Company profile Name Representative Established Capital Major shareholders

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1 Company profile Name Representative Established Capital Major shareholders Yearly sales Business line Number of employees Board of directors Major banks Professional associations Main Business Connections KAWATA MFG Co., Ltd. Naoto Yukawa, President September 10, ,140,000 JPY KAWATA Kyoshinkai, Bank of New York GCM Client Accounts EISG, Kawata Employee Shareholding Association, The Bank of Tokyo-Mitsubishi UFJ, Ltd. 15,600,000,000 JPY (FY 2008, March, Consolidated basis) Design and manufacturing of powder and grain processing equipment and systems 637 (FY 2008, March, 2008, Consolidated basis) President: Naoto Yukawa Managing Director: Akira Ozaki Director: Shozo Ikeda Director: Hidenori Morihata Director: Shigehisa Takemoto Director: Kazuhiro Muraoka Auditor: Shigetane Uchida Auditor: Kinya Jikumaru Operating officer: Takayuki Shiba Operating officer: Masaharu Okubo The Bank of Tokyo-Mitsubishi UFJ, Ltd., Resona Bank Ltd., The Nanto Bank, Ltd., Mitsubishi UFJ Trust & Banking Corp. The Osaka Chamber of Commerce & Industry Osaka Prefectural Industrial Association Osaka Industrial Research Association Japan Plastic Machinery Association Plastics Technology Association Plastics Molding Process Institute Japan Society of Plastics Technology West Japan Plastic Products Industrial Association Japan Powder Industrial Technology Associantion TRADING COMPANIES ITOCHU CORPORATION/ITOCHU SANKI CORPORATION/KANE- MATSU CORPORATION/KANEMATSU KGK CORP/SUMITOMO CORPORATION/DAIICHI JITSUGYO CO., LTD./TOMEN CORPORA- TION/TOYOTA TSUSHO CORPORATION/NAGASE & CO., LTD. NICHIMEN CORPORATION/NISSHO IWAI CORPORATION/MARU- BENI CORPORATION/MITSUBISHI CORPORATION/ MITSUBISHI HEAVY INDUSTRIES., LTD. (CHUBU OFFICE)/ MITSUBISHI HEAVY INDUSTRIES., LTD. (KANSAI OFFICE)/ MITSUBISHI HEAVY INDUSTRIES., LTD. (KYUSHU OFFICE) FIBERS KURARAY CO., LTD./TEIJIN HUMAN CHEMISTRY,HUMAN SOLU- TIONS/TOYOCLOTH CO., LTD./TOYOBO CO., LTD. /TORAY IN- DUSTRIES,INC./NIPPON UNICAR CO., LTD./UNITKA CO., LTD. CHEMICALSASAHI CHEMICAL INDUSTRIAL CO., LTD./ASAHI ORGANIC CHEMICALS INDUSTRY CO., LTD./IDEMITU PETRO- CHEMICAL CO., LTD./UBE INDUSTRIES, LTD./FP CORPORA- TION/OKURA INDUSTRIAL CO., LTD./KANEKA CORPORATION RUBBERS MOONSTAR CHEMICAL CORPORATION./BANDO CHEMICAL IN- DUSTRIES, LTD. /BRIDGESTONE CORPORATION/MITSUBOSHI BELTING LTD. STEELS, METALS KOBE STEEL. LTD. /SUMITOMO ELECTRIC INDUSTRIES. LTD./TOYO SEIKAN, LTD./JAPAN STEEL WORKS, LTD./THE FURU- KAWA ELECTRIC CO., LTD. MACHINERY AOKI TECHNICAL LABORATORY, INC./UBE INDUSTRIES, LTD./ KAWAGUCHI, LTD./SANJO SEIKI CO., LTD./SUMITOMO HEAVY INDUSTRIES, LTD./SODICK CO., LTD./TOSHIBA MACHINE CO., LTD./TOYO MACHINERY & METAL CO., LTD./NIGATA MACHINE TECHNO CO., LTD./NISSEI ASB MACHINE CO., LTD./NISSEI PLAS- TIC INDUSTRIAL CO., LTD./THE JAPAN STEEL WORKS, LTD./ MITSUBISHI HEAVY INDUSTRIES, LTD./MEIKI CO., LTD. ELECTRICAL APPLIANCES KYOSERA CORPORATION./SANYO ELECTRIC CO., LTD./SHARP CORPORATION/STANLEY ELECTRIC CO., LTD./SONY CORPORA- TION/TDK CORPORATION./TOSHIBA CORPORATION/COLUMBIA MUSIC ENTERTAINMENT, INC./JAPAN AVIATION ELECTRONICS INDUSTRY, LTD./DENSO CORPORATION/VICTOR COMPANY OF JAPAN, LIMITED/HITACHI, LTD./HITACHI MAXELL, LTD./ MATSUSHITA ELECTRIC INDUSTRIAL CO, LTD./MATSUSHITA ELECTRIC WORKS, LTD./MITSUBISHI ELECTRIC CORPORATION/ MEIDENSHA CORPORATION SHIPBUILDINGS & AUTOMOBILES ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES CO, LTD./ICHIKOH INDUSTRIES, LTD./KOITO MANUFACTURING CO., LTD./ DAIHATSU MOTOR CO., LTD./TOYOTA MOTOR CORP/TOYODA GOSEI., LTD./NISSAN MOTOR CO., LTD./HITACHI ZOSEN COR- PORATION/HONDA MOTOR CO., LTD./MAZDA MOTOR COR- PORATION/MITSUBISHI MOTORS CORPORATION/MITSUBISHI HEAVY INDUSTRIES,LTD. PRECISION INSTRUMENTS ASAHI OPTICAL CO., LTD./OLYMPUS CORPORATION/CANON INC./SONY MUSIC ENTERTAINMENT (JAPAN) INC./TOSHIBA-EMI LIMITED/TEICHIKU ENTERTAINMENT, INC./PIONEER CORPORA- TION/NIKON CORPORATION/KONICA MINOLTA HOLDINGS, INC./RICOH COMPANY, LTD. OTHER MANUFACTURES SHIN-ETSU POLYMER CO., LTD./DAI NIPPON PRINTING CO., LTD./TOPPAN PRINTING CO., LTD. Total Systems Engineering ,000

