Acquisition

Maruwa Co Ld
20 October 2004


                                                                 20 October 2004
MARUWA CO., LTD.

3-83 Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN

                                  (Translation)
             MARUWA to purchase the shares of Kimmon Electric Co.,Ltd.

Nagoya- MARUWA CO., LTD. announced that MARUWA QUARTZ Co., Ltd.('QUARTZ'), a
consolidated subsidiary of MARUWA CO., LTD. has signed the basic agreement with
Kimmon Manufacturing Co.,Ltd. to purchase the entire issued shares of a
subsidiary to be established through the division of lighting business sector of
Kimmon Electric Co.,Ltd.('Kimmon Electric'), a subsidiary of Kimmon
Manufacturing Co.,Ltd., after the corporate resolution today.

Purpose of acquisition

The core business of MARUWA CO., LTD. and its subsidiaries (MARUWA group) is
electronic ceramics mainly for optical communications-related products, digital
TV-related products, LED-related products, and automobiles/ industrial
machineries-related products.  Recognizing possibilities in various lighting
industries in which LEDs are involved as our future extended business fields,
MARUWA is now engaging in development at element level.  The lighting business
of Kimmon Electric will suit our corporate business strategy.

Also, MARUWA was originally from pottery industry, and has been considered to
join the fields of industrial arts.  We see this lighting business as a part of
both lighting arts and electronic ceramics including LEDs.

Schedule of acquisition
Signed basic agreement                                    20 October 2004
To sigh agreement for transfer of shares                  Early March 2005
To complete transaction                                   1 April 2005

About Kimmon Manufacturing Co.,Ltd.

Name                         Kimmon Manufacturing Co.,Ltd.
Representative               Tadashi Sonobe, President and representative 
                             director
Head office                  2-3-6 Mukougaoka, Bunkyo-ku, Tokyo, Japan
Date of incorporation        July 1948
Principle lines of business  Manufacturing and sales of gas/water meters
Paid-in capital              3,157.5 million yen

About Kimmon Electric Co.,Ltd.
(The company to establish a new subsidiary through division of its lighting 
business sector)
Name                         Kimmon Electric Co.,Ltd.
Representative               Tsuneo Yamaoka, President and representative 
                             director
Head office                  TM21 Building, 1-53-2 Itabashi, Itabashi-ku, Tokyo, 
                             Japan
Date of incorporation        November 1967
Principle lines of business  Manufacturing and sales of lighting appliances
Paid-in capital              295 million yen
Shareholders                 Kimmon Manufacturing Co.,Ltd.                100%


Shareholding percentage by MARUWA in a new subsidary
Before transfer                                        0%
After transfer                                       100%

Considerable effect on financial results

The acquisition will have no effect on consolidated net sales and income of
fiscal 2005, ending March 2005. As for the outlook for fiscal 2006, ending March
2006, MARUWA will refer within the announcement of the consolidated final
results for fiscal 2005.

END.




                      This information is provided by RNS
            The company news service from the London Stock Exchange