FEC Restructures Global Sales and Marketing Network

January 13, 2004

Furukawa Electric Co., Ltd. (FEC) has restructured its international sales and marketing network to improve customer service and upgrade its global marketing support and effectiveness.

The new system has established a global sales organization with five business centers - a Global Control Center in Tokyo, Japan, plus four regional centers responsible for the Americas; Europe/Middle East/Africa, Asia-Pacific, and China. Future plans call for the business centers to be developed into regional headquarters (RHQs) that integrate additional activities, such as international procurement and other services, to support more than 60 overseas manufacturing facilities. The new system will improve support for both regional and multinational customers as FEC moves toward the goal of doubling its oversea sales ratio during the next three years.

Five Business Center System

Considering the continued globalization of both customers and markets, FEC recognizes the importance of establishing sales centers that operate both locally and internationally. FEC has assigned four companies, located in the United States, United Kingdom, Singapore, and the Peoples Republic of China, to be regional sales headquarters with enhanced responsibilities and functions. Some sales and marketing activities currently headquartered Japan are expected to shift to the four regional centers. These changes are expected to enhance the "FURUKAWA" brand name around the world while improving global marketing coordination.

Americas

FEC established a new sales company, Furukawa America, Inc. (FAI) during 2003. FAI was created through the consolidation of three existing Furukawa companies: Fitel Technologies Inc., Fitel Interconnectivity Corporation, and Computer Memory Disk Corporation. FAI sells a full line of Furukawa brand products while serving customers in a variety of markets including IT/Electronics, Communications/Fiber Optics, and Specialty Products. FAI is headquartered in Peachtree City, Georgia with regional offices in Santa Clara, California, and Clinton, New Jersey.

Europe/Middle East/Africa

Furukawa Electric Europe, Ltd. (FEEL), headquartered in London, England, has been designated as a regional HQ with responsibility for sales, service, and support in the region. In 2003, FEEL established a new sales office in Augsburg, Germany, to better support customers on the continent. FEEL plans to continue to enhance its sales network to better serve the whole European market.

China Region

In 2003, FEC established Furukawa Shanghai, Ltd. (FSL), in Shanghai, PR China, as a new sales company designated as the regional sales headquarters for the China region. Together with existing sales companies Furukawa Electric Hong Kong Ltd. (FEHK) and Taiwan Furukawa Electric Co., Ltd. (TFE), FSL will serve customers in the "Greater China" market.

Asian-Pacific

FEC's well-established sales company Furukawa Electric Singapore Pte Ltd. (FES) has been designated as the regional sales center for South-East Asia (including India).

Japan

FEC's International Sales and Marketing Group, headquartered in Tokyo, Japan, serves as the Global Control Center of the four regional sales centers. The International Sales and Marketing Group coordinates FEC's global sales and marketing activities while supporting each regional program.

Plans call for further development of the four regional sales centers into regional headquarters by enhancing non-sales operations such as international procurement and support for more than 60 overseas manufacturing facilities. FEC's strategic goal is to create an improved global network that better integrates purchasing, manufacturing, sales, and services. As part of this global expansion, FEC is building a global information system network. The four regional HQs are expected to be the international "hubs" of the new global information network.

About integration of OFS Asia-Pacific Sales Group

FEC has integrated the sales and marketing activities of OFS - Asia-Pacific and China into the FEC International Sales & Marketing Group serving these regions. In China, which FEC recognizes as the most promising market in the world, FEC has integrated the OFS personnel located in Beijing, into a new Beijing representative office of Furukawa Shanghai, Ltd. Among other activities, the Beijing office will focus on expanding the sale of fiber optic products in China.