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Notice of Dissolution of Subsidiary

FOR IMMEDIATE RELEASEOctober 30, 2007

TOKYO, Japan - OMRON Corporation (TOKYO: 6645; ADR: OMRNY; 'OMRON', 'the Company') has announced that resolutions fixing a ceiling for and clarifying the Company's future policy on treasury stock holdings were approved at a meeting of its Board of Directors held on October 30, 2007. Details are as follows.

  1. Treasury stock holdings will be limited to a maximum of 10% of total outstanding shares including treasury stock (249,121,372 shares as of September 30, 2007). Surplus treasury stock will be cancelled.
  2. Holdings of treasury stock will be used for future M&As and business expansion in line with the Company´s business strategy.

In accordance with its basic policy on distribution of profits outlined below, OMRON is committed to returning value to shareholders by systematically repurchasing Company stock. As of the end of September 2007, the Company currently holds 21,445,542 shares of its own stock (treasury stock), which represents approximately 8.6% of the total outstanding shares including this treasury stock.

"OMRON prioritizes dialogue and strives for transparency in our relationship with shareholders," said Hisao Sakuta, OMRON Corporation President & CEO. "In pursuit of heightened shareholder value, we will continue to repurchase Company stock. As our reserves of treasury stock grow, however, we feel it is important to clarify our policy on these holdings and how we intend to use them to strengthen the OMRON Group in the future."

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OMRON applies the following basic policy in regard to distribution of profits to shareholders.

  1. Internal capital resources will be secured for measures that maximize corporate value over the long term. These measures include investments in R&D and capital investments which are vital to future business expansion.
  2. After taking into consideration the required investments for future growth and the level of free cash flow, any surplus will be distributed to shareholders to the maximum extent possible.
  3. OMRON´s policy on dividends will be to enhance stable, uninterrupted profit distributions by taking into account consolidated results as well as indicators including dividends on equity (DOE) (return on equity (ROE) multiplied by the payout ratio), subject to the level of internal capital resources necessary in each fiscal year. Specifically, OMRON aims to maintain the payout ratio at a minimum of 20% and make profit distributions with a near-term DOE target of 2%.
  4. Utilizing retained earnings that have been accumulated over a long period of time, OMRON intends to systematically repurchase and retire the Company´s stock to benefit shareholders.

About OMRON

Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the field of automation. Established in 1933 and headed by President and CEO Hisao Sakuta, OMRON has more than 33,000 employees in over 32 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components, social systems (ticket gate machines, ticket vending machines and traffic control) and healthcare. For more infor mation, visit OMRON´s website at www.omron.com

Contact:
OMRON Corporation General Manager,Invenstor Department
Hiroshi Oishi
Telephone:+81 3 3436 7202

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