Ushio Announces Investment in Epitex Inc.

January 31, 2008

Ushio Announces Investment in Epitex Inc.
Enters the LED Market with 55% Equity Stake in the Infrared LED Manufacturer

Tokyo, Japan – January 31, 2008 – Ushio Inc. and Ushio Lighting, Inc. are pleased to announce that they have acquired 55% of the outstanding shares of an infrared LED manufacturer, Epitex Inc. (Head Office: Minami-ku, Kyoto-shi, Kyoto; President: Katsunori Maeda; “Epitex”) today.

Epitex is a manufacturer of light-emitting diodes (LEDs) that provides infrared devices and an array of other distinctive products. The company excels in the crystal growing manufacturing method—a method that is ideal for short-run production of a wide variety of products—and boasts industry-leading technologies. In 2006, Epitex began supplying high-power, custom-designed infrared LEDs to Ushio Lighting. This device is used for illuminations attached to surveillance devices, including those for electronic toll collection (ETC) systems on highways. Ushio has acquired 35%, and Ushio Lighting 20%, of the outstanding shares of Epitex.

Ushio has been committed to basic research on LEDs, in response to rising demand for the devices. By investing in Epitex, Ushio will have access to its superior technologies and enter the promising LED market.

The first line of main products will be LEDs geared for surveillance devices, including products for traffic surveillance and car-park surveillance that Epitex has actually been supplying to Ushio Lighting. We aim to develop the business in the coming years, by expanding the use of LED devices so they will find application in areas such as biometric authentication, automobile-related products, medical devices, and industrial-use light sensors.

Established in 1989, Epitex principally supplies high-power infrared LED, high-power, high-speed LED, and high-intensity visible light LED, with 70% of its sales coming from infrared devices. These LED products are used for backlights for image-processing devices, for security light sensors, and as light sources for optical beacon used by the Vehicle Information and Communication System (VICS), among other applications.
For further information, visit: http://www.epitex.com/new_global/index.html

Established in 1964, Ushio Inc. (Head Office: Tokyo; TSE: 6925) is the foremost manufacturer of lamps for lighting, halogen lamps for office automation equipment, UV lamps used for exposure systems in semiconductor/LCD fabrication, and discharge lamps for data projectors. It also manufactures and markets optical equipment and cinema projectors that incorporate its lamps, and many of its products have achieved impressive market shares. The company employs a workforce of 4,700, including employees of overseas consolidated subsidiaries. Consolidated sales for the fiscal year that ended in March 2007 reached 151.5 billion yen.
For further information, visit: http://www.ushio.co.jp/en/

Ushio Lighting, Inc. (Head Office: Tokyo) is a 100% subsidiary of Ushio Inc., established in 1963. As the core company of Ushio Group in Japan, Ushio Lighting has principally been engaged in operations for images/movies and lighting. It manufactures and markets light sources, including halogen lamps for lighting and ceramic metal halide lamps, as well as stage and studio effect lighting systems, industrial machines, and exposure systems. Ushio Lighting is also committed to the LED businesses. The lineup of its distinctive products include infrared LED for surveillance devices used in a broad array of locations, and LED lamps for lighting and decorative illuminations, which have earned the company high marks in this niche market. Ushio Lighting maintains a very high domestic market share for the infrared LED lamps incorporated in surveillance devices for ETC systems.
For further information, visit: http://www.ushiolighting.co.jp/

Ushio Inc.
IR & Public Relations
Tel: +81-3-3242-1815 / Fax: +81-3-3245-0589
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