Tokai Rubber Industries Ltd to Establish New Subsidiary in Brazil; to Acquire Produflex Minas Industria de Borrachas Ltda.

Tokai Rubber Industries Ltd announced that it has decided to establish a new subsidiary, Tokai Rubber do Brasil Ltda. in April 2013. The Company and TRI USA, Inc. (another subsidiary of the Company) will hold a 90% and a 10% stake in Tokai Rubber do Brasil Ltda. respectively. After that, the Company will be acquiring a 100% stake in Produflex Minas Industria de Borrachas Ltda., through Tokai Rubber do Brasil Ltda, at the price of BRL 30 million, from Edgar Solano Marreiros and Expedito Marreiros Solano. The acquisition date is not decided yet. After the transaction, Produflex Minas Industria de Borrachas Ltda. will become a sub-subsidiary of the Company.