Notice Concerning the Conversion of ELNA Co., Ltd. into a Wholly Owned Subsidiary of TAIYO YUDEN CO., LTD. through Share Exchange

TAIYO YUDEN CO., LTD. (hereafter "TAIYO YUDEN") and ELNA CO., LTD. (hereafter "ELNA"), in Board of Directors meetings held today in each company, have resolved to conduct a share exchange that will make TAIYO YUDEN the wholly-owning parent company in the share exchange and will make ELNA the wholly owned subsidiary in the share exchange (hereafter "the share exchange") with effective date January 1, 2019 (scheduled). TAIYO YUDEN and ELNA hereby provide notification that the two companies have entered into an agreement on the share exchange (hereafter “the share exchange agreement") on this date, with details as follows.

The share exchange is scheduled to be conducted by TAIYO YUDEN in accordance with the procedures for simplified share exchange based on the provisions of Article 796, Paragraph 2 of the Companies Act, without obtaining approval at a General Meeting of Shareholders; and to be conducted by ELNA with the approval of an Extraordinary General Meeting of Shareholders scheduled to be held on December 4, 2018.

Ahead of the effective date of the share exchange (scheduled for January 1, 2019), ordinary shares of ELNA are scheduled to be delisted from the Second Section of Tokyo Stock Exchange, Inc. (hereafter "the Tokyo Stock Exchange"), effective December 26, 2018 (with December 25, 2018 as the last day of trading).