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March 24, 1997

Dainippon Screen Establishes Subsidiary for
Maintenance and Service of Semiconductor and LCD Manufacturing Equipment

Kyoto,March 24,1997--April 1, 1997, Dainippon Screen Mfg. Co., Ltd., (headquarters: Kamigyo-ku, Kyoto; president: Akira Ishida) will establish DS Tech Kansai Co., Ltd., a subsidiary to provide maintenance and service on semiconductor and LCD manufacturing equipment. The subsidiary will begin operations on the same date.

Dainippon Screen will establish DS Tech Kansai as a joint venture with Kyoto Technica, Inc., which currently performs commissioned maintenance and service for Dainippon Screen. The new subsidiary will be capitalized at 50 million yen, with Dainippon Screen providing 82% and Kyoto Technica the remainder. Satoshi Kitabayashi, Business Promotion Department General Manager of Dainippon Screen's Electronic Equipment Division, will be appointed president of DS Tech Kansai, which will be headquartered in Kyoto.

Dainippon Screen will commission the new subsidiary to deliver, install, maintain and service the equipment it markets to customers in western Japan--including the Kinki, Chugoku and Shikoku regions--tofabricate semiconductors, LCDs and other flat panel displays, printed circuit boards and other electronic equipment. Eventually, the subsidiary's activities will expand to include equipment upgrades and sales of parts required for maintenance.

At the start of operatations, DS Tech Kansai will employ 100 technical service representatives, a figure that is slated to increase to 120 within three years. Approximately 70 of the company's initial personnel will be transferred from Kyoto Technica. The remainder will be dispatched primarily from DS Scanner Co., Ltd., a wholly owned Dainippon Screen subsidiary which is headquartered in Fukushima-ku, Osaka, with Dainippon Screen also sending a few people.

Currently, Dainippon Screen's Electronic Equipment Division operates a Technical Service Department, which operates facilities in the cities of Tokyo, Kyoto, Kumamoto and Sendai. Furthermore, in October 1995 Dainippon Screen established regional subsidiaries that provide commissioned maintenance and other services, as does DS Scanner. These companies include DS Tech Tokyo Co., Ltd.--a wholly owned Dainippon Screen subsidiary that is headquarted in Toshima-ku, Tokyo--and DS Tech Sendai Co., Ltd., which is 100% owned by DS Tech Tokyo.

In recent years, the amount of equipment that Dainippon Screen provides to semiconductor and LCD manufacturers has grown sharply. Although many of these companies have chosen to postpone major investments in new equipment, Dainippon Screen remains confident in the medium- and long-term expansion of the market for semiconductor and LCD production equipment. This belief underlies our resolve to bolster our maintenance and service network in Western Japan so that we can provide customers with rapid round-the-clock service, seven days a week. The establishment of DS Tech Kansai is one facet of this plan. In addition to its home city of Kyoto, this subsidiary will operate facilities to serve customers in Hiroshima and Tottori prefectures.

  • DS Tech Kansai Co., Ltd.
  • Establishment and start of operations:April 1, 1997

    President and Representative Director:Satoshi Kitabayashi

    Capitalization: 50 million yen (82% provided by Dainippon Screen Mfg. Co., Ltd, 18% by Kyoto Technica, Inc.)

    Head office address:436-5, Tatetomita-cho, Higashi-horikawa-dori, Ichijo-agaru, Kamigyo-ku, Kyoto

    Employees:103 (as of establishment on April 1, 1997)

    Scale of operations:

      First fiscal year's revenues: 1.1 billion yen(forecast)
      Second fiscal year's revenues:1.2 billion yen (forecast)

  • Kyoto Technica, Inc.
  • Establishment:April 1984

    President and Representative Director: Yoshio Kimura

    Capitalization: 30 million yen

    Head office address:Mitsubayashi Bldg, 520, Shionokoji-cho, Higashinotoin-sagaru, Shimogyo-ku, Kyoto

    Employees:180

    Revenues:1.4 billion yen (fiscal year ended March 1996)

    Operations:

      \ Production of semiconductor manufacturing and image processing equipment, dispatch of production personnel
      \ Development and production of microcomputer and image processing equipment
      \ Maintenance and servicing of equipment, others

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