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Oki to Adopt Chrome-Free Surface-Treated Steel Sheet for ATMs and IP and Optical Communications Equipment

Oki Electric Industry Co., Ltd. today announced that it will adopt chromium-free surface-treated steel sheet for its major products including ATMs (automated teller machines) and communications equipment beginning in December 2002. From the fiscal year ending March 31, 2002, the company decided to switch from using plated steel sheet containing chromic acid chemicals to chromium-free steel sheet for use in all its products sold in Japan, and will complete the conversion by the end of March 2003

Tokyo, Japan, November 27, 2002 -- Oki Electric Industry Co., Ltd. (TSE: 6703) today announced that it will adopt chromium-free surface-treated steel sheet for its major products including ATMs (automated teller machines) and communications equipment beginning in December 2002. From the fiscal year ending March 31, 2002, the company decided to switch from using plated steel sheet containing chromic acid chemicals to chromium-free steel sheet for use in all its products sold in Japan, and will complete the conversion by the end of March 2003.

"The Oki group is highly committed to being a leader in the electronics industry in protecting and strengthening the environment as a core management policy. By closely working with our business partners, Oki would like to procure plated steel sheets with less environment-impact, meeting our high-level environmental protection standard," said Masayoshi Ino, Executive Vice President at Oki Electric, responsible for Oki groupfs environmental protection strategies.

As part of its "Oki Eco Plan 21" set forth in 2001, the Oki group set one of the activity themes as the control and reduction in the use of materials and components that pose a threat to the environment from its manufacturing processes and products. Surface of plated steel sheet includes chromic acid chemicals for preventing rust. These chemicals have been shown to be environmentally hazardous, and as a result, Oki has been working to select appropriate chromium-free surfaced-treated steel sheet. The steel that Oki has selected prevents rust equally as well, requires little change in the manufacturing process, and has a reasonable cost relative to the conventional steel sheet.

Oki evaluated the chromium-free processed steel sheets from six different companies. These were then used in 18 different items to test for product quality and manufacturing processes such as corrosion-resistance, weldability, and adhesiveness of paint, as well as price and ease of overseas procurement for production shift to China. Of the six companies tested, two had products that passed Oki's quality standard that would enable the company to maintain its own products' quality and require no changes in manufacturing processes.

The company now uses about 450 tons of plating steel sheet per year for products manufactured in Japan. By switching to chromium-free steel sheet, a 1.5-kilogram reduction of chromic acid chemicals is expected. Oki also plans to expand the utilization of chromium-free processed steel sheets for products manufactured outside of Japan, and will complete the switch by the end of March 2004. The Oki group uses about 800 tons of plating steel sheet per year for overseas production and it expects a 2.7-kilogram reduction of chromic acid chemicals.

As the next step, Oki intends to introduce a wash-free process that will reduce the wash out oil used during machine process.



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About Oki Electric Industry Co., Ltd.
Founded more than a century ago in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer, headquartered in Tokyo, Japan. Oki Electric provides customers with top-quality products, technologies and solutions for telecommunications systems, information systems and electronic devices through its corporate vision, "Oki, Network Solutions for a Global Society." Visit Oki's global web site at http://www.oki.com/.

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Keiko Miyaji
Oki Electric Industry Co., Ltd.
+81-3-3580-8950
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