To all KIMOTO fans

To our shareholders, business partners, customers, and employees and their families, we are deeply grateful for your continued support. We have announced our performance for the first half of the fiscal year and our full-year performance forecast.
We regret to inform you that we have determined it will be difficult to achieve the initially planned full-year performance forecast figures, and we have revised them downward. We sincerely apologize to everyone. We are very sorry.

The reasons for the revision and future outlook are as follows.

Bad News
1. Demand for touch panels, particularly for smartphones, has slowed down.
2. Our products were not adopted in popular smartphone models, leading to lower shipment volumes.
3. Sales plans for products other than FPD-5 (five flat panel display-related products) were delayed.

■Good News
1. Operating profit from July toConsolidatedSeptember of the current fiscal year was positive for the first time in 15 months.
2. The number of orders from customers we lost last fiscal year has increased.
3. The release of new products has led to an increase in expected new orders.
4. Overseas bases are mostly in the black.
5. The financial base of the business is stable.

We believe that the day we can meet your expectations is near, and we are working together as a company to recover our performance. We apologize for the concern and inconvenience caused to KIMOTO fans, and we hope for your continued support and encouragement.

Thank you very much for your cooperation.

October 30, 2015
KIMOTO Co., Ltd.
President and Representative Director Kazunobu Kimoto