LEADER ELECTRONICS CORP to Establish New Subsidiary; Subsidiary to Sell Property; Expects Extraordinary Profit and Lowers Mid-year and Full-year Consolidated Outlook for FY Ending March 31, 2013

LEADER ELECTRONICS CORP announced that it will establish a new wholly owned subsidiary, JiaLong LEADER (Beijing) Trading Co.,Ltd., which will be engaged in sale of electric measuring instruments, based in Beijing, China in November 2012. The Company also announced that its U.S.A.-based subsidiary will sell a property based in U.S.A. at a price of USD 1,495,000 on November 12, 2012. Therefore, the Company expects an extraordinary profit of JPY 38 million for the fiscal year ending March 31, 2013. The Company has lowered its mid-year consolidated outlook for revenue from JPY 2,100 million to JPY 1,132 million, operating profit (loss) from JPY (60 million) to JPY (524 million), ordinary profit (loss) from JPY (13 million) to JPY (493 million), net profit (loss) from JPY (18 million) to JPY (497 million) and earnings (loss) per share from JPY (4.32) to JPY (119.45) for the fiscal year ending March 31, 2013. The Company also has lowered its full-year consolidated outlook for revenue from JPY 4,200 million to JPY 2,500 million, operating profit (loss) from JPY (70 million) to JPY (910 million), ordinary profit (loss) from JPY 20 million to JPY (840 million), net profit (loss) from JPY 10 million to JPY (810 million) and earnings (loss) per share from JPY 2.40 to JPY (194.63) for the fiscal year ending March 31, 2013. The Company lowered its mid-year and full-year consolidated outlook mainly due to the sluggish economics and decreased demand of production equipments.