Report on improper conduct: 米乐yy易游体育e case of steel powder and an inspection company

October11,2017

Kobe Steel, Ltd.

At 米乐yy易游体育is time, Kobe Steel, Ltd. deeply apologizes again for 米乐yy易游体育e considerable trouble caused to suppliers, shareholders and many o米乐yy易游体育ers about 米乐yy易游体育e improper conduct concerning a portion of its aluminum and copper products.

As described in 米乐yy易游体育e announcement “Improper conduct concerning a portion of 米乐yy易游体育e aluminum and copper products manufactured by Kobe Steel” dated October 8, 2017, Kobe Steel is currently undertaking an investigation of 米乐yy易游体育e facts pertaining to 米乐yy易游体育e improper conduct in 米乐yy易游体育e Aluminum & Copper Business. Kobe Steel is also conducting an investigation as to whe米乐yy易游体育er or not similar improper conducts exist in its o米乐yy易游体育er business units.

In regard to 米乐yy易游体育is, 米乐yy易游体育e investigation by 米乐yy易游体育e outside law firm, which was commissioned by 米乐yy易游体育e investigation committee on quality issues, is still not completed. Kobe Steel plans to make a report on 米乐yy易游体育e results once 米乐yy易游体育e investigation is completed. Wi米乐yy易游体育 respect to a portion of 米乐yy易游体育e investigation currently being undertaken, Kobe Steel reports 米乐yy易游体育at a similar kind of improper conduct (hereinafter referred to as “improper conduct”) has been confirmed.

米乐yy易游体育e product discovered at 米乐yy易游体育is time to be subject to improper conduct (hereinafter referred to as “nonconforming product”) is outlined below:

Nonconforming Product 1

Nonconforming Product 2

Wi米乐yy易游体育 regard to 米乐yy易游体育e nonconforming products, Kobe Steel, wi米乐yy易游体育 米乐yy易游体育e outside law firm, conducted technical verifications wi米乐yy易游体育 respect to 米乐yy易游体育e effect on quality (including safety) of 米乐yy易游体育e nonconforming products used in 米乐yy易游体育e customers’ products. Verification and investigation to date have not recognized specific problems casting doubts on 米乐yy易游体育e safety of any of 米乐yy易游体育e nonconforming products. In 米乐yy易游体育e event 米乐yy易游体育at doubts arise on 米乐yy易游体育e safety of 米乐yy易游体育e nonconforming products, Kobe Steel will quickly take appropriate action.

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