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On the Arrest of Company Employees

February 23, 2007

Today, three employees of the company were arrested on the charge of violating the Japanese Foreign Exchange and Foreign Trade Law by the joint task force of the Shizuoka and the Fukuoka Prefectural Police concerning the export of unmanned helicopters to China.

The company takes this situation very seriously, and would like to offer its sincere apologies for the concern and the inconvenience caused to its customers, business acquaintances, shareholders, and other concerned parties.

Ever since the company was subject to the criminal investigation that took place in January last year, the company has cooperated fully with the investigation through making employees available to authorities for questioning, as well as ensured that all possible measures were taken to avoid any obstruction of the investigative proceedings.

As we have yet to gain full knowledge of the details concerning the arrest of the employees, it is difficult at this time to issue comments on the specifics of the arrest. However, given this development, the company takes this situation very seriously, and believes there is no other course of action other than to watch closely over the development of the investigation.

Furthermore, the company is determined to work intensively with all its employees in unison to regain public trust. The company would like to once again offer its sincere apology for the concern and the inconvenience caused by this matter.

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