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May 6, 2004

UBE

Ube Industries,Ltd.

Ube Licenses Two-Layer CCL Technology to Matsushita
Electric Works

Ube Industries,Ltd. (President: Kazumasa Tsunemi) and Matsushita Electric Works Ltd. (President: Koichi Hatanaka) have reached a contract agreement under which Ube will license to Matsushita Electric Works production technology* for the manufacture of two-layered flexible copper-clad laminates (CCL). Capital investment, manufacture and sales will be conducted by both companies. Together they will incrementally expand their capacity to supply two-layered flexible CCL, aiming to reach 3.3 million m2 by the second half of 2005.
* = technology for the continuous attachment of polyimide film to copper sheets, creating rolls of two-layer CCL; this is an especially efficient method for the manufacture of double-sided boards.

• Market background
The market for two-layered flexible CCL has been in a state of tight supply, thanks to the increasing sophistication of mobile phones, digital cameras and other products. Currently, the market is estimated at about 5 million m2 annually, and it is expected to grow at a pace of 20% per year. With advances in fine-pitch and high-density packages for circuit boards, demand for double-sided two-layer flexible CCL is rising rapidly.
• Aim of technology license
Using integrated manufacturing and building from monomers, Ube Industries can produce polyimide film of outstanding dimensional uniformity, ideally suited for mass production of roll two-layer flexible CCL, and it has experience in supplying this market. At the same time, Matsushita Electric Works is a top manufacturer of rigid printed-circuit materials, with manufacturing and sales locations in various countries throughout the world, and tremendous technical, marketing and sales strengths. This alliance can be expected to generate synergies between the two companies in the market for flexible printed circuits.

Ube Industries regards high-performance materials, including polyimide, as a core business. The company is concentrating management resources in this area, and taking proactive steps to expand this business as a whole; two-layer flexible CCL (product name: Upicel N) is a key part of that business expansion. Wholly owned subsidiary Ube Nitto Kasei (President: Shin¥'ichiro Yamamoto) has already completed two rounds of investment in production facilities at its Gifu plant, and a third round is now under way, due for completion in mid-2005. In our judgment, our own increased production and the alliance with Matsushita Electric Works were necessary steps, to enhance the market presence of Upicel products in the rapidly expanding market, and to accelerate the growth of the Upicel family (two-sided CCL based on Ube Industries polyimide film), and so we reached the decision to license the technology externally. We expect that the granting of this technology license will also contribute to increased sales of polyimide film for use in two-layer flexible CCL.



For inquiries please contact:

Ube Industries, Ltd.
Investor Relations & Public Relations Dept.
Corporate Planning & Administration Office
Seavance North Building, 1-2-1 Shibaura, Minato-ku, Tokyo 105-8449
Phone : +81(3)5419-6110

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