> Pentax is a valuable trademark, and its value is increasing now  
> with the K-series dslrs.  I do not think they will leave it.

More info from DCWatch. Twice as large and much more profitable HOYA  
is swallowing Pentax but I'm sure they will keep their trade marks.  
Will this mean HOYA glass in Pentax lenses?


Basic agreement for HOYA, Pentax, and business integration

The digital camera maintains the imaging business of Pentax.

HOYA Ltd. and Pentax Ltd. announced that it basic agreed for the two  
companies to amalgamate on the 21st and October 1, 2007, and to do  
the management integration. The surviving company becomes HOYA. The  
name of the company of a new company is "HOYA Pentax HD (Eitide) Ltd.. "

President and Representative Director present Pentax Fumio Urano  
assumes the position of the new company director chairman and Hiroshi  
present HOYA representative execution post CEO Suzuki assumes the  
position of representative execution post CEO respectively. In  
integration, the common stock 0.158 stocks a common stock stock of  
Pentax of HOYA are allocated.

The two companies assume optics, the image, and the material to be a  
common technological base by business integration, and aim at the  
optimization of the business centering on each field of the life  
care, Optx, the information electronics, the eye caring, and the  
imaging system. Additionally, earnings to which the information  
electronics field and the eye caring field are steady are turned on,  
and it aims at strategic growth in the life caring field. In  
addition, the business structure is qualitatively converted by the  
vertical integration, and strengthening competitive edge is aimed at  
in the Optx field.

After it integrates it, each business field where "Business section  
to which the authority is transferred with a small headquarters" was  
assumed to be an indicator is reorganized. In a new company, it is  
assumed that HOYA and the brand of Pentax of each business field are  
made the best use of.

In the imaging system fields such as digital cameras and binoculars,  
the imaging business of Pentax is maintained. The differentiation is  
aimed at with the high value-added product, and it specializes in the  
field where competitive edge can be demonstrated. The same field is  
aimed at, and moreover, it locates, and the horizontal development is  
aimed at with the mother's body that invents a new technology of the  
optical equipment system in the life caring field and the security  
field.

It is assumed that it wants to attempt differentiating by raising the  
additional value that demonstrates the strong point of the two  
companies in each field for the intensification of the competition by  
the entry of gaining power Asian power and the appliance maker etc.  
in the digital camera field, and centers on the technology in  
addition to cost competitiveness.

In the Optx fields of the optical glass, the lens, and the digital  
camera module, etc. , the Optx business of HOYA and the optical  
component business of Pentax are integrated. The material lens, the  
processing, and the vertical integration to the module are aimed at  
from the design, cost competitiveness is improved, and the  
technological development power is strengthened at the same time.  
Moreover, the competitive edge that can correspond to the industry  
structure change in the future including Asian power is secured by  
using HOYA, the manufacturing base of Pentax, and the customer base  
mutually.

In the life caring field such as endoscopes, a medical business of  
HOYA and the life caring business of Pentax are integrated. The same  
field is aimed at, and it locates, and consistent development from  
the diagnosis to treatment is aimed at with the strategic growth  
field. Moreover, it aims at doubling the business scale by expanding  
the improvement of the product development power by the research and  
development investment and M&A and business and the marketing body  
poses.

The information electronics field such as the glass magnetic disks  
separates the Optx business from the electro Optx field of HOYA. It  
enhances competitiveness as a center business of the earning power  
after it integrates it and growth is aimed at.

The eye caring field of glasses and the contact lens separates a  
medical business from the eye caring field of HOYA. It aims at the  
information electronics field and a center business and the location  
growth that queues up from can the expectation of stable growth.

In other fields, the business of the two companies is maintained. The  
research and development section unites the R&D center of HOYA and  
the research and development headquarters of Pentax as a Corporate  
section. It improves the efficiency of the business selecting and  
intensively in the new field such as the measurement equipment where  
earnings or more are expected in the future while invested positively.

The two companies set up the integrated preparation committee that  
makes Hiroshi Suzuki execution by proxy post CEO of HOYA and  
President and Representative Director Fumio Urano of Pentax for  
management and the business in a new company after it integrates it a  
mirror trunk chairman. It is assumed, it is, and "An excellent each  
two companies, point is brought together in this committee, and a new  
system is produced jointly" in various systems.

HOYA Pentax HD that is a new company continues listing to the first  
in the Tokyo Stock Exchange market that HOYA is listing now. New  
stock reservation right etc. of the number of issue schedule stocks  
and the Pentax luminescence because of the address of a new home  
office of a company, total assets, the capital, and the amalgamation  
are assumed to make it public as soon as it fixes.

HOYA has the world top share in the glass magnetic disk base for  
Mascbrancs and HDD related to the semiconductor. Moreover, the  
optical glass and the lens bear the corner of the leading company.  
The consolidated sales amount at the period on March, 2006 is 344  
billion yen, operating profit 101 billion yen, and gross profit 75.6  
billion yen. The number of employees is 3,338 people.

Pentax is developing the endoscope etc. in the medical equipment  
field in addition to sales of the digital camera and the digital  
camera module. Sales at the period on March, 2006 are 142.2 billion  
yen, the operating profit three billion yen, and the gross profit 800  
million yen. The number of employees is 1,336 people.

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