February 5, 2002Management

Announcement of Consolidation of Glass Frit Paste Divisions

Asahi Glass Co., Ltd (Head Office: Tokyo, President: Shinya Ishizu) and its affiliated company, Asahi Techno Glass Corporation (Head Office: Funabashi, Chiba, President: Masayuki Katsumata) is consolidating its 'Glass Frit Paste' manufacturing operations effective as of 1st April 2002 in order to enhance operational efficiency. Asahi Glass will be handling marketing/sales after the consolidation.

The companies' Glass Frit Paste business mainly comprises the manufacturing of glass powder, paste and moulding which is primarily supplied to automobile manufacturers and companies engaged in manufacturing of displays such as plasma display panels (PDPs), as well as electronic and telecommunication products. In keeping with the progress in environmental protection, it is necessary for manufacturers to develop new products that reflect these market needs such as lead-free. Thus, shorter time spans for product development and volume-production are essential, especially for rapidly expanding sectors such as manufacture of PDP, or electronic/telecommunication products Establishment of more efficient business structure for development, manufacturing and marketing/sales are urgently required.

Hence, the two divisions decided to consolidate their operations, aiming at establishment of business structure that enables quick response to market needs.

With the consolidation, the following will be possible and thus we believe to be able to better differentiate our products from our competitors both in quality and pricing.

Full utilization of the two companies' manufacturing bases; Asahi Glass Koriyama Electronic Materials Co.,Ltd from Asahi Glass, and Nakayama Factory in Chiba Pref., Shizuoka Factory and Iwaki Glass Malaysia Bhd from Asahi Technoglass

Mutual access to each other's glass compound data base

Strategic investment in R&D and establishment of mass production facilities for products with future growth potential such as PDPs

Effective utilization of the expertise and sales force of Asahi Glass Group, and manufacture of myriad products ranging from automotive to display-use glass products.

The firm sees Glass Frit Paste market demand growing (primarily for PDPs,) and forecasts sales to reach 40 billion Yen in fiscal 2003. The firm aims to achieve a sales target of 10 billion Yen in 2003 through business expansion, and optimally leveraging its advanced knowhow accumulated over many years, and which includes compound-development technology and clean-room technology for the manufacture of electronic products.

For further information, please contact:
Mr. Kenichi Oda
Corporate Communications Div.
Asahi Glass Co., Ltd.
TEL: 81-3-3218-5408
E-mail: info-pr@om.agc.co.jp