August 31, 2000

Re. Tokyo district court decision rendered on Aug.31,2000

This is to inform you of our comment regarding Tokyo district court decision on August 31, 2000

The court decision was, that we, Toyoda Gosei(TG) infringed Nichia`s Japanese Patent No.2,748,818(electrode construction) and therefore TG should not nake and sell the accused products, and should pay 100 million yens.

(1) As we are not happy with the court decision, we made an appeal to Tokyo High Court on Sept 1 claiming that the accused products did not infringe the patent.And we also continue the action to invalidate the patent.

(2) The accused products are old type and our current products, and we have no problem for producing and selling our current products to our customers.