2 Office and Factories Company History Technology for Domestic Head Office: Sendai Office: Oyama Office: Takasaki Office: Saitama Office: Tokyo Office: Minami-Kanto Office: Shizuoka Office: Nagoya Office: Osaka Office: Hiroshima Office: Kyushu Office: Tokyo Plant: Osaka Plant: Sanda Plant: ECO Technical Center: Home Page: Overseas Daiichi Kyogyo Bldg., , Awaza, Nishi-ku, Osaka , Japan Phone (Main): Fax: Crescent Koriyama, , Koriyama, Taihaku-ku, Sendai, Miyagi Pref , Japan Phone (Main): Fax: floor Artcoa, , Inuzuka, Oyama, Tochigi Pref , Japan Phone (Main): Fax: , Egi-cho, Takasaki, Gunma Pref , Japan Phone (Main): Fax: , Ryoke, Kawaguchi, Saitama Pref Phone (Main): Fax: Nihonbashikayabachou, Chuo-ku, Tokyo, , Japan Phone (Main): Fax: TYG Daini Izumimachi Bldg., 14-2, Izumimachi, Atsugi, Kanagawa Pref , Japan Phone (Main): Fax: , Nakata, Suruga-ku, Shizuoka , Japan Phone (Main): Fax: Ohsone, Higashi-ku, Nagoya-shi, Japan Phone (Main): Fax: Daiichi Kyogyo Bldg., , Awaza, Nishi-ku, Osaka , Japan Phone (Main): Fax: Park-Hills Jonan Bldg., 5-27, Teramachi, Naka-ku, Hiroshima , Japan Phone (Main): Fax: Hakata Sun-City Bldg. 2, , Hakata Station Higashi, Hakata-ku, Fukuoka , Japan Phone (Main): Fax: , Ryoke, Kawaguchi, Saitama Pref , Japan Phone (Main): Fax: , Matsu, Nishinari-ku, Osaka , Japan Phone (Main): Fax: , Miyanomae, Fukushima, Sanda, Hyogo Pref , Japan Phone (Main): Fax: Ueno, Iwatsuki, Saitama, Saitama Pref , Japan (in Iwatsuki Industrial Park) Phone (Main): Fax: Shanghai Office : KAWATA (SHANGHAI) CO., LTD. No.3305, JIN-DU RD., XINZHUANG INDUSTRIAL ZONE, MINHANG DISTRICT, Shanghai China Phone: Fax: Suzhou Office C5063 No.209, Zhuyuan Road, Suzhou NEW DISTRICT, SUZHOU, JIANGSU CHINA Phone: Fax: Tianjin Office Tianjin Riverfront Square Room No. 2807, No. 11 ShiYiJing Road, No. 81 Hedong District, Tianjin China Phone: Fax: Shenzhen Office Tian An International Bldg. A-1601 Renmin Nan Road, Luohu-Qu,Shenzhen-city China Phone: Fax: Guangzhou Office Room 2401, metro plaza, No.183 Tianhe North Road, Guangzhou China Phone: Fax: Hongkong Office : KAWATA MACHINERY (HK) LIMITED. Room 301, 3rd Floor Sun Hung Kai Centre 30 Harbour Road, Wan Chai, Hong Kong Phone: Fax: Taiwan Office : TAIWAN KAWATA CO., LTD. 1Fl., No. 6-1 Gu-ang Hwa Nan Street, Hsinchu, Taiwan R.O.C. Phone: Fax: HomePage: Thailand Office : KAWATA (THAILAND) CO., LTD. 135/ th Fl., Amonphan 205 Tower 2 Soi Ratchadapisek 7(Nathong), Ratchadapisek Road, Dindeang, Bangkok Phone: Fax: Vietnam Hanoi Representive Office : KAWATA (TAHILAND) CO., LTD. C2, Tuoi Tre Lane, Hoang Quoc Viet Street, Hanoi-City, Vietnam Phone: Fax: Malaysia Office : KAWATA MARKETING SDN. BHD. No.16-3A, Commericial Centre Jalan 3/109C, Taman Abadi Indah Off Jalan Kulang Lama, Kuala Lumpur, Malaysia Phone: Fax: Singapore Office : KAWATA PACIFIC PTE. LTD. No.91 Defu Lane Swee Hin Building, Singapore Phone: Fax: Jakarta Representative Office : KAWATA PACIFIC PTE. LTD. APARTMENT SEMANGGI, 10th Fl., Unit10-02 JI, Gatot Subroto Kav.53B, Petamburan, Jakarta Pusat Phone: Fax: Philippines Office : KL Automation Equipment Sales & Services (KAWATA REPRESENTATIVE OFFICE) 38 Dona Juliana St., Filinvest East Subd, Marcos Hi-Way Cainta Rizal, 1900, Philippines Phone: Fax: U.S.A. Office : CONAIR KAWATA Sales & Service CO. 455 Allegheny Blvd, Franklin, PA 16323, U. S. A. Phone: Fax: China Plant : KAWATA MACHINERY MANUFACTURING (SHANGHAI) CO., LTD. No. 3305, Jin-Du Road, Xinzhuang Industrial Zone, Minhang District, Shanghai China Phone: Fax: Malaysia Plant : KAWATA-ENGE