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The soldering systems segment designs, produces and sells systems that perform soldering of printed circuit boards, which are used in a wide variety of home appliances, automotive applications and communication devices. In response to the environmental issues of the times, we sell systems that comply with CFC controls, as well as lead-free and VOC-free requirements, around the world. Of particular note is the lead-free reflow system launched in 1999, which has earned significant customer trust and a top share of the Japanese market. Demand for lead-free soldering systems has been soaring since 2000 and Tamura FA System's early launch of a lead-free system saw the company take top spot in terms of market share in Japan. In regard to reflow soldering1 systems (reflow systems), Tamura FA System introduced its TAR30-36PH lead-free air reflow system in December 1999, six months before any other company. In the wave soldering2 system (wave systems) field, the company introduced “Mr. FLIP,” an electromagnetic induction soldering bath and “One and Only Product,”3 in 1996. The lead-free trend triggered a dramatic increase in the price of solders, making Mr. FLIP, which reduces the occurrence of oxides, the vanguard of lead-free wave soldering systems. Electromagnetic induction soldering bath, “Mr. FLIP” These systems are delivered to electronics manufacturers and automakers, where they are utilized in soldering processes for PCBs that are found in flat-panel televisions, mobile phones, PCs, game consoles and other familiar everyday products. Lead-free soldering systems have become especially popular in China and Southeast Asia over the last few years. Tamura FA System has delivered around 1,500 systems to China and 1,000 systems to Southeast Asia. Sales are made through four offices in China based mainly in Shanghai, and three offices in Southeast Asia based mainly in Singapore. In October 2006, Tamura Furukawa Machinery Corporation was established as a joint venture with The Furukawa Electric Co, Ltd, increasing our share of the Japanese market to almost 50%. We intend to make further inroads into the Chinese market via our manufacturing plant in China held under this joint venture. 1.   Soldering process applied in surface mounting that makes use of an electric furnace. 2.   Soldering process in which boards are passed over a wave of molten solder. 3.   Tamura products are labeled “One and Only Products” when they sufficiently demonstrate Tamura's strengths and unique qualities in the market, outperform competitors' products and are well received by the market. Prices of soldering systems are currently falling due the emergence of Chinese-made lead-free systems. To improve competitiveness, we are enhancing production at our Suzhou Plant so that we will be able to supply high-quality, eco-friendly systems at low cost. In the China area, we seek to continue acquiring customers in Taiwanese electronics manufacturing services (EMS) as well as further develop global operations, with a more formidable presence in European and Indian markets. Brand Logo Determined ´Since October 2006 we have been marketing our entire soldering system range under the “Tria Epsilon” brand. In Greek, “tria epsilon” means “three E's,” in this case referring to Tamura's soldering product concepts of Ecology (environmental friendliness) and Economy (energy efficiency and low cost), and to Windows®XP Embedded, which is incorporated into our systems to improve reliability and operability. General brand logo Reflow system logo   Wave system logo Note: Market share figures within the “Tamura Group Business” section are taken from studies conducted by Tamura Corporation as of March 2007. PAGE TOP   (C) TAMURA Corporation, All rights reserved.