP, Sakai Plant is the world's one and only 10th-generation liquid crystal display (LCD) plant which started operations in October 2009. With the participation of manufacturers of energy infrastructure such as electricity, gas and water in addition to manufacturers of LCD panel components, SDP, Sakai Plant realized integrated production from components to LCD panels, and thereby promoted the vertical integration of LCD panel production.
However, the management of SDP has been exposed to increasingly severe circumstances such as the prolonged strong yen and drop in the market price of digital products resulting from ruthless market competition, and SDP is now forced to seek more efficiency in its management in order to stabilize operations and reinforce cost competitiveness at Sakai Plant.
Sharp recently executed the Capital and Business Alliance Agreement with the Group of Hon Hai Precision Ind. Co., Ltd. ("Hon Hai"). Under this Agreement, SDP transfers 50% of its production of LCD panel modules to Hon Hai and Sharp respectively, and aims at maintaining the high operation rate and improving the cost performance and profitability of SDP. On this occasion, Sharp, Toppan and DNP have decided to integrate the businesses of LCD color filter, operated by Toppan, TEP, DNP and DNP Color Techno Sakai into SDP. With these strategic efforts, we are seeking to promote the further efficiency of large-sized LCD business including the businesses of color filter, the primary component of LCD panel, and achieve the improvement of the competitiveness of such businesses.

2. Outline of the Business Integration

(1) Schedule

Note1: Organizational restructuring in association with the Business Integration may require resolutions at general shareholders’ meetings at the parties to the Business Integration. Details will be notified as soon as determined.
Note2: Due to the antitrust filings needed in Japan and/or foreign countries, the effective date of the Business Integration may be on and after July 1, 2012. Details will be notified as soon as determined.

2. Method
It is scheduled to integrate the LCD color filter businesses operated by Toppan, TEP, DNP, and DNP Color Techno Sakai in their Sakai Plants into SDP. The method of the Business Integration will be determined upon consultation among the parties to the Business Integration not later than the execution date of the Definitive Agreement on the Business Integration.

3. Outline of Corporate Parties Involved in the Business Integration

(1) Outline of Toppan and TEP

(2) Outline of DNP and DNP Color Techno Sakai

(3) Outline of SDP