MFG. SDN. BHD. Lot Tuanku Ja'afar Industrial Park Sungai Gadut, Seremban, Negeri Sembilan Darul Khusus, Malaysia Phone: Fax: Sep Mar Jul Oct Sep Jun Oct Mar Apr Jan Oct Mar Sep Jun Jan May 1980 Jan Aug Apr Mar Jan Jun Aug May 1988 Sep Jun Jul Sep Nov Jan Dec May 1993 Sep Jan Mar Apr Mar Apr. KAWATA MANUFACTURING established by Masateru Kawata at Nishinari-ku in Osaka, and was mainly involved in designing and manufacturing the machinery and metal molds for manufacturing rubber goods. Started manufacturing plastics processing machinery, leading the development of chemical industry. Reorganized to an incorporated entity named KAWATA MANUFACTURING CO., LTD., and Masateru Kawata appointed as the first president (capital 250,000 JPY). Developed an extruder, and simultaneously developed extrusion-related equipment for manufacturing pipes, corrugated sheets, sheets, etc. Established Bainan Plant at Nishinari-ku in Osaka. Started manufacturing high-speed fluid mixing kneaders (SUPER MIXER). Obtained utility model right for an automatic loader (AUTOLOADER), and went into full commercial production immediately. Opened Tokyo Office at Taito-ku in Tokyo. Established Sanda Plant in Miyanomae, Fukushima, Sanda, Hyogo Pref. Technical cooperation with Conair Inc. in the U.S. on automatic colorant measurement machine (AUTOCOLOR). Opened Nagoya Office. Technical cooperation with Krauss-Maffei in Germany on a plastics processing machine (SUPER GRUSH MIXER). Technical cooperation with Dr. Rodrich Graf (West Germany) on dehumidifying dryer (CHALLENGER). Tokyo Office moved to Adachi-ku in Tokyo. Head Office moved to Awaza at Nishi-ku in Osaka. Tokyo Office name changed to Tokyo Branch. Masateru Kawata appointed as chairman and Teruhiro Kawata as president. Technical corporation with TOYO INK MFG. CO., LTD. on a vibrating mixer for processing powder and grain (SUPER FLOATER). Tokyo Branch name changed to Tokyo Plant, and newly established Tokyo Branch at Chuo-ku in Tokyo. KAWATA MANUFACTURING CO., LTD. company name changed to KAWATA MFG. CO., LTD. Obtained a patent in Japan for a dehumidifying dryer (CHALLENGER) (Patent No ). Reinstated Chairman Masateru Kawata as president. Reexported the technology of a resin drying system for CD (Compact Disc) to Conair Inc. Tokyo Plant moved to Kawaguchi, Saitama Pref., and the old plant closed. Developed the world's first microwave continuous dryer (DRYTOP). Received a subsidy for new technology and development from the Ministry of International Trade and Industry, and Industrial Technology Award from Osaka Industrial Research Association. Michinosuke Ota appointed as president. Technical corporation with Axiomatics (present Trexel Inc.) in the U.S. on an automatic continuous moisture sensing system (AXIOMETER). Established a local corporation KAWATA U.S.A. INC. in the U.S. Established a local corporation KAWATA MF Singapore PTE. LTD. in Singapore. Established THERMOTEQ INC. at Nishinari-ku in Osaka. Listed the stock on over-the-counter market on the Japan Securities Dealers Association. The local corporation in Singapore name changed to KAWATA PACIFIC PTE.LTD.. Established a local corporation KAWATA-ENGE MFG. SDN. BHD. in Malaysia. Developed the world's first dehumidifying dryer "CHALLENGER II" with ADS ceramic adopted as adsorbent. Tokyo Branch moved to Kawaguchi, Saitama Pref. Opened a representative office in Shanghai in China. Established a local corporation KAWATA (SHANGHAI) CO., LTD. in Shanghai in China. Merged Tokyo Branch into Higashi-Nihon Division (present Higashi-Nihon Sales Department) Apr Apr Jul Nov Jan Apr Aug Oct Apr Jul Apr Oct Apr May 1999 Jun Sep Dec Feb Apr Jul Aug Oct Jan Mar Aug Sep Dec Feb Mar Apr Sep Jan Feb Sep Mar Jul Jul Dec Apr Oct Jun Feb. Opened Guangzhou Office in Guangzhou in China. Technical corporation with Toyota Motor Corp. and TOYO INK MFG. CO., LTD. on a gravimetric quantitative feeder (SYNCHRO AUTOCOLOR). Started selling the gravimetric quantitative feeder (SYNCHRO AUTOCOLOR). Obtained an exclusive right to sell extrusion molding control system from inoex in Germany, and started sales. Extended and improved Sanda Plant, and integrated all activities of Osaka Plant into Sanda Plant. Opened Philippines Representative Office in the Philippines. Established a local corporation KAWATA THAILAND CO., LTD in Thailand. Developed the world's first material loading/drying system for DVD production. Sent warning letters to other companies in the same trade on sales of similar products with the same trademarks such as AUTOCOLOR and AUTOSCALE. Established a local corporation KAWATA MACHINERY MANUFACTURING (SHANGHAI) CO., LTD in Shanghai in China. Obtained an exclusive right to sell plastics granulators from Rapid in Sweden, and started sales. Completed Shanghai Factory in China, and started full-scale manufacturing of plastic processing machinery. Michinosuke Ota, President, won the Award of Director-General of the Science and Technology Agency. Obtained ISO9001 certification, the international standards for quality assurance. Michinosuke Ota appointed as chairman, and Toshimasa Ota as president. Developed environmental equipment "PET Recycle System" and displayed it at "IPF 99" (Tokyo). Established KAWATA TECHNO SERVICE CO., LTD at Nishi-ku in Osaka. Established a local corporation TAIWAN KAWATA CO., LTD in Taiwan. Started production of new-model MCF-RIM (Reactive Injection Molding). Osaka Plant repaired and improved. Capital increase by public offering of 600,000 shares. Opened Tokyo Office at Chiyoda-ku in Tokyo. Completed construction of an automated warehouse at Sanda Plant. Opened sales offices in Shenzhen and Tianjin in China. Sanda Plant enlarged and improved (Completed construction of MCF development factory). Completed the world's first MCF (Micro Cellular Foam)-RIM system, and started sales. Developed a granulation and volume reduction system for waste plastic (SUPER ADD-ON MIXER). Partnership with Haruna Co., Ltd. on Injection Molding System for Undried Resins (ECOMAK). Opened a demonstration center for a granulation and volume reduction system for waste plastic in Saitama Pref. Established KAWATA RAPID JAPAN CO., LTD. at Nishi-ku in Osaka jointly with Rapid Granulator AB in Sweden. Completed construction of the second Shanghai factory in China. Established a local corporation Kawata Machinery (HK) Limited in Hong Kong Special Administrative Region of China. Opened a representative office in Tianjin in China. Developed MCF(Micro Cellular Foam)-extrusion molding system. Opened Suzhou Office in Suzhou in China. Opened Germany representative office in Germany. Established KAWATA (TIANJIN) INTERNATIONAL TRADE CO., LTD. In Tianjin in China. Listed on the JASDAQ Securities Exchange, Inc. Acquired all shares of ML Engineering Co. Ltd, making this company a wholly-owned subsidiary. Completed construction of the 3rd Shanghai Factory. Naoto Yukawa appointed as president. February, 2008: Acquired the certificate of international standard ISO14001 of environmental management system for all the companies.

