R&D Expenditure

( in millions of JPY )

	FY2008	FY2007	FY2006
Overall	472	495	452

R&D Structure
-Each department's technical group works in cooperation with the R&D division, which is in charge of development for the entire group.

-The main areas of R&D are research on vehicle rear view systems and development of highly functional fine glass.

-The total number of R&D staff is 37, which includes the R&D division at the headquarters and technical groups at each department.


R&D Activities
1. Automotive rear-view recognition system
-Camera units to eliminate blind spots
-Development of a new mechanized mirror
-Development of weight saving and standardized structures
-Development of products for hydrophilic film
-Development of safety mirrors

2. High function fine glass
-Development of various optical filters and a high-reflective mirrors
-Development of high-precision curved surface mirrors
-Development of light-adjusting filters (mirrors)
-Development of ECD production method


Licensing of Technology to Other Companies (as of Mar. 2009)

Partner	Contract	Contract Period
Ken Sean Factory Co., Ltd. (Taiwan)	To supply design and manufacturing technology on Automotive Rear-view Mirrors to automakers in Taiwan (except Ford Lio Ho Motor) including Japanese automakers	2009.02.01- 2010.01.31*
Ampas Industries Co., Ltd. (Thailand)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	2008.12.29- 2009.12.28*
Delloyd Industries (M) Sdn. Bhd. (Malaysia)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	2008.12.05- 2009.12.04*
Fu-Hwa Glass Co., Ltd. (Taiwan)	To supply design and manufacturing technology on Automotive Rear-view Mirrors to automakers in Taiwan (except Kuozui Motors) including Japanese automakers	2009.04.01- 2010.03.31*
Tata Ficosa Automotive Systems, Ltd. (India)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	From Sep. 1, 2004 to the completion of delivery of the products subject to the contract
Ficosa do Brasil , Ltda. (Brazil)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	2004.09.01- 2009.08.31
Ficosa International S.A. (Spain)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	2008.06.30- 2009.06.29*
Murakami Ampas (Thailand) Co., Ltd. (Thailand)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	2008.07.01- 2009.06.30*
Murakami Manufacturing U.S.A. Inc. (USA)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	2009.01.01- 2009.12.31*
Murakami Manufacturing (Thailand) Co., Ltd. (Thailand)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	2008.06.30- 2009.06.29*
Jiazing Murakami Ishizaki Corporation (China)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	2008.08.01- 2009.07.31*

* Contracts are renewed every year if both parties agree.

Investment Expenditure

( in millions of JPY )

	FY2008	FY2007	FY2006
Overall	4,773	