SOURCE: TDK Corporation

March 15, 2007 08:10 ET

TDK Corporation announces Basic Agreement with Alps

Tokyo, Japan -- (MARKET WIRE) -- March 15, 2007 --

For Immediate Release

Contact in TDK:

Nobuyuki Koike

TDK Corporation

Corporate Communications Dept.

Tel: (81)-3-5201-7102


      Basic Agreement with Alps on Acquisition of HDD head related Assets

TOKYO, JAPAN, March 15, 2007,--TDK Corporation (TDK) announced today that it has
concluded a basic agreement (Memorandum of Understanding) with Alps Electric Co.
Ltd. (Alps) regarding an acquisition from Alps of its equipment and intellectual
property rights such as patent properties and know-how concerning HDD (Hard Disc
Drive) head business, and has commenced negotiations with Alps to conclude a
definitive contract.

TDK aims at concluding and executing the definitive contract with Alps as soon
as practicably possible.

Through the acquisition of Alps' technology and know-how, the proposed
definitive contract will enhance TDK's ability to compete by improving the
efficiency of its operations and enabling TDK to offer enhanced technologies.

Furthermore, TDK will make timely report on the schedule and contents of this
transaction along with the financial effect of acquisition as soon as the both
parties reach certain milestones during the ongoing discussion.

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About TDK Corporation

TDK Corporation (NYSE: TDK) is a leading global electronics company based in
Japan. It was established in 1935 to commercialize "ferrite," a key material in
electronics and magnetics. TDK's current product line includes ferrite
materials, electronic components, wireless computer networking products,
magnetic heads for HDD, and advanced digital recording media. Net sales in FY
March 2006 were ca. US $6.8 billion. For more information about TDK, please

About  Alps Electric Co., Ltd.

Alps Electric Co., Ltd. (TYO: 6770), a Japanese corporation, is one of the
world's leading companies engaged in manufacture and sale of electric and
electronic components and parts. Alps has manufactured various electronic
components since its foundation in 1948. Based on innovative proprietary
technology and market outlook, Alps provides cutting-edge electronic components
that contribute to the advancement of a multimedia society in the five business
fields, Mechatronic Devices, Automotive Electronics, Communications, Peripheral
Products and Magnetic Devices. Net sales in FY March 2006 were ca. US $6
billion. For more information, visit

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