3 Plastics have supported civilization since they were invented in the 20th century. They are used in home appliances, which greatlyshorten cooking, cleaning and washing time; to name a few. They are also used in computers that lie at the core of the evolving information society and stimulate our children's sensitivity, and even in rockets that give us big and bold dreams. Plastics are found in our daily commodities ranging from food containers to high-tech gadgets, which have made life more convenient and enjoyable for us. Since our founding in 1935, KAWATA has been making and selling plastic processing equipment and systems. Today, while feeling the air of a new age, we are promoting technological development with a global perspective on the environment and resources. As a leading pioneer in the plastics industry we believe our technology makes a significant contribution to society. the Present and the Future

4 Diverse Applications Plastics are used in many fields from food containers to the aerospace industry. In fact, because of advantages such as heat resistance, high strength, light weight, electrical insulation and dimensional stability, engineering plastics can be found in automobiles, electronic equipment, information storage media, medical supplies and food trays, and they have contributed tremendously to the technological advances in all these fields. Moreover, new products including super-engineering plastics for the aerospace industry have been developed one after another. Advanced Technologies and Excellent Services Perceiving the great potential of plastics, KAWATA, as a pioneer in the plastics industry, has explored the frontiers of technology for plastics processing from early on. We have developed innovative dehumidifying dryers and the world s first continuous moisture sensing system, RIM system and MCF extruder, which are mainly used for engineering plastics. In addition, we concentrate on developing human resources to offer customers not only people-friendly technologies but excellent services. Coexistence of Man and Nature Undeniably, plastics have served us in many ways and fields. Yet, we are facing the problem that used and discarded plastics seriously harm the natural environment. Aimed at environmental protection, KAWATA is researching technologies for recycling waste plastics and adapting existing systems to biodegradable plastics. Moreover, as an effort before recycling is needed, we have already developed the control technology that can create good quality products with a minimum of materials, such as a resource-saving system for plastic foam. KAWATA started business in 1935, and entered the plastic molding processing field, taking the lead of other companies. As a Specialist of Labor-saving Equipment in Molding Plants, we have provided high quality Only One products which match customer needs with the advanced technology. Plastic products which have enriched our lives more have made rapid progress as information technology (IT) develops. KAWATA has worked toward manufacturing and marketing our products along with the tide. In recent years, we have provided products and service in a wide range of the business fields such as automobile and molding processing of the most advanced parts which are the core of liquid crystal and plasma displays, and cellular phones. How can we make user-friendly products in the high-performance mold processing, save labor in manufacturing processes, eliminate waste of process material, and reduce the effect on the environment? In order to achieve our philosophy since the establishment, KAWATA Group will devote itself to making each product with its whole heart, sincerely address many challenges, and continue to offer new ideas with continuous development of technology and never-ending efforts of passionate employees across the world. We believe that all the employees in KAWATA Group keep on creating value for customers, suppliers, and society through development, manufacturing, sales, and service in the future.

