May 21, 2001 in Social Responsibility News

Participation in the rights offering of Towa Korea Co, Ltd.

- Participate in the rights offering of Towa Korea Co., Ltd. within the portion of SEC's equity ownership
- Number of shares: 245,000 shares(ration 40.0%->35.5%)
※ SEC's ratio fell through allocation of 17.5%(130,000 shares) of newly issued stocks
to employee stock ownership association

※Details of Korea Towa Co., Ltd. rights offering
- The supplier of Front equipment of semi-conductors, SEC predicts it will take 85% of the total sales in 2001
size: 3.7 billion(before:2billion won->after:5.7billion)
shares outstanding: 742,500 shares(5000won per share)

- to secure stable supply of front process equipment to produce quality semi-conductor wafer
Portion of Towa's Front equipment in SEC's purchase predicted to reach 10% of total purchase of SEC in 2001
- issued price is lower than evaluated price, therefore capital gain expected
Samil Accounting corporation evaluated each shares at 26,080 won(as of March 31, 2001)
- unanimous approval

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