Violation of Enforcement Order under the Industrial Safety and Health Law due to Use of Talc Containing Asbestos, and Completion of Change to Non-Asbestos Talc

As a result of an investigation conducted by the Labor Standards Bureau of Japan on September 13, 2006, it was found that talc used as an additive to raw materials was contaminated with asbestos in an amount exceeding the maximum proportion of 0.1% provided under regulations. The Labor Standards Bureau issued a guidance to prohibit the use of such talc due to violation of the Enforcement Order under the Industrial Safety and Health Law which became effective as from September 1, 2006.

The Company accordingly ceased to use such talc with immediate effect on September 13, 2006 and has completed a change to non-asbestos talc.

Kyocera takes the guidance with utmost seriousness and will use its best efforts to prevent any future recurrence of such violation. The Company apologizes sincerely to all for the trouble caused by this violation.

The fine ceramic products of the Company are sintered in high temperatures in the manufacturing process, and asbestos fibers lose their crystallization water and cannot remain as asbestos. Accordingly, the fine ceramic products do not have any asbestos or any adverse impact on the environment or on human health.