OKI to Spin-off Its Semiconductor Business to Establish New Company

TOKYO--(Business Wire)--
Oki Electric Industry Co., Ltd. (TOKYO:6703) announced that at its
meeting today, the Board of Directors approved the spin-off of its
semiconductor business through a company split to establish a new
company, OKI Semiconductor Co., Ltd., effective Oct. 1, 2008.

"As announced in October 2007, OKI is currently implementing
measures to revamp the business structure to ensure stable profit and
achieve our mid-term business plan," said Katsumasa Shinozuka,
President and CEO at OKI. "We are spinning-off our semiconductor
business to conduct a more flexible business operation, to establish
an efficient and agile management structure that corresponds to the
rapidly changing semiconductor market, and to clarify the profit
responsibility as a business."

The new company, OKI Semiconductor, will aim to increase sales
with business pillars such as logic LSIs and system LSIs that leverage
OKI's advantages of low power consumption, high-voltage processing,
digital/analog mixed processing and small-size packaging technologies.
The company will inherit OKI's strengths in system memories as seen in
P2ROM and foundry business based on differentiating technologies such
as high voltage processing, and it will also offer new products with
OKI's unique process technologies including Silicon-on-Insulator (SOI)
and Wafer-level Chip-size Packaging (W-CSP). As part of the spin-off,
all semiconductor-related OKI subsidiaries, such as Miyazaki OKI and
Miyagi OKI, will become OKI Semiconductor's subsidiaries.

OKI plans to transfer part of the new company's shares to Rohm
Co., Ltd. to aim for a synergy effect by complementing each other with
OKI Semiconductor's technologies.

About OKI Semiconductor Co., Ltd. (Effective October 1, 2008)

Address: 550-1 Higashi Asakawa Cho, Hachioji, Tokyo, Japan

Date of foundation: October 1, 2008

Capital: 20 billion yen (100% by OKI Electric Industry)

Representative: Hironori Kitabayashi, President and Representative
Director

Employees: Approx. 6,000 personnel (consolidated base)

Sales target: 155.0 billion yen (consolidated base in FY ending
March 2011)

Operation: Develop, manufacture, sell, import and export
semiconductors and electronic devices

About Oki Electric Industry Co., Ltd.

Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first
telecommunications manufacturer, with its headquarters in Tokyo,
Japan. OKI provides top-quality products, technologies and solutions
to its customers through its info-telecom system business,
semiconductor business and printer business. All three businesses
function as a collective force to create exciting new products and
technologies that satisfy a spectrum of customer needs in various
markets. Visit OKI's global web site at http://www.oki.com/.

Notes:

-- Names of companies and products are trademarks or registered
trademarks of the respective companies and organizations.

Oki Electric Industry Co., Ltd.
For Europe and Americas:
Naomi Takeuchi, +1-408-737-6279
Public Relations Division
press@oki.com
or
For Asia and Other Areas:
Akiko Horiguchi, +81-3-3580-8950
Public Relations Division
press@oki.com

Copyright Business Wire 2008