November 7, 2000Management

ASAHI GLASS Takes Majority Ownership in its Joint-Ventures in Thailand

Asahi Glass Co., Ltd. ("AGC"; headquartered in Tokyo; president: Mr. Shinya Ishizu) has increased its shareholding ratio in Thai-Asahi Glass Public Co., Ltd. ("TAG"), Bangkok Float Glass Co., Ltd. ("BFG") and Thai Safety Glass Co., Ltd. ("TSG") by purchasing all the shares held by Srifuengfung & Phanichewa group ("Thai Partners") to take majority ownership in those three companies. In addition, AGC has indirectly acquired, from Thai Partners, all the shares in Thai-Asahi Electronic Devices Co., Ltd. ("TAE") . The total amount of acquisition for the four companies is approximately ¥ 4.4 billion.

Before the acquisition, AGC had owned 39.6%, 41.4%, 45.0% and 70.0% of the shares in TAG, BFG, TSG and TAE respectively. After the acquisition, AGC's ownership in those companies has become 85.2%, 96.3%, 93.2% and 100% respectively. Since TAG is listed in the Stock Exchange of Thailand ("SET"), following the acquisition as mentioned above, AGC is to make a public tender offer to purchase all the remaining shares in TAG according to the regulation of the Securities and Exchange Commission of Thailand. And thereafter, AGC is planning to de-list the company from SET. In addition, AGC intends to own 100% of the shares in BFG and TSG, as well, by purchasing all the remaining shares from the other shareholders.

TAG and BFG were established in 1963 and 1989, respectively, for manufacture and sales of flat glass for construction and automobile use, and they have been managed as joint ventures between Thai Partners and AGC. They have been playing an important role as export centers of flat glass in the region of South-East Asia. TSG, which manufactures and sells fabricated glass for automobiles and industrial use, was established in 1974 first as a subsidiary of TAG and reorganized in 1988 to be a joint venture between Thai Partners and AGC. Japanese, American and European car manufacturers operating in Thailand are its major customers.

AGC understands that Thailand has recovered from Asian economic crisis, and expects that it will make further economic growth in the future. Therefore, after being the majority shareholder to take full control over the three companies, AGC intends to make them function as its important production centers in Asian region within the framework of its global business strategy. For this purpose, AGC will try its best endeavor to improve the management efficiency of, to reduce the production costs of, and to seek for higher value added products for, the three companies in order to enhance their competitiveness.

TAE was established in 1991, as a joint venture between Thai Partners and AGC, for manufacture and sales of glass delay line for television and video monitor use. However, in the recent trend of the digitization, the demand for glass delay line declined significantly. In line with the acquisition, TAE will expand its business with its newly started project, i.e. LCD module production for AGC's group company.

Since the year before last, AGC has been undertaking a management strategy called "Shrink to Grow", which is a strategy to renovate and improve the business structure of the company by concentrating its resource into selected businesses. AGC's recent share acquisition of the four companies in Thailand is in line with its growth strategy to strengthen the globalization of its business.

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1. Change of Shareholding Ratio after the Acquisition from Thai Partners:

Shareholding Ratio
Before the Acquisition
Shareholding Ratio
After the Acquisition
Thai-Asahi Glass Public Co., Ltd. AGC 39.6%
Thai Partners 45.6%
Public 14.8%
AGC 85.2%
Public 14.8%
Bangkok Float Glass Co., Ltd. AGC 41.4%
Thai Partners 54.9%
Others 3.7%
AGC 96.3%
Others 3.7%
Thai Safety Glass Co., Ltd. AGC 45.0%
Thai Partners 48.2%
Others 6.8%
AGC 93.2%
Others 6.8%
Thai-Asahi Electronic Devices Co., Ltd. AGFT * 70.0%
Thai Partners 30.0%
AGFT 100.0%

*AGFT: Asahi Glass Fine Techno Co., Ltd. (AGFT), which is a wholly owned subsidiary of AGC.


2. Company profile of Thai-Asahi Glass Public Co., Ltd.
*All the profiles shown in 2. to 4. below are based on the information at the end of Dec.1999, which is before the acquisition.


_ (1) Name : Thai-Asahi Glass Public Co., Ltd.
  (2) Location : Head Office - Bangkok
: Factories - Samutprakarn, Rayong
  (3) Representative : Mr.Sombath Phanichewa (President)
  (4) Share Capital : Baht 750 million
  (5) Shareholders : AGC (39.6%),
: Srifuengfung & Phanichewa group(45.6%),
: Public (14.8%)
  (6) Sales : Baht 1,247 million
  (7) Products : Float glass, Figured glass, Heat-absorbing glass,
: Heat-reflective glass, Tempered glass, Mirror
  (8) Established : in June, 1963
  (9) Number of Employees : 604
  (10) Listing : in 1989 (in The Stock Exchange of Thailand)

3. Company profile of Bangkok Float Glass Co., Ltd.

_ (1) Name : Bangkok Float Glass Co., Ltd.
  (2) Location : Chonburi
  (3) Representative : Mr. Chainarong Srifuengfung (Managing Director)
  (4) Share Capital : Baht 600 million
  (5) Shareholders : AGC (41.4%),
: Srifuengfung & Phanichewa group (54.9%),
: Others (3.7%)
  (6) Sales : Baht 1,074 million
  (7) Products : Float glass
  (8) Established : in January, 1989
  (9) Number of Employees : 266

4. Company profile of Thai Safety Glass Co.,Ltd.

_ (1) Name : Thai Safety Glass Co., Ltd.
  (2) Location : Chonburi
  (3) Representative : Mr. Sombath Phanichewa (President)
  (4) Share Capital : Baht 420 million
  (5) Shareholders : AGC (45.0%),
: Srifuengfung & Phanichewa group (48.2%),
: Others (6.8%)
  (6) Sales : Baht 1,039 million
  (7) Products : Fabricated glass for Automobile and Industrial use
  (8) Established : in July, 1974
  (9) Number of Employees : 391

5. Company profile of Thai-Asahi Electronic Devices Co., Ltd.

_ (1) Name : Thai-Asahi Electronic Devices Co., Ltd.
  (2) Location : Lamphun
  (3) Representative : Mr. Hisao Umetani (President)
  (4) Share Capital : Baht 70 million
  (5) Shareholders : Asahi Glass Fine Techno Co., Ltd.(70.0%),
: Srifuengfung & Phanichewa group (30.0%)
  (6) Sales : Baht 217 million
  (7) Products : Glass delay line, Printed circuit board,
: Fused quartz for semiconductor products
  (8) Established : in October, 1991
  (9) Number of Employees : 310
Contact
Asahi Glass Co., Ltd.
Kenichi Imoto
Director
Corporate Communications Div.
TEL: +81-3-3218-5519
FAX: +81-3-3201-5390