5 As "Only One Company", KAWATA strives to further increase on-site problem-solving capabilities brings new technologies to the world, and create value for you. President Naoto Yukawa

6 Processing Machines and Systems to Establish Fully Automated Factories (1) Outdoor silo Addon hopper Selectronic system to meet increasingly advanced user needs (granules) In KAWATA s proprietary Selectronic system, units of each process are connected to establish fully automated plastic molding factories. In addition to versatile dryers and Autocolor, the adoption of Autobutor improves availability, focusing on a flexible manufacturing system (FMS) to meet advanced user needs. Material storage CHALLENGER(Dehumidifying Dryer) DA Series ADS ceramic integrally molded with zeorite as absorbent (the world s first) improves drying efficiency. Compact design saves space. Material Storage Drying Mobile Surge Bin SILO Conveying Hot Air Dryer ACEDRYER Z Dehumidifying Dryer For Light Guide Plate Molding CHALLENGER Vacuum Loader AUTOLOADER Dehumidifying Dryer CHALLENGER( s first adoption of ADS ceramic as absorbent) Vacuum Dryer DECO

7 Plastic Business Department Diverter valve Pneumatic roots blower AUTOLOADER(Vacuum Loader) Barrow hopper Rotary feeder Panel AUTOCOLOR (Gravimetric Batch Blender) Vacuum roots blower ACA Series Weighting accuracy of FS0.25% or less (ACA-400/600) Instant and complete discharge of materials, Easy cleaning Panel H TANK AUTOBUTOR Center panel Drying hopper Processing Machines JUST THERMO(Mold temperature controller) Addon hopper Granulator DYNACOOL(Mold cooling unit) ACEDRYER (Hot air dryer) ADA Series Microprocessor PID control provides accurate drying temperature. CHALLENGER (Dehumidifying Dryer) DF-ZA Series High-potential (All-in-one system integrating conveying functions), low-cost dehumidifying dryer Blending Temperature Control Dehumidifying Dryer For Optical Disc Molding CHALLENGER Volumetric Batch Blender AUTOCOLOR Gravimetric Synchronized Feeder SYNCHRO AUTOCOLOR Granulation Mold Temperature Controller JUSTTHERMO Large Dryer For PET (bottle/fiber/film) Gravimetric Batch Blender AUTOCOLOR Low Speed Granulator G MASTER Mold Temperature Controller JUSTTHERMO

8 Processing Machines and Systems to Establish Fully Automated Factories (2) Powder and grain mixing plant Powder and grain mixing system panel A fully automated blending system to rationalize a production process s technology has integrated each unit into a complete system for the automation of a production process. The automated blending process helps rationalize production and keep the production environment clean. (powder) Stabilizer service hopper Automatic stabilizer weigher AUTOLOADER Cyclone bag filter AUTOSCALE Tank Blower Silo Extruder Control panel SUPERMIXER(cooling type) SUPERMIXER(gelation type) Plasticizer tank Acceptance operation panel Compressor

9 Plastic Business Department Material Storage Mixing Mobile Surge Bin SILO High Speed Floating Mixer SUPERFLOATER High Speed Fluidizing Mixer SUPERMIXER Pneumatic Conveying Unit POWDER LOADER Gravimetric Batch Blender AUTOCOLOR High Speed Fluidizing Mixer SUPERMIXER (Gelation type) Measurement Temperature control Powder/Pellet Automatic Measuring Feeder AUTOSCALE Mold Temperature Controller JUSTTHERMO High Speed Fluidizing Mixer SUPERMIXER (Inverter type) Measurement Mixing Mixing/Cooling Automatic Measuring Unit For Powder/Pellet HOPPER SCALE High Speed Fluidizing Mixer (desk) PICCOLO High Speed Fluidizing Mixer SUPERMIXER (Cooling type)

10 Earth-friendly Environmental System Equipment for a Resource Recycling-based Society Life again to Plastic Wastes Kawata's waste plastics recycling technology contributes to a resource recycling-based society. Granulator Dump waste plastics Pneumatic separator Process Illustration of Addon Mixer Pouring water Charging scrap plastics Charging pigment/ stabilizer/extender Mixing/ Kneading Temperature rise/ Heat shrinking Semi-gelation Cooling/ Crushing/ Drying Discharging Recycled pellet High speed flowprocessing

11 Environment System Department Facilities inside the ECO Technical Center 500kg/h waste plastic granulation and volume reduction system test line Plate chain conveyor Stock tank Magnetic separator SUPER ADD-ON MIXER () (Type:EM-500) Cooling mixer Granulated substances discharged Granulation System Sample Flow Magnetic separator Receiving hopper Carrying in 3.7kW INV Granulator Dump waste plastics Pneumatic separator ECO Technical Center (Saitama Pref.) Cyclone Feed water Blower Classifying hopper Control board for mixers Integrated control board for mixers and conveying units Blower unit 11kW 55kW Control board for granulator Oil temperature regulator Plate chain conveyor 200kW SUPER ADD-ON MIXER Cooling mixer 15kW Freight conveyor hanger frame Freight conveyor (for stocking Carrying out granulated substances)

