News Release
`
`FOR IMMEDIATE RELEASE
`
`
`Notice on Petition for Commencement of Corporate
`Reorganization Proceedings and Uncollectibility of Debts of
`Our Subsidiary
`
`
`Tokyo, Japan, February 27, 2012 – Elpida Memory, Inc. (Tokyo: 6665) (“Elpida”) hereby
`announces that Akita Elpida Memory, Inc. (“Akita Elpida”), our consolidated subsidiary,
`resolved at its board of directors’ meeting held on February 27, 2012 to file a petition for the
`commencement of corporate reorganization proceedings, and on the same day, filed the said
`petition with the Tokyo District Court. As a result, there is a possibility that claims against the
`said company may not be collected. Therefore, we hereby notify as follows.
`
`1. Grounds for the Petition
`Akita Elpida was established in July 2006 as a wholly owned subsidiary of our company, the
`only company in Japan that specialized in DRAM. Immediately after the establishment, Akita
`Elpida took over the semiconductor backend process businesses from Akita Electronics Systems
`Co., Ltd. and Akita Semiconductor Co., Ltd., a subsidiary of Akita Electronics, both of which
`were Hitachi, Ltd. group companies, and by doing so, Akita Elpida assumed the advanced
`technology and manufacturing expertise that the said companies held, and thus secured the basis
`of cutting-edge technology which was indispensible for the backend process strategy.
`Akita Elpida has had close relationship with Elpida since its establishment and it has basically
`operated its business integrally with Elpida.
`Against such backdrop, as a result of the historic appreciation of yen, the sharp decline in
`DRAM prices due to the intensification of competition in the DRAM industry, the sluggish
`demand for DRAM due to the severe flood in Thailand, etc., Elpida finally filed a petition for
`the commencement of corporate reorganization proceedings today. Akita Elpida has so far
`collected its claims for accounts receivable of approximately 700 million yen from our company
`every month. However, now that facing the situations that Elpida is set to rebuild our business
`under the Corporate Reorganization Act and the collection of the accounts receivable from our
`company has become difficult, and as a result of which the prospect of its future financing has
`become uncertain, Akita Elpida has decided to rebuild its business pursuant to the procedures
`under the Corporate Reorganization Act.
`
`

`
`N E W S R E L E A S E
`
`
`
`
`2. Total Amount of Liabilities (Balance sheet as of March 31, 2011)
`7,961 million yen
`
`3. Summary of the Said Subsidiary
`
`Akita Elpida Memory, Inc.
`89-2 Yamada, Yuwaishida, Akita-shi, Akita, Japan
`
`(1) Trade Name
`(2) Address of
`Headquarters
`(3) Date of Establishment July 21, 2006
`(4) Representative
`Hideki Gomi, Representative Director
`(5) Main Businesses
`Development, design, manufacturing, distribution and
`maintenance of electronic components such as semiconductor
`devices and integrated circuits
`310,000,000 yen
`6,202 Shares
`
`(8)
`
`100 %
`
`Stated Capital
`(6)
`(7) Total Number of
`Shares Issued
`Percentage held by
`Elpida
`(9) Executives
`
`
`
`
`
`
`
`
`
`
`(10) Number of
`Employees
`(11) Operating Results and Financial Status of the Last Three (3) Years (unconsolidated)
` （In Japanese Yen）
`Accounting Period
`Ended March 31,
`Ended March 31,
`Ended March 31,
`2009
`2010
`2011
`278,331 thousand
`145,659 thousand
`285,237 thousand
`13,309,673
`11,369,065
`8,246,761
`thousand
`thousand
`thousand
`13,431 million
`12,411 million
`11,002 million
`(205 million)
`44 million
`426 million
`(121 million)
`(132 million)
`139 million
`
`Hideki Gomi, Representative Director
`Takahiro Kobayashi, Director
`Shinji Kagaya, Director
`Yukio Sakamoto, Outside Director
`Yoshitaka Kinoshita, Outside Director
`Takayuki Mashiko, Outside Company Auditor
`415 (as of September 30, 2011)
`
`
`
`
`
`
`Net Assets
`Total Assets
`
`
`
`
`
`Net Sales
`Ordinary Profit
`Net Income of the
`Period
`
`

`
`N E W S R E L E A S E
`
`
`
`
`4．Claims Uncollectibility
`As a result of the filing by Akita Elpida of the petition for the commencement of corporate
`reorganization proceedings, now there is a possibility that the following claims of Elpida against
`Akita Elpida may not be collected.
`
`Types and Amount of the Claims against the Said Subsidiary (as of March 31, 2011)
`Loan receivable
`5,371 million yen
`Total
`5,371 million yen
`
`
`5. Future Prospect
`As we notified separately in the “Notice on Petition for Commencement of Corporate
`Reorganization Proceedings” dated today, since our company filed the petition for the
`commencement of the corporate reorganization proceedings with the Tokyo District Court on
`February 27, 2012, together with Akita Elpida, our company as a whole aims to rebuild our
`business with the selection of a sponsor and its assistance in view under the and supervision of
`the Tokyo District Court and Atsushi Toki, attorney-at-law, who is the Supervisor and Examiner,
`and will make our best and concerted efforts so that we can secure as much repayment funds as
`possible for the creditors.