Funai Acquiring Lexmark's Inkjet-related Technology and Assets

LEXINGTON, KY—April 1, 2013—Funai Electric Co. has signed an agreement to acquire Lexmark International's inkjet-related technology and assets for approximately $100 million (approximately JPY 9.5 billion).

Upon closing of the transaction, Funai will acquire more than 1,500 inkjet patents, Lexmark's inkjet-related research and development assets and tools, all outstanding shares and the manufacturing facility of Lexmark International (Philippines), and other inkjet-related technologies and assets. Through this transaction, Funai will acquire the capabilities to develop, manufacture and sell inkjet hardware, as well as inkjet supplies. The transaction is subject to customary closing conditions and is expected to close within the first half of 2013.

As an OEM manufacturer, Funai has manufactured inkjet hardware for Lexmark since 1997 and the companies have established a strong relationship over that time.

The acquisition of the inkjet-related technology and assets will enable Funai to launch new inkjet hardware and supplies under Funai's own brands. Funai has established a strategy to develop and grow its inkjet printer business by introducing Funai's own inkjet printers and supplies into the market. With the inkjet patents, state-of-the-art manufacturing facilities and comprehensive R&D capabilities, Funai will be able to accelerate the expansion of its inkjet business.

For Lexmark customers and distributors, there will not be a disruption of service or support as they continue to work directly with Lexmark. Funai will become a manufacturer of Lexmark's aftermarket inkjet supplies. Lexmark will continue to support its installed base of customers in the sale of aftermarket inkjet supplies and will continue to provide customer technical and warranty support.

Goldman, Sachs & Company acted as the exclusive financial advisor to Lexmark on this transaction.

"This transaction provides us with a crucial and tremendous opportunity to enhance our office solution business," said Funai president and CEO, Tomonori Hayashi. "Funai and Lexmark have developed a great partnership, and we are glad to take over Lexmark's inkjet-related technology and assets. The acquisition of the inkjet-related technology and assets enables Funai to start and grow our own inkjet business. Funai will benefit from the strong inkjet business platform that Lexmark has established."

Paul Rooke, Lexmark's chairman and CEO, also added that as the company continues its transition to becoming a leading end-to-end solutions provider, this transaction will complete its exit from the ownership of inkjet-related assets, but Lexmark will continue to support its existing customer base with the sale of inkjet supplies. "Funai has been a trusted partner of Lexmark since 1997, and I am fully confident in Funai's ability to deliver high-quality inkjet supplies for Lexmark."

About Funai Electric Co.
Funai Electric Company (TSE/OSE 6839), established in 1961, is headquartered in Osaka, Japan and is listed in the Tokyo and Osaka Securities Exchange First Section (6839). In addition to the consumer electronic product brands sold by FUNAI Corp. in the USA and the products sold by other FUNAI sales and marketing companies in Japan, Asia, Europe, and South America, Funai Electric Co. is a major original equipment manufacturer (OEM) supplier for consumer electronics, computer and computer peripheral companies on a global basis.

About Lexmark International
Lexmark International (NYSE: LXK) provides businesses of all sizes with a broad range of printing and imaging products, software, solutions and services that help customers to print less and save more. Perceptive Software, a Lexmark company, is a leading provider of process, intelligent capture and content management software that helps organizations fuel greater operational efficiency. In 2012, Lexmark sold products in more than 170 countries and reported $3.8 billion in revenue.



Source: Lexmark.