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TDK Closes TDK Brand Recording Media Business Transfer

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TDK Closes TDK Brand Recording Media Business Transfer

http://www.global.tdk.com/news_center/pressTDK Press Release

August 1, 2007

TDK Corporation (NYSE: TDK) announced today that it closed on August 1, 2007, Tokyo time, the approximately US $261 million (based on Imation's recent average share price) board-approved transaction to transfer the TDK brand world wide recording media business and a license to use the TDK brand name for current and future recording media products to Imation Corp. (NYSE: IMN). The total consideration included shares of Imation Corp. common stock constituting approximately 16.6 percent of the total outstanding Imation Corp. shares and cash. Further details of the transaction are provided below.

  1. Transfer of TDK Subsidiaries to Imation
    Under the terms of the deal, TDK has transferred to Imation the following TDK subsidiaries.
    1. Corporate Name TDK Marketing Corporation TDK (Australia) Pty. Ltd. TDK Polska Sp. z.o.o. TDK Marketing Europe GmbH TDK Recording Media (Hong Kong) Co., Ltd. TDK Online Services Corporatrion
    2. Representative Kuniyoshi Matsui Scott Brownscombe Marco Donadoni Marco Donadoni Tamiya Morita Jim Browning
    3. Location Japan Australia Poland Germany China (Hong Kong) U.S.A.
    4. Established March 1981 April 1979 August 1995 May 2003 November 1999 November 1999
    5. Business Sale of TDK brand recording media products in Japan Sale of TDK brand recording media products in Australia Sale of TDK brand recording media products in Europe Sale of TDK brand recording media products in Europe Sale of TDK brand recording media products in China Sale of TDK brand recording media products in the U.S.
    6. End of Fiscal Year March March March March March March
    7. No. of employees * 51 31 16 117 20 0
    8. Capital ¥920 million AUD$
    700,000    		 687,700 Zloty 20,025,050 Euro HK$
    25million    		 US$
    88,100
    9. Sales (FY2007) ¥16,752 million A$
    49,824 thousand    		 52,747,780 Zloty 281,021,535 Euro HK$
    92,249,668    		 US$
    83,093
    10. Share of voting rights before and after transfer (before/after) 100% (TDK subsidiary) /0% 75% (TDK subsidiary) /0% 100% (Indirectly held) /0% 100% (Indirectly held) /0% 100% (Indirectly held) /0% 100% (Indirectly held) /0%
    • * No. of employees are as of March 31, 2007. (Excluding secondees)
  2. Transfer of Certain TDK Assets
    Certain assets relating to the recording media business have been transferred from the following three subsidiaries transferred.
    1. Company TDK Electronics Corporation TDK Singapore (Pte) Ltd. TDK (Shanghai) International Trading Co., Ltd.
    2. Representative Jim Browning Osamu Katsuta Masahiro Imai
    3. Location U.S.A. Singapore Shanghai (China)
    4. Established September 1965 June 1977 February 1997
    5. Business Manufacture and sale of TDK brand recording media products Sale of electronic materials and TDK brand recording media products Sale of electronic materials and components
    6. Fiscal year-end March March March
    7. No. of employees * 152 69 103
    8. Capital US$5,050,000 S$126,050 1,659,160 yuan
    9. Sales (FY2007) US$203,177,231 S$329,242,208 744,478,475 yuan
    10. Assets for transfer Processing plant, Inventories Inventories Inventories
    • * No. of employees are as of March 31, 2007. (Excluding secondees)
  3. Information on Imation
    (1) Company Imation Corp.
    (2) Representative Frank Russomanno, President and CEO
    (3) Location Oakdale, Minnesota, U.S.A.
    (4) Business Imation was formed in 1996 as a spin off of 3M's Imaging & Information business. Imation is focused on the development, manufacture and supply of magnetic, optical, flash and removable data storage products. In addition to the Imation brand, Imation's global brand portfolio includes the Memorex brand.
  4. Transfer Schedule
    April 19, 2007: The board of directors approve the transaction.
    August 1, 2007: Transfer of shares and assets related to the transaction.
  5. Outlook
    TDK is currently in the process of determining the impact of the transfer on its consolidated operating results.

For further information, contact the Corporate Communications Dept.
Tel.: 81-3-6778-1055
E-mail: TDK.PR@tdk.com