Asahi Glass Co., Ltd. ("Asahi", located in Tokyo, Japan, President, Mr. Shinya Ishizu) has reached an agreement to purchase the shares and convertible bonds of Hankuk Electric Glass Co., Ltd. ("HEG", located in Gumi, Korea, President, Doo-Chil Suh) held by Orion Electric Co., Ltd. and Daewoo Electronics Co. Asahi will purchase total 4,036 thousand shares (approximately 50.0% of the outstanding shares) at a price of 206.9 billion won (approximately ¥18.3 billion). The stock purchase agreement was signed in Seoul, Korea on November 4, 1999 (Japan and Korean time).

Because a demand of large-size CRTs has been raised over the past few years, sales of glass bulbs for CRTs for use in both TV and computer monitors has been increasing significantly. To meet its medium term business plan "Shrink to Grow 2001" announced in June 1999, Asahi is placing priority to further grow and globalize its glass business which includes the glass bulbs business. The sale of HEG shares related to the restructuring process of the Daewoo group, a large industrial group in Korea, provided a timely opportunity for Asahi. HEG is a well managed company that had total revenues of 484 billion won (¥47.2 billion) and current profit of 30.7 billion won (¥2.9 billion) for the fiscal year ending December 31, 1998. Asahi is confident that its interest in HEG will ensure it can meet the requirements for additional, high quality manufacturing capacity for its glass bulbs business and agreed to purchase the majority shares.

HEG operates three factories in Gumi, Korea, manufacturing both glass panels (front glass) and glass funnels (rear glass) for CRTs. The production capacity is approximately 25 million units per year on a glass panel base. HEG is extremely well positioned to produce large size glass bulbs, a segment of the market which is forecasting strong growth, at cost competitive prices.

Together with HEG, Asahi's global market share of glass bulbs will increase to approximately 35% from the current share of approximately 25%.

The purchase of HEG shares will provide Asahi with immediate and timely access to additional manufacturing capacities to allow Asahi to capture increasing demand for large size glass bulbs. It will also enhance Asahi's ability to optimize its product mix on a global basis. Further, through HEG, Asahi will be able to penetrate the large and significant Korea market for these products.

Asahi and HEG will further expand the glass bulbs business as Asahi Glass group capitalizing on the synergies to be realized between HEG and Asahi in such areas as technology and marketing.

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Company Description for Hankuk Electric Glass

1. Company Profile

2. Major shareholders information after the share purchase (fully diluted base with all outstanding CBs converted)

3. Schedule

1) October 22, 1999 Asahi Glass Board resolution

2) November 4, 1999 Signing date for the share purchase

3) Scheduled for on or before mid-November 1999 Closing