OREANDA-NEWS. At Today's meeting of the Ricoh Board of Directors, the decision was made to spin off our direct sales business for optical equipment and electronic components. A detailed explanation of the reasons behind this move is as follows.

With the spinoff, the business for optical equipment and electronic components, which is being developed by Ricoh Company, Ltd., Ricoh Optical Industries Co., Ltd., and Ricoh Microelectronics Co., Ltd., will be transferred to a new wholly owned subsidiary to be established by October 2014.

Because this is a company split by which Ricoh's wholly owned subsidiary takes over a business unit, certain matters and content have been omitted from this disclosure.

In line with its 18th Mid-Term Management Plan for the three years started in April 2014, Ricoh will pursue group synergy by combining its comprehensive strengths to reinforce the industrial products business as a new business pillar to succeed the imaging & solutions business.

As part of this initiative, the spinoff of the direct sales business for optical equipment and electronic components, which has an environment and model different from Ricoh's core imaging & solutions business, will be implemented with the aim of establishing a system that enables us to promptly respond to customers' needs and changing markets, thereby expanding and reinforcing our business in automotive, factory automation, and other growth markets.