(This document is an English translation of the original Japanese document. If there are any discrepancies between this document and the original Japanese document, the original Japanese document prevails.)
November 2, 2015
To whom it may concern
As outlined below, arbitration proceedings have been confirmed to be complete for a case involving accounts receivable held by OKI subsidiary Oki Banking Systems (Shenzhen) Co., Ltd., against Shenzhen Yihua Computer Industrial Co. Ltd., the sales partner in China of Oki Banking Systems' ATM products.
South China International Economic and Trade Arbitration Commission (SCIA)
November 2, 2015
Since December 2012, Oki Banking Systems(Shenzhen) Co., Ltd. ("OBSZ" hereinafter) has sold ATMs in China through Shenzhen Yihua Computer Industrial Co. Ltd. ("Yihua Industrial" hereinafter) pursuant to an ATM sales contract concluded between the two parties. However, without justifiable cause, Yihua Industrial has failed to pay to OBSZ due proceeds from sales of OBSZ products. OBSZ in response has suspended sales of products to Yihua Industrial and made repeated attempts to reach a compromise resolution through ongoing discussions in which OBSZ has requested prompt fulfillment of contractual obligations. Due to failure to reach an agreement, OBSZ filed for arbitration with SCIA, demanding payment by Yihua Industrial of uncollected proceeds from sales of the corresponding products. It was confirmed today that these proceedings have been completed.
OKI and OBSZ will continue to claim their proper rights pursuant to the contract. At the same time, we will continue to pursue the possibility of a compromise resolution. We are currently in the process of carefully reviewing the impact of these arbitration proceedings on our business performance and related matters. Any matters worthy of disclosure will be promptly announced as they arise.