12 MCF Development Group Arrival of Plastics Foaming: The Development of Microcellular Foaming (MCF) System The Microcellular foaming process, which was initially researched by MIT (the Massachusetts Institute of Technology), has produced microcellular foams with cell sizes smaller than 30m and cell densities greater than 10 8 cells/j by using an atmospheric gas such as CO2 or N2 as a blowing agent. Based on the research results at MIT, KAWATA developed the first MCF-RIM system in the world for thermosetting plastics such as polyurethane resins, and then succeeded in developing a MCF-extrusion system for thermoplastics. The MCF-RIM system and MCF-Extrusion system consist of a raw material metering unit, a supercritical fluid (SCF) metering unit and a resin-gas mixing unit, and a main extrusion unit, a SCF metering unit and a temperature control unit, respectively. MCF-RIM Molding Machine and System MCF-RIM Extrusion Molding Machine and System MCF Process In a MCF process, a supercritical fluid of CO2 or N2, which is inexpensive and environmentally friendly, is used as a blowing agent to produce microcellular foamed plastics. Advantages of MCF Molding 1) Cell size control 2) Product weight reduction without decreasing its strength 3) Properties of high thermal and electric insulation, and low dielectric constant 4) Possibility of new material development through the use of microscopic cells 5) Non-CFC blowing agent using an atmospheric gas such as CO2 or N2 Microfoam Technical Center SCF metering unit for both CO2 and N2 Service Center for Foam Molding Microfoam Technical Center in Sanda Factory Microcellular Foams Our service center is available for any technical consultation on foam molding of thermosetting and thermoplastic resins, including RIM and extrusion molding. Expert engineers will respond to your requests ranging from sample molding and experimental research to mass production facilities.

13 Equipment from New Business Equipment for Medical Care, Foods, and Cosmetics Safer, Accurate, and Low Price in Japan and Asia KAWATA offers manufacturing lines for pharmaceuticals, foods, and cosmetics. Thank you for your many years of patronage of KAWATA equipment, mainly mixing kneaders, in the manufacturing field of pharmaceuticals, foods, and cosmetics. We have newly expanded our lines of products. We provide high quality products with both KAWATA's technology and low price, and also we can promise the perfect after service. Charge Tablets Temperature Control Mixing Lifting/Reversing Machine LIFTER Mold Temperature Controller JUSTTHERMO High Speed Fluidizing Mixer SUPERMIXER High Speed Fluidizing Mixer (desk) PICCOLO Conveying Granulation Conveying Pneumatic Conveying Unit POWDER LOADER Low Speed Granulator G MASTER High Speed Fluidizing Mixer SUPERMIXER (for pharmaceuticals, foods, and cosmetics) Ultra Low Speed Conveying Unit RIPPLE FEEDER Other Business Line Equipment required for manufacturing processes of solid medicines, foods, and cosmetics such as raw material conveying, weighing, granulating, sizing, and mixing.

14 Technology Development KAWATA s technology development places top priority on customer satisfaction. Here are ideas and actions that create the future process technology. Technology Development: Starting with Market Analysis "What do customers require and what are the current needs?" We at KAWATA get started by finding the answers to these questions. User opinions and contemporary needs monitored through our steady market activities form the basis of KAWATA s highly innovative and technologically advanced products. We are always seeking high quality and reliable products that meet every requirement for plastics processing. Personnel Rotation System: To Foster Engineers with Extensive Knowledge from R&D to Manufacturing With an eye toward developing superior technology, KAWATA adopts ideas and proposals in many directions, including joint research and development with M.I.T. in the USA, plastic material users and manufacturers, the Technology Research Institute of Osaka Prefecture and the Osaka Municipal Technical Research Institute. Naturally, for fostering human resources, we have adopted an interdepartmental personnel rotation system that our engineering staff is periodically involved in design and development of various products and systems so that they can have extensive knowledge and experience. From our market analysis our product development group is involved in industry-university joint research along with new product development, playing an important role in the company's present and future with our design department. Advanced Development System: To Create the State of the Art High-performance equipment that helps skilled engineers extend their ideas is vital for a company to survive today's intense technological competition. KAWATA has systematic research facilities that enable the staff to develop highprecision processing machines and highly productive systems. In addition, our computer-integrated systems that carry large amounts of diverse information speed up our technological development. We are always enthusiastic about developing state-of-the-art technology and products and applied technology through our continuous basic research.

