First, I would like to extend my warmest greetings to our shareholders. I am very grateful for your kind consideration and support for our company's business activities.

Newspapers and other mass-media outlets have been expressing their concerns about a 'so-called double-dip recession' since autumn 2009. In fact, such fears are heard among other industries that focus on the Japanese domestic demand. Leaving aside the economies of emerging countries like China, a full-fledged economic recovery of conventional major markets centered around the United States is still beyond reach due to the impact of the world-wide economic recession.

However, looking at the trends in the electronics industry, we can see a continued upswing in the Chinese market, which enjoys booming demand for home electric appliances including flat-screen televisions and mobile terminals, and robust sales of automotive electronic components. The Japanese electronics industry is also seeing a gradual upturn in the sales of semiconductor packages and electronic device boards, which has been promoted mainly by increasing global demand for such products due to the positive effects of newly-developed PC operating systems and a booming smartphone market.

Our company has been maintaining a leading position in the industry of electronic board treatment agents by using copper surface treatment technology as our core technology. In this current economic environment, we are further striving to develop new chemical treatment processes by utilizing our unique technologies, and gradually introduce them to market. Please look forward to our new products and activities.

We have also increased process efficiency by optimizing agent compositions and consequently reduced environmental loads. With these efforts, we continuously provide reliable services that only Mec can offer customers, with an eye to stimulate demand not only in the Japanese market but also in the growing markets of East Asia.

We will keep dedicating all of our strengths to meeting your expectations in the future. We would appreciate your further support and encouragement.

Sincerely,

Kazuo Maeda
CEO & President