Tokyo, Japan – OMRON Corporation (TSE: 6645; ADR: OMRNY; ‘OMRON’), a global leader in automation, sensing and control technology, announced that it has reached a preliminary agreement to acquire the semiconductor business assets of Seiko Epson's consolidated subsidiary, Yasu Semiconductor Corporation.

OMRON develops, manufactures, and markets custom ICs that offer functionality and cost-performance not found in general-purpose semiconductors, as well as MEMS (Micro Electro Mechanical Systems) products such as flow sensors and pressure sensors that utilize semiconductor processes in their manufacture. OMRON's semiconductor-related sales for fiscal 2005 were 6.6 billion yen. The acquisition of the business assets resulting from this preliminary agreement is aimed at further reinforcing these semiconductor operations, while strengthening the OMRON Group's line of semiconductor-equipped products.

The parties will now enter into detailed discussions, aiming to conclude the final contract and complete the acquisition by March 2007.

OMRON Announces Preliminary Agreement to Acquire Semiconductor Business Assets from Seiko Epson Subsidiary