Dai Nippon and Sony Chemical discuss business transfer

Dai Nippon Printing and Sony Chemical & Information Device Corporation have signed a legally non-binding letter of intent regarding the transfer of SonyCID’s global thermal transfer ink ribbon business to DNP. The two companies will start to study various issues, including suitable transfer methods which comply with the laws and regulations of relevant jurisdictions, along with other concrete matters, aiming for the early conclusion of a legally binding definitive contract with a view to complete the transfer by July 2008.

DNP began manufacturing and marketing thermal transfer ink ribbons used in facsimile machines in the early 1980s, and has steadily expanded applications to include barcodes which it developed in the early 1990s. DNP has successfully developed this business on a global scale, and maintains manufacturing and sales bases in the United States, France and Japan.

Barcodes are used in a variety of different industries, including product traceability and components management at manufacturing sites. Demand for thermal transfer ink ribbons for barcode systems continues to grow steadily. DNP expects to expand this business in response to the increased demand in a timely manner, following the transfer of the relevant manufacturing facilities from SonyCID. With this transfer, DNP anticipates increasing its competitiveness and its ability to move toward common sourcing of materials, as well as increased production and operating efficiencies through the strengthening of existing manufacturing and sales bases.

SonyCID will invest the capital gained from this transaction to focus on the growing optical film and electronic device business and reallocate its resources to facilitate more rapid expansion in that area.

DNP plans to offer employment at DNP to the employees at SonyCID's thermal transfer ink ribbon manufacturing facilities in Pittsburgh, Pennsylvania (the United States) and Amsterdam (the Netherlands), in accordance with applicable laws and regulations.