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For the protection of our beautiful earth: ACCRETECH strives to lead the way in environmental preservation

Recognizing it is as a critical issue facing all of mankind, ACCRETECH always considers environmental preservation in all manufacturing and service activities.

July 1996:Commences environmental protection activity program
September 1996:Creates Environmental Management Committee
February 1997:Begins environmental impact studies at Hachioji and Tsuchiura production facilities and divisions
May 1997:Formulates Environmental Management Manual
March 1998:Acquires ISO 14001 certification at both production facilities
April 2001:Renews ISO 14001 certification
March 2003:Establishes Green Procurement Guidelines

We strive to maintain a clear vision in raising employee awareness towards environmental preservation in all areas of operations, from production to services, to minimize impact on the earth. The Environmental Management Committee is the core body for implementing and promoting ACCRETECH's environmental preservation activities, ensuring strict compliance with applicable laws, regulations, agreements and the Company's internal policies. The following outlines are our chief goals, which are closely monitored through internal audits.

• Conserve energy and resources, reduce waste, promote recycling and effectively use natural resources.
• Promote the appropriate management of harmful substances to prevent pollution and reduce high-impact materials by switching to more eco-friendly items.
• Develop environmentally friendly products and improve existing products by conserving energy and resources, and eliminating the use of harmful materials.

We constantly try to heighten environmental awareness across the board through various training programs, while also encouraging environmental activities at our suppliers' factories.

ACCRETECH strives to employ eco-friendly components and develop products that have minimal effect on the environment. We practice environmental accounting and promote the effective use of natural resources. In November 2002, the Environmental Management Committee decided to implement the following initiatives.

• Practice “Green Procurement” of all products.
• Prohibit or reduce those harmful substances specified by the RoHS Directive (see below) by 2006.

These programs are currently being aggressively pursued.

This concept refers to the procurement of materials that have minimal environmental impact, from suppliers that possess an efficient environmental management system. Such suppliers must have attained ISO 14001 certification or execute environmental management based on this qualification. Materials must be eco-conscious in terms of substances used, energy and resource conservation, packaging and transportation. The Environmental Management Committee established the Green Procurement Guidelines to clearly delineate the Company's stance towards green procurement. We are adamant about using suppliers that meet requirements laid down in these guidelines. We also conducted a questionnaire to determine which specified chemical substances are contained in our suppliers' products. We will introduce a more detailed version of this questionnaire based on our own evaluation criteria to help create a database for use when we commence green procurement, scheduled for May 2004.

The materials that are to be prohibited or reduced in green procurement are decided by the Company based on questionnaire results. We have already begun investigation into six substances specified by the RoHS Directive, from technology and cost perspectives. The information will be used to create a chart that will aid us in the selection of suitable suppliers. We are currently striving to achieve the following.

• Eliminate lead. We will conduct test production of lead-free substrates within FY2004, evaluate in FY2005 and implement in FY2006.
• Eliminate hexavalent chromium. We are presently investigating into cost and the possibility of switching from components that contain chromate (represented in color on the chart) to other plating or materials.
• Eliminate cadmium, mercury, PBB and PBDE. We are continuing research into components that use these materials.

We plan to totally eliminate the use of these six substances by the middle of FY2006.

Previously, we evaluated products in terms of quality, cost and delivery. Environmental impact is now also used to determine the true value of products. In particular, we are working hard to incorporate eco-conscious design into our semiconductor manufacturing equipment, which is deemed to have a significant impact on the environment. By conducting lifecycle assessments, we aim to save energy (in both the device itself and its utilities), conserve resources (including pure water) and reduce harmful chemical substances, to ensure the continued existence of these products. ACCRETECH executes activities to realize green products, such as green procurement, for its entire lineup.

The RoHS (Restriction of the use of certain Hazardous Substances) directive will prohibit the use of six substances (mercury, cadmium, lead, hexavalent chromium, PBB and PBDE) in electrical and electronic equipment in EU nations after July 2006. The regulation extends to a wide range of products, including large and small electrical appliances, information technology and communications equipment, electronic devices for the consumer market, lighting equipment, motorized and electric tools, toys, sports and leisure goods, and vending machines. EU members are pushing for the relevant legislation to be passed by August 2004.

These restrictions will considerably affect components and materials makers, while precipitating the need for swift changes in development and design. For companies that import, manufacture or sell products in the EU, business survival lies in their ability to meet the demands of this and the Waste Electrical and Electronic Equipment (WEEE) directive.