ITX Corporation (“ITX”) announced that the functional integration in the electronics and solutions field inside the ITX Group, a supplementary initiative to further promote the “Corporate Structural Reform” announced on December 16, was resolved at the meeting of its Board of Directors held on December 24, 2008. The details are provided below.

ITX has put forward “strengthening earnings by focusing resources” as one of its objectives of corporate structural reform announced on December 16. ITX aims to boost the corporate value of the ITX Group by strengthening its earnings structure. In order to do this, ITX shall integrate ITX Group functions that extend beyond their respective frameworks and then accelerate business development speed while improving cost efficiency.
As a supplementary initiative towards this objective, ITX, aiming to integrate the functions currently being developed in the electronics and solutions field inside the ITX Group, shall execute a stock swap involving the exchange of stock between E-Globaledge Corporation (“E-Globaledge”) and Soliste Corporation (“Soliste”), which are presently developing their businesses in the same field inside the ITX Group. Through this stock swap, Soliste will become a wholly-owned subsidiary of E-Globaledge.
Accompanying the stock swap, ITX will review the existing businesses of both companies. ITX aims to execute a selection and focus of businesses into the two function categories of (1) trading company functions and (2) maker and solutions functions to focus resources and raise the efficiency of the electronics and solutions field inside the ITX Group.
The electronics and solutions field is an important field of the information communication services business, the backbone business of ITX Group and, as companies charged with the core business role in the electronics and solutions field inside the ITX Group, E-Globaledge and Soliste will continue to develop their businesses into the future and contribute to boosting the corporate value of the ITX Group.
ITX, also, shall contribute to boosting the corporate value of the ITX Group by proactively executing efforts to focus, and raise the efficiency of, group businesses connected with boosting the value of its backbone business, the information communication services business.

1. Overview of the new functional integration

A stock swap shall be executed between E-Globaledge and Soliste, and E-Globaledge shall make Soliste a wholly-owned subsidiary.
Accompanying the stock swap, ITX will review the existing businesses of both companies. ITX aims to execute a selection and focus of businesses into the two function categories of (1) trading company functions and (2) maker and solutions functions, to focus resources and raise the efficiency of the electronics and solutions field inside the ITX Group.

2. Background to the new functional integration

Due to the stalling of the global economy that has stemmed from the subprime mortgage crisis, there have been reductions or freezes on corporate capital investment, deteriorating corporate earnings and other factors making the economic environment very tough. Against the backdrop of this tough economic environment, E-Globaledge and Soliste, who operate in the electronics and solutions field and whose respective principal functions are both trading company functions, have been executing measures to strengthen their respective maker and solutions functions. Under these circumstances, in order to realize “strengthening earnings by focusing resources,” an objective of ITX’s “Corporate Structural Reform,” ITX will conduct a review of both companies’ existing businesses, and then, while both companies work to strengthen their maker and solutions functions, the functions that both companies hold will be integrated so that the business base can be strengthened and greater management efficiency can be achieved through integrated management between the two companies.

3. Purposes and future strategies of the new functional integration

4. Effect of new functional integration

The synergy effect from this integration is estimated at ¥0.3 billion.