15 Production ReliabilitySynonym of KAWATA Brand: Quick Supply of High-Quality and High-Precision Products Tokyo Plant Total Production System: A Result of Cross-divisional Cooperation KAWATA s high-quality and high-precision products shipped from our production division are the embodiment of the cooperation with other divisions: the sales division provides information on customer demands that is later reflected in products; and the technology development division finds innovative technologies and designs new equipment and systems. The reliability of the KAWATA brand results from the cooperation of all departments. Flexible Production Line: To Meet Higher Customer Demands In order to deal with rapid changes in the industrial environment along with ever-increasing customer demands, we at KAWATA have promoted the construction of flexible production lines from our early days. KAWATA's Total System, a combination of various machines, enables us to seek thoroughly the ways to enhance product quality and accuracy while reducing costs. Under the principle of supplying the right amount of products when necessary, we provide customers with a steady supply of cost-effective products from our factories in Tokyo, Sanda and Shanghai. Quality Control System: By Technology and People To ensure the reliability of our products, KAWATA has a computer-controlled system including measuring instruments in various points of the production lines for strict quality control. It is not until equipment passes a set standard that it can be placed on the market with KAWATA s name. Of course, it is individual people that support the quality control. Our strenuous efforts and insistence on complete quality control won us ISO 9001 certification in May This shows that KAWATA offers flawless products and services from both technological and human perspectives. Sanda Plant

16 Sales Sales Personnel Represent KAWATA s Technology: Working as a Sales Engineer with Extensive Knowledge Sales Staff with Technical Knowledge One of the prerequisites for the professional sales staff who has direct contact with customers is to have technical knowledge. Since 58% of KAWATA s sales staff has a technical background, and every one of them carries a laptop, we are able to provide accurate and real-time information and appropriate advice for customers. The reliability, which KAWATA is proud of, results from the close relationship between customers and our sales staff. Total Customer Service: Our communication with customers, which starts with a consultation on installing KAWATA s machinery or systems, continues in the form of wide-ranging advice and our full after-sales service even after completing the installation. From Consultation to After-Sales Services

17 Management Computer-Integrated Company: Real-Time Information Exchange from Quality Data to Customer Demands Management Division: Information Base of KAWATA To meet customer demands promptly and to manage products properly, we link all branches, sales offices and factories of KAWATA throughout Japan to a computer network. This system enables us to obtain real-time information on material supply, sales, production, quality data, inventory and shipping schedules, and to provide necessary items where and when needed. The management division thus plays the role of a commander, gathering information from KAWATA all over Japan and sending it to each section.

18 Overseas Coexistence with the World: Heart and Technology China-1st Plant: KAWATA MACHINARY MANUFACTURINGSHANGHAICO., LTD. China-3rd Plant China-2nd Plant: KAWATA MACHINARY MANUFACTURINGSHANGHAICO., LTD. Malaysia Plant: KAWATA-ENGE MFG. SDN. BHD. U.S.A. Office: CONAIR KAWATA Sales & Service CO. Singapore Office: KAWATA PACIFIC PTE. LTD. Overseas Bases: Recognition of Differences in Cultural Values For our overseas strategies it is important to clearly understand the fact that of the world's 6 billion people, only 100 million are Japanese, meaning that what is common sense to Japanese is probably the same to only 1/60 of the world's population. Hence, we must try to understand other cultures and sense of values. Since launching CONAIR-KAWATA in the USA in July of 1986, we have opened sales offices in China, Thailand, Singapore, Taiwan and the Philippines, and plants in China and Malaysia. With full respect for the cultural values of the people who work and live there, we will develop in a mutually complementary manner, leading to a fruitful coexistence which we are striving toward. Technology Import and Utilization of Local Advantages In addition to developing new technologies, KAWA- TA constructively absorbs high technology from the West and introduces it to the Japanese plastic industry. Since our first international technology exchange with CONAIR in the USA in 1969, we have advanced and diversified our technology through cooperation with INOEX in Germany, RAPID in Sweden, EQUI- PTEC in France and TREXEL in the USA. Moreover, we are promoting further cost reductions, centering on production and sales structure in Japan, China, Malaysia and Southeast Asia. Technology Transfer to 30 Countries While absorbing advanced technology from other countries, KAWATA is actively exporting our technology for plastic recycling and other techniques related to the effective utilization of resources to other countries, as well as our processing machines and systems. Our CD resin drying system drew attention when exported to CONAIR Inc. in the U.S. in When exporting systems, we customize them to suit users in each country and also send engineers as necessary.