Notice Regarding Basic Agreement on Transfer

FOR IMMEDIATE RELEASE

March 30, 2012

Company name: Hitachi Chemical Co., Ltd. Representative: Kazuyuki Tanaka President and Chief Executive Officer (Code number:4217 First Section of the Tokyo Stock Exchange, First Section of the Osaka Securities Exchange) Contact: Atsushi Kato Manager, Corporate Communication Center, CSR Management Sector

TEL:81-3-5381-2370

Company name: Nitto Denko Corporation Representative: Yukio Nagira President (Code number:6988 First Section of the Tokyo Stock Exchange, First Section of the Osaka Securities Exchange) Contact: Shinya Shioji General Manager, Corporate Communication Department

TEL:81-6-6452－2101

Notice Regarding Basic Agreement on Transfer (Acquisition) of Semiconductor Encapsulating Materials Business (Excluding Encapsulating Materials Business for Optical Semiconductors)

Hitachi Chemical Co., Ltd. (“Hitachi Chemical”) and Nitto Denko Corporation (“Nitto Denko”) have decided by resolution at their respective Boards of Directors meetings held on March 30, 2012 to enter into a basic agreement for Nitto Denko to transfer its semiconductor encapsulating materials business (excluding encapsulating materials business for optical semiconductors) to Hitachi Chemical, and for Hitachi Chemical to acquire this business (such transfer and acquisition, hereinafter the “Business Transfer (Acquisition)”). The details are as follows.

1. Reason for the Business Transfer (Acquisition) Hitachi Chemical anticipates an increasing demand on the semiconductor encapsulating business, one of the main businesses of Hitachi Chemical’s electronics materials business line. To survive in the market where the competitiveness is increasing domestically and globally, Hitachi Chemical considers that it is necessary to enhance the business bases by developing cutting-edge materials and expanding the market share. As Nitto Denko has commenced the 2-year medium-term management plan, “Team-NITTO ‘Creation

2012’ ” aiming to achieve “growth of business”, “quality improvement” and “cultivation of human resources”, Nitto Denko will focus the corporate resources on “Green, Clean and Fine” (environment, energy, and life science), which will lead to the creation of new core businesses. Both companies have discussed about the Transfer and have agreed that transferring the Business to Hitachi Chemical is the best solution for both. The Transfer enables Hitachi Chemical to establish a strong market position in the encapsulating materials business through adding the new product lines, expanding the sales channels and increasing the business opportunities, and realize synergies with other semiconductor related material businesses. As a result, revenue from the entire electronics materials business sector is expected to grow. Nitto Denko considers that transferring the Business, which mainly focuses on the transfer molding where the strong complementary relationship with Hitachi Chemical exists, will improve the quality of the customer services. Nitto Denko will allocate all the resources in the Business into other semiconductor related businesses, which will enable Nitto Denko to manufacture value-added products and lead to the strong position in the semiconductor industry. Details of the Transfer will be further discussed by both companies.

2. Overview of the Business Transfer (Acquisition) (1). Outline of the Business Transfer (Acquisition) I. All the outstanding shares of NITTO ELECTRONICS KYUSYU CORPORATION, the manufacturing base of the Business in Japan. II. All the outstanding shares of NITTO DENKO ELECTRONICS (MALAYSIA) SDN. BHD., the manufacturing base of the Business in Malaysia. III. Other assets, liabilities, agreements, etc. pertaining to the Subject Encapsulating Materials Business of Nitto Denko.

In addition to the above, the personnel necessary for the execution of the Subject Encapsulating Materials Business.

3. Overview of Companies Involved (As of March 31, 2011) (1) Company name Hitachi Chemical Co., Ltd. Nitto Denko Corporation (2) Head office address 1-1, Nishi-Shinjuku 2-chome, 2-5-25,Umeda, Kita-ku, Osaka, Shinjuku-ku, Tokyo, Japan Osaka,Japan (3) Name and title of Kazuyuki Tanaka, President and Yukio Nagira, President representative Chief Executive Officer (4) Business description Manufacture and sale of Manufacture and sale of industrial functional materials, advanced tapes, optronics and medical & components and systems membrane (5) Paid-in capital 15,454 million yen 26,783 million yen (6) Date of establishment October 10, 1962 October 25, 1918 (7) Net assets 290,311 million yen 419,673 million yen (Consolidated basis) (Consolidated basis) (8) Total assets 432,184 million yen 653,961 million yen (Consolidated basis) (Consolidated basis) (9) Major shareholders and Hitachi, Ltd. 51.2% JP MORGAN CHASE BANK shareholding ratio 380055 5.5% Japan Trustee Services Bank Ltd.(trust account) 5.4%

(10) Number of employees 15,930 (Consolidated basis) 25,402 (Consolidated basis) 4,015 (Non-consolidated basis) 4,722 (Non-consolidated basis) (11) Relationships between Capital relationships There are no items to report. Hitachi Chemical and Personnel There are no items to report. Nitto Denko relationships Transaction The companies involved supply parts to each relationships other and license patent rights to each other. Status as a Related There are no items to report. Party

4. Overview of Subsidiaries Subject to Business Transfer (As of March 31, 2011) (1) Company name NITTO ELECTRONICS NITTO DENKO ELECTRONICS KYUSYU CORPORATION (MALAYSIA) SDN. BHD. (2) Address 2307-2, Yoshida, Yoshinogari-cho, No.2, Persiaran Budiman, Seksyen Kanzaki-gun, Saga , Japan 23, 40300, Shah Alam, Selangor Darul Ehsan, Malaysia (3) Name and title of Koji Kitazaki, Representative Koji Kitazaki, Representative representative Director Director (4) Business description Manufacture and sale of Manufacture and sale of semiconductor encapsulating semiconductor encapsulating materials, semiconductor mold materials encapsulating cleaning sheets (5) Paid-in capital 436 million yen 52,500 thousand Malaysian ringgit (6) Date of establishment April 1, 2002 December 1, 1989 (7) Major shareholders and Nitto Denko 100％ Nitto Denko 100％ shareholding ratio (8) Number of employees 73 399 (9) Relationships with Hitachi Capital relationship There are no items to report. Chemical Personnel There are no items to report. relationship Transaction There are no items to report. relationship

5. Schedule

Signing of business transfer agreement End of April, 2012 (planned) Effective date of business transfer October 1, 2012 (planned)

The Business Transfer (Acquisition) will be implemented on condition of the obtainment of all necessary licenses and approvals.

6. Future Outlook Expected influence of this matter on the business performance and financial position of Hitachi Chemical and Nitto Denko is minor.

Contacts:

Hitachi Chemical Co., Ltd. Public and Investor Relations Group, Corporate Communication Center, CSR Management Sector TEL: 81-3-5381-2370

Nitto Denko Corporation Corporate Communications Group, Corporate Communications Department TEL: 81-6-6452-2215