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April 20, 2004

Second Production Base for Blue LEDs Established

Toyoda Gosei Co., Ltd

Aichi, Japan, April 20, 2004 – Toyoda Gosei Co., Ltd. announced today the establishment of a facility in Takeo City, Saga Prefecture that will serve as the company’s second production base for gallium nitride light-emitting diodes (LEDs). Construction on the new facility began in April 2004, and LED production is scheduled to commence in May 2005. The new Kyushu plant will enable the company to meet growing demand for Blue LEDs (currently made only at the Heiwacho Plant, Aichi Prefecture). Also, it will serve to diversify the company’s production base, lowering risk of production loss in the event of natural disaster such as an earthquake. 
The new plant will operate as the Optoelectronics Division, Kyushu Branch on a 1.4-hectare site at Takeo Industrial Park in Saga Prefecture. The plant will have 3,300 m_ of floor space after initial construction, with scheduled expansion to 7,800 m_ by 2006. Capital investment will total 1.6 billion yen in 2004, 7 billion yen in 2005, and 7 billion yen in 2006. To reduce required capital outlays, the company is using land and buildings owned by Toyota Gosei Kyushu Co., Ltd.
Monthly production capacity at the Kyushu Branch will increase from an initial 29 million chips to 130 million chips in 2005 and 200 million chips in 2006. The facility will be staffed with about 80 employees initially, with a projected increase to 220 employees in 2005 and 350 employees in 2006.