News Release

July 2, 2015

Satake Signed a Strategic Partnership Agreement with Alapala, a Turkish Flour Milling Machinery Manufacturer

For Improving the Competitiveness by Integrating Satake's and Alapala's Strength

On June 29th, Satake signed a strategic partnership agreement with Alapala Machinery Industry & Trade Inc. (hereinafter "Alapala", Head office: Corum, Turkey, Chairman: Mr. Ismail Alapala) to manufacture, develop and market both companies' cereal milling machinery.

Photograph taken after Signing the Strategic Partnership Agreement Dr.Toshiko Satake, Chairperson of Satake, Mr.G?rkem Alapala, vice chairman of Alapala, Mr.Hajime Harada,Managing Director of Satake Europe from the left

1. Background and Purpose of this Agreement

Satake is a manufacturer of grain processing equipment including rice and flour milling machinery. Alapala is a manufacturer of flour milling machinery.Recently Turkish manufacturers have made significant progress in the global flour milling industry whilst of these Alapala commands the largest sales record.Satake already has an existing trading record with Alapala and enjoys a good trading relationship.In working toward this strategic partnership agreement with Alapala, Satake has been able to further develop their trading relationship as well as driving forward competitiveness by complimenting and sharing business activities in each of the companies' strongest areas.In April 2015, the two companies reached a preliminary understanding on the strategic partnership agreement and completed an umbrella agreement. These agreements were officially signed at Satake's headquarters in Hiroshima on June 29th.We will complete the detailed agreement in or after July.

2. Partnership Fields

Product development, manufacturing, procurement, sales, marketing, after-sales service.

3. Significance of this Agreement and Future Prospects

This agreement will produce multifaceted benefits to Satake and Alapala.Effectively utilizing, complementing and sharing technology, sales capabilities and human resources will promote the efficient development of competitive products, expanding market share, increasing sales and decreasing costs.We look forward to expanding our global sales by actively developing markets in which Satake and Alapala have a strong presence.

4. Comments from the both Companies

(1) Dr. Toshiko Satake, Chairperson, Satake

We are pleased to have the opportunity to expand our global businesses in the grain industries by combining our considerable strengths in R&D, manufacturing, marketing, sales and after-sales service within both companies.

(2) Mr.G?rkem Alapala, Vice Chairman, Alapala

With the combined synergies of Alapala and Satake, this partnership will enable both companies to offer unique services to the grain industry.

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