June 3, 2010
Sumitomo Electric Industries, Ltd.

Sumitomo Electric Industries, Ltd. has agreed with Nanjing Putian Telecommunications Co., Ltd. (located in Nanjin, Jiangsu Province, chaired by Zhao Xin Ping, hereinafter Nanjing Putian) to establish a joint venture of optical networking equipments for FTTx targeting at the Chinese market. Nanjing Putian enjoys the majority of shares in the Chinese telecommunication distribution.

Recently, China has rushed to build the information infrastructure to meet an increase in the number of broadband subscribers and also to host the Expo in Shanghai and other big events. It is projected that the FTTx market will expand rapidly in and after 2011.

Thus far Sumitomo Electric has planned to enhance its optical networking equipments business in the fast-growing Chinese market. The company has formed a business partnership with Nanjing Putian, which dominates the telecommunication distribution equipments market in China. The two companies aim to establish a joint venture company of optical networking equipments for FTTx targeting at the Chinese market. Drawing upon Sumitomo Electric’s excellent expertise and know-how in the Japanese FTTx optical networking equipment and Nanjing Putian’s wide sales networks among domestic telecommunications carriers, the new company plans to seize the top share in the FTTx optical networking equipments as a leader of the industry.

Profile of New Company

Company name	SEI-Nanjing Putian Optical Network Co., Ltd
Location	Nanjin City, Jiangsu Province, China
Investment ratio	Sumitomo Electric 50％, Nanjing Putian 50％
Business	Manufacture and sales of optical networking equipments (optical splitters, field assembly connectors, branch modules, etc.)
Establishment	June 2010
Start of business	August 2010

*1 Fiber-to-the-x (FTTx) is a general term for optical telecommunication services that directly connect telecommunications companies and homes, multiple dwelling units and other buildings.

【Additional information】

Profile of Nanjing Putian

Company name	Nanjing Putian Telecommunications Co., Ltd.
Location	Nanjin, Jiangsu Province, China
Chairman of the Board	Zhao Xin Ping
Capital	215 million yuan (about 2.8 billion yen)
Investment ratio	China Potevio Co., Ltd. 53％, general shareholders 47％
Business	Manufacture and sales of telecommunication wires, integrated access cables and videophone-related products
Establishment	1997
Employees	About 1300
Annual sales	1175 million yuan (about 15.5 billion yen) (in 2008)