OMRON Opens New R&D Facility in Shanghai, Capping Off Major Investment in Chinese Market - Collaborating with Universities to Make New Breakthroughs in Sensing & Control Technology -

FOR IMMEDIATE RELEASEJune 8, 2007

Tokyo, Japan - OMRON Corporation (TSE: 6645; ADR: OMRNY; 'OMRON'), a global leader in automation, sensing and control technology, today announced the opening of OMRON R&D Collaborative Innovation Center (Shanghai) in China, its first major R&D facility outside Japan. Located in Shanghai Zizhu Science-based Technology Park, the US$9.7 million facility will focus on further developing OMRON's core competencies in sensing and control technology.

"The Center will provide a space for true collaborative innovation between OMRON researchers and domestic institutions, who will work together to conceive and develop new applications of our sensing and control technology in the realms of safety, security, environmental preservation and health care," said Hisao Sakuta, president and CEO of OMRON Corporation.

As part of its long-term management plan, 'Grand Design 2010', OMRON has positioned 'business expansion in China' alongside 'sales growth in new business areas' as top priorities in order to achieve an intermediate goal of JPY 750 billion in consolidated sales and JPY 75 billion in operating profit for FY07.

Over the three-year period from FY04-06, OMRON has made a series of strategic investments, totaling almost JPY 30 billion (approx. US$ 250 million), in the Chinese market. Until now, these have focused on production and sales network expansion, and include the establishment of a global design and production center for industrial automation in Shanghai* and an automotive electronics production base in Guangzhou**, the expansion of an electronic components factory in Shenzhen*** and setting up a purchasing unit in Shanghai** to underpin the Company's new centralized procurement strategy. With the opening of this Collaborative Innovation Center, OMRON has now added world-class R&D facilities to its operations in China.

"The Center's opening today marks the successful completion of a three-year program of major capital commitment in China. We are now looking forward to reaping the returns on these investments in the final stage of our long-term plan (FY08-10), while continuing to explore new investment opportunities as we work towards our FY08 target of US$1.33 billion (approx. JPY 150 billion) for consolidated sales in China," said Sakuta.

The OMRON R&D Collaborative Innovation Center (Shanghai) will initially house the OMRON Institute of Sensing & Technology (Shanghai) Co., Ltd. ( 'ORS'), whose researchers are focusing on vision sensing, including facial recognition, and control technologies that equip machines with near-human levels of judgment. The Center will also welcome outside researchers and students working in related fields from Shanghai Jiaotong, Tsinghua, Xian Jiaotong, Zhejiang and other Chinese universities as part of OMRON's commitment to collaborative innovation. Initially, around 100 researchers will be engaged in research on approximately 30 different themes. The numbers of both personnel and research themes will double by FY09, and grow further as internal business divisions set up individual research units in the Center.

  1. * Completed FY06
  2. ** Completed FY05
  3. *** Completed FY07

Outline of the OMRON R&D Collaborative Innovation Center (Shanghai)

Name OMRON R&D Collaborative Innovation Center (Shanghai)
Area Land: 20,000m2; Building area: 5,000m2; Total floor space: 14,010 m2
Total investment US$ 9.7 million (including real estate, building, infrastructure)
Location Shanghai Zizhu Science-based Technology Park, Shanghai, China
Opening June 2007

Outline of OMRON Institute of Sensing & Technology (Shanghai) Co., Ltd. (ORS)

Company name OMRON Institute of Sensing & Control Technology (Shanghai) Co., Ltd.
Description of business R&D into advanced sensing and control technologies
Representatives
President
Satoshi Yano
Chairman of the Board
Koichi Imanaka
Managing Officer, OMRON Corp.
Senior General Manager, Research and Development H.Q.
Member of the Board
Toshio Yamashita
Executive Officer, OMRON Corp.
Chairman and President, OMRON (China) Co., Ltd. (China Resident Officer)
Member of the Board
Hisashi Shonaka
General Manager, Research and Development H.Q., Planning & Promotion Division.
Number of researchers Approx. 100 initially, rising to approx. 200 by the end of FY09
(including university-affiliated researchers etc.)
Capital Approx. US$ 1.4 million (wholly owned subsidiary of OMRON Corp.)
Established August 2005

OMRON R&D Collaborative Innovation Center

For media related enquiries, please contact:
James Seddon (james_seddon@omron.co.jp)
Sarah Hall (sarah_hall@omron.co.jp)
at OMRON Corporate Communications Department
Telephone: +81 3 3436 7202

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