News Release

July 8, 2013

Satake Establishes Local Company in Indonesia

Joint Venture with Gobel Group to Increase Sales

Satake establishes a joint venture company called "PT.Satake Gobel Indonesia" with PT.Gobel Luwia Investama (Head office: Jakarta, Indonesia, President: Rachmat Gobel, hereinafter called "Gobel"), under the control of the Gobel Group with a primary business activity of sales and after-sale service, to increase sales in Indonesia. On July 8, 2013, the joint-venture contract was signed at Satake's head office in Hiroshima. The business will launch in January, 2014.

Dr. Toshiko Satake (left) and Mr. Rachmat Gobel (right)

For large-scale projects, such as rice mill plants, Satake now directly carries out the business. For farmers or small-scale machines (single unit), Satake carries out sales and after-sales service through representatives. The Indonesian market will expand along with the country's economic development. We think it is necessary to improve sales performance and after-sales service to increase sales. Therefore, we decided to establish a local company to execute this business. To ensure quick start-up and smooth business operation, we consider a joint venture with a strong local company to be the best way. Finally we asked Mr. Rachmat Gobel, the president of the Gobel Group, which operates in a wide number of areas such as manufacturing, sales and logistics of home electric appliances and food production, for cooperation with establishing Satake Gobel Indonesia. On July 8, 2013, we signed the joint-venture contract at Satake's head office in Hiroshima. The business will begin in January of 2014. Satake Gobel Indonesia will be located in Surabaya with a capital base of one million dollars (0.6 million from Satake, 0.4 million from Gobel) and thirteen employees. After starting the business, we will enhance after-sales service, increase installation work quality, plan strategies based on marketing surveys and construct the large-scale project accepting order system. We will also perform sales activities in neighboring countries such as the Philippines and Malaysia with our group companies. In the future, we expect to plan new products for the Indonesian market and to manufacture products in Indonesia.

Appendix

Local Company

1. Company name: PT.Satake Gobel Indonesia
2. Location: Surabaya, Indonesia
3. President: Shoichi Tanaka (Also President of Satake Thailand)
4. Capital: one million dollars (0.6 million from Satake, 0.4 million from Gobel)
5. Business start: January, 2014
6. Category of business: sales, after-sales service and installation work of rice whiter and optical sorter
7. Number of employees: 13

Map of Surabaya

Surabaya is the second biggest city in Indonesia after the capital, Jakarta.(Population: 2.78 million in 2011)

Indonesian Market

●Population: 244.47 million (4th in the world, IMF "World Economic Outlook Databases" in 2013)
●Rice produced: 66.41 million tons (Paddy base, 3rd in the world, FAO "FAO Statistics Database" in 2010)
●Rice amount of import: 1.96 million tons (3rd in the world, USDA Statistics in 2012)

Gobel Group

The Gobel Group was established in 1994 under the holding company PT. Gobel International. The group business areas include manufacturing and sales of Panasonic products, manufacturing and sales of packing materials, transportation, food processing and sales, advertising, and real-estate development and management. Number of employees is 10,000.
Mr. Rachmat Gobel, President of the Gobel Group was born in Jakarta in 1962. He graduated from Chuo University in Japan. Now, he is also the chairperson of the Japan Indonesia Association Inc. His father, Mohammad Gobel gained technical participation from Matsushita Electric Industrial Company in 1960 and started to manufacture black-and-white televisions in 1962. He also established the joint venture company "National Gobel (currently, Panasonic Manufacturing Indonesia)".

* Please note descriptions in news releases are accurate as of the date of release and may differ from the most up-to-date information.