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Nichia and Citizen enter white LED manufacturing alliance

Tokyo, Japan. Nichia Corporation and Citizen Electronics Co., Ltd. announced today their entrance into an alliance for the packaging and sale of white LEDs. Pursuant to executed agreements between the two companies, Citizen Electronics will purchase production quantities of Nichia indium gallium nitride (InGaN) die for the manufacture of packaged white LEDs. The packaging and sale of white LEDs by Citizen Electronics will be licensed under Nichia s white LED patent portfolio.

"The sale of unpackaged die and the licensing of Nichia technology are both a first for Nichia, so this alliance was not something we rushed into," said Noboru Tazaki, Managing Director and General Manager of Nichia s Optoelectronics Products Division. "In Citizen Electronics we found a partner that could take Nichia s technology to a broader market in a high quality package, and that made the difference."

Nichia developed the white LED in the mid-1990 s by combining its high quality phosphor with its recently commercialized InGaN blue LED. Nichia found that when blue light from an InGaN die passes through a thin phosphor coating, a portion of the blue light is down-converted to yellow light. This yellow light mixes with the remaining blue light from the InGaN die to create bright white light. Subtle variations in the phosphor coating vary the tint of the white light from a bluish-white to a yellowish-white, making the packaging step critical for consistency in the color characteristics and quality of the finished white LED.

>From its vast assembly experience over years of putting together watch movements, Citizen Electronics core competency is the automated assembly and miniaturization of high-technology components. It is their skill in this area that has led Citizen Electronics to become the world s largest producer of surface-mount LEDs. Citizen Electronics packaged LEDs (sold under the tradename CITILED) are used to improve reliability and reduce assembly costs in the manufacture of cellular telephones, back-lighting devices, indoor/outdoor displays, and car electronics. Citizen Electronics is particularly strong in the cellular and cordless telephone market.

"We are very excited to work with Nichia," said Tsuneo Miura, Director and Chief General Manager of Citizen Electronics Electronic Parts Production Divisions I and II. "The combination of Nichia s patented white LED technology and Citizen Electronics packaging expertise will expand the growth of the LED market, both in existing and new product applications."

About Nichia Nichia was established in Japan in 1956 to manufacture calcium phosphate used in the production of fluorescent lamp phosphors. Since that time, Nichia has grown in the field of manufacturing and sales of fine chemicals, particularly inorganic luminescent materials (phosphors), high brightness LEDs, and, recently, laser diodes. Nichia is recognized as the world leader in InGaN LED and laser diode technology. Nichia has been issued over 20 patents in eight countries for its white LED technology. Nichia was formerly known as Nichia Chemical Industry Company, Limited. Nichia has operations throughout the world, including Nichia America Corporation, a U.S. subsidiary based in Mountville, Pennsylvania. Please visit www.nichia.co.jp for more information.

About Citizen Electronics Established in 1970 as a manufacturer of watch movements, Citizen Electronics has capitalized on the precision assembly expertise and micro-processing skills gained in its production of watch components to develop a unique range of products outside the watch market. Surface-mount LEDs, for which Citizen Electronics commands the world s largest production share, are but one example. Thanks to Citizen Electronics growing global network of manufacturing and sales bases, the performance and quality of Citizen Electronics products are now widely recognized in both its home base of Japan and throughout the world. Please visit www.c-e.co.jp for more information. Matthew Quint
Quint Public Relations (for Nichia)
Tel. +1 650-599-9450
E-mail: mquint@quintpr.com
Web site: http://www.c-e.co.jp

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