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Cancellation of Designation of Securities Under Supervision (Confirmation) as well as Public Announcement Measure and Request for Improvement Report -Oki Electric Industry Company, Limited-

Update : Sep. 19, 2012

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[Tokyo Stock Exchange, Inc.]

TSE has cancelled the designation of Securities Under Supervision (Confirmation), as well as taken the Public Announcement Measure and requested an Improvement Report as follows.

1. Issue Name Oki Electric Industry Company, Limited stock
(Code: 6703, Market Division: 1st Section)
2. Cancellation of Designation of Securities Under Supervision (Confirmation)  
 (1) Date of Cancellation of Designation of Securities Under Supervision (Confirmation) Sep. 15, 2012 (Sat.)
    Provision Securities Listing Regulations, Rule 601, Paragraph 1, Item 10
(due to deeming as not falling under a delay in submission of the quarterly report)
 (2) Reason TSE designated the stock of Oki Electric Industry Company, Limited (hereinafter, the "Company") as Securities Under Supervision (Confirmation) because the Company had disclosed on Aug. 8, 2012 (Wed.) that the quarterly report would not be submitted by the deadline (Aug. 14, 2012 (Tue.)).
Today, TSE confirmed the submission of the report by the Company. As such, the designation of Securities Under Supervision (Confirmation) will be cancelled for the Company's stock as of Sep. 15, 2012 (Sat.).
3. Public Announcement Measure and Request for Improvement Report  
 (1) Date of Public Announcement Measure Sep. 14, 2012 (Fri.)
    Provision Securities Listing Regulations, Rule 508, Paragraph 1, Item 1
(Due to a public announcement being deemed necessary in cases where TSE has recognized a violation of the matters to be observed when conducting disclosure)
 (2) Improvement Report Submission Deadline Oct. 1, 2012 (Mon.)
    Provision Securities Listing Regulations, Rule 502, Paragraph 1, Item 1
(Due to improvements being deemed highly necessary in cases where TSE has recognized a violation of the matters to be observed when conducting disclosure)
 (3) Reason On Sep. 11, 2012 (Tue.), the Company disclosed inspection results of an external investigation committee on inappropriate accounting by the Company's overseas consolidated subsidiary as well as an overview of amendments to account settlement contents in past fiscal years based on such investigation results. In addition, the Company disclosed today that it plans to correct earnings reports, etc. in past fiscal years.
In the disclosed documents, it was discovered that (i) the former president of said subsidiary had taken a key role in improper accounting practices, such as overstating accounts receivable and failing to record liabilities, and (ii) the Company had disclosed the content of account settlement contents requiring material amendments from the first quarter of the fiscal year ended March 2008 to the fiscal year ended March 2012.
It was deemed that this case was solely conducted by the subsidiary responsible for sales in a certain country with regard to the printer business, a business unit of the Company group. Although the Company was not recognized to have given instructions and covered up the case, it was deemed that (i) the subsidiary failed to develop a system to monitor and check business execution by the former president and (ii) there was a problem in the Company's subsidiary management system and internal control.
This case is deemed to (i) be in violation of matters to be observed related to timely disclosure, (ii) have considerable influence on investment decisions and (iii) require public announcement. Thus, TSE shall implement public announcement measures.
Moreover, this is a case of improper disclosure caused by deficiencies in the timely disclosure system of the Company, and improvement of the Company's timely disclosure system has been deemed highly necessary. As such, TSE requires submission of a report containing the background and improvement measures.

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