As a manufacturer of precision abrasives essential to the manufacture of semiconductors and other high-tech finished products, Fujimi has provided superior-quality abrasives to manufacturers worldwide. Operating in a niche market that offers outstanding growth potential, Fujimi has consistently maintained its leading market share and its position as a global player. Fujimi's production technologies and expertise have given it a monthly capacity of several thousand tons of submicron-size abrasives. The Company's superior capabilities, plus the niche-oriented nature of the abrasives market itself, make it difficult for other competitors to break in . Fujimi thus enjoys a leading share of the global market. The Company's proven track record, together with its commitment to responding to increasingly diverse and sophisticated user needs, have earned it the trust of customers, who feel comfortable about seeking its assistance with R&D aimed at developing next-generation products. Another strength is Fujimi's worldwide information-gathering network, which enables the Company to provide advice to customers in a timely manner.

Recognizing the demand for our products throughout the world, Fujimi began exporting in 1966. Our products first reached the North American market in 1976. Fujimi Corporation, our U.S. sales company, was established in 1984. To meet growing demand from the American semiconductor industry, we created Fujimi America Inc. Today, our four Oregon plants located on two sites produce a large volume of products both for the North American market and for export globally. Thanks to strategic inventories

and today's advanced transportation networks, our U.S. production facilities can serve our customers in Europe and the Pacific Rim as promptly as our domestic customers.

Although Fujimi began as a manufacturer of abrasives for optical lenses, in the intervening years it has emphasized the development of the ultraprecision abrasives technologies necessary to meet the needs of manufacturers in the electronics industry and has rapidly converted these technologies into innovative abrasive products for electronic applications well in advance of its competitors. This approach has enabled Fujimi, as an abrasives specialist, to keep abreast of market needs, from the earliest days of germanium wafers (the predecessor of the silicon wafer) to the current frontier of electronics technology: submicron and multilayer semiconductor technologies and increasingly high-density computer hard disks.

The world of abrasives is one of submicron particles and molecular-level technologies. New applications demand abrasives incorporating innovative raw materials. Because developing such materials can involve processes that are not yet widely understood technically or theoretically, a vast store of expertise gained from long-term involvement in product development is essential to success. Fujimi's singular focus on abrasives has enabled it to accumulate such a store of expertise, reflected in the fact that the Company holds approximately 180 proprietary rights (including registered trademarks)around the world. The final stage of silicon wafer polishing, for example, requires a flat and uniform surface that will not disturb the silicon's crystal structure. At one time, it was generally assumed that neither natural nor conventional synthetic abrasives could deliver satisfactory results. Fujimi first rose to this challenge by defining what would constitute the perfect polishing compound for this sensitive task and subsequently succeeded in synthesizing products that are now accepted by silicon wafer manufacturers worldwide.

Fujimi's abrasives are not limited to those for silicon wafers, but include a host of products for processing plastic ophthalmic and optical lenses, metals, and gemstones, as well as for use with precision grinding stones and wheels. Quality assurance is at the heart of the Fujimi effort, which we achieve through tightly defined procedures and constant employee training. The Fujimi Quality Policy states: "As a pioneer in the manufacturing of ultra fine, precision graded abrasives and other ceramic particles, the employees of Fujimi Corporation are dedicated to providing the highest quality products and services that meet or exceed customer requirements, and to aggressively strive to be the quality leader in the industry."

Testing for products may include scratch tests, JIS 46002, particle distribution, chemical composition and specific gravity. In 1994, Fujimi America Inc. became ISO 9002 registered. We are a certified vendor to the leading names in the semiconductor and disk industries. We are proud to be a global leader in this area.