Kyocera Wireless Corp. Announces Manufacturing Shift to Sister Company Kyocera Mexicana

Business Wire, Jan 12, 2005

SAN DIEGO -- Company Also to Complete Move of Service and Repair to Authorized Service Centers Globally

Kyocera Wireless Corp. (KWC), a leading global manufacturer of CDMA wireless phones and telemetry devices, today outlined plans to shift the majority of its manufacturing operations from the company's San Diego headquarters to a Tijuana, Mexico facility operated by sister company Kyocera Mexicana, S.A. de C.V. (KMX). The transition, which will result in the elimination of approximately 450 manufacturing jobs in KWC's San Diego facility, will be completed during the final quarter of the company's fiscal year ending March 31, 2005.

"Wireless is among the most competitive of all consumer electronics segments, and in order to compete today, manufacturers must leverage all resources available to them globally," said James Kelly, newly appointed executive vice president and COO for Kyocera Wireless Corp. "Because manufacturing in La Jolla is cost-prohibitive, we're fortunate to have the manufacturing expertise and state-of-the-art facilities of our sister company KMX, located less than an hour away. Taking advantage of this opportunity is not only good for the company, it's also good for the San Diego/Tijuana region as we're maintaining over 1500 jobs north of the border, while supporting the growing economy south of the border with our manufacturing operations."

KWC also announced plans to complete the transition of service and repair to its global network of Authorized Service Centers located in the Americas, Australia, New Zealand and India. The move will result in the elimination of approximately 150 service and repair positions in KWC's San Diego facility. The company has been working to certify service and repair centers within each of its customer markets for more than a year and expects to have them fully operational by July 2005. The move toward localizing repair and service has been requested by Kyocera's carrier partners and is intended to expedite repair turnaround times and curtail shipping costs.

Confirming Kyocera Wireless Corp.'s current plan to remain in San Diego long-term, company President Tsuyoshi Mano said, "Our San Diego facility will remain the operating headquarters for Kyocera Wireless Corp. From here we will continue to oversee KWC's global sales and marketing, human resources, finance and other administrative functions, as well as research and development efforts, new product introduction, and the manufacture of first-generation handset programs."

Kyocera Group companies will employ approximately 4,000 people in the San Diego-Tijuana region after the reduction in force is completed, according to Rodney Lanthorne, president of Kyocera International, Inc., the Kyocera Group's North American headquarters and holding company.

"The combined actions by KWC will result in a more competitive cost structure and more effective customer service operations," Lanthorne stated. "KWC and San Diego will remain a hub for Kyocera's global operations in the mobile communications equipment arena."

About Kyocera

Kyocera Wireless Corp. is a leading supplier of innovative, feature-rich CDMA wireless devices and accessories for customers worldwide. The company maintains an operating belief in the genius of simplicity, and strives to make the wireless experience as simple and intuitive as humanly possible. It was established in San Diego after Kyocera's acquisition of QUALCOMM Incorporated's CDMA consumer wireless phone business in February 2000. Kyocera Wireless Corp. is ISO-14001 and ISO-9001 certified and has won city, state and federal awards for its environmentally friendly manufacturing and recycling practices. For more information, please visit www.kyocera-wireless.com.

Kyocera Mexicana, S.A. de C.V., currently with more than 1,700 employees, was founded in 1988 in Tijuana, Baja California, Mexico, as a supplier of assembly and manufacturing services within the Kyocera Group. The company currently focuses on supporting the manufacturing operations of Kyocera Wireless Corp., a producer of CDMA wireless phones; Kyocera America, Inc., a producer of ceramic packaging products for the microelectronics industry; and Kyocera Solar, Inc., a supplier of photovoltaic solar energy systems. All four companies are wholly-owned subsidiaries of Kyocera International, Inc. of San Diego, the North American headquarters and holding company for Kyoto, Japan-based Kyocera Corporation.

Kyocera Corporation, the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of advanced ceramics. By combining these engineered materials with metals and plastics, and integrating them with other technologies, Kyocera has become a leading supplier of telecommunications equipment, semiconductor packages, electronic components, laser printers, copiers, solar energy systems and industrial ceramics. During the year ended March 31, 2004, Kyocera Corporation's consolidated net sales totaled approximately US$11 billion (JP 1,140,814 million Yen) with net income of approximately US$655 million (JP 68,086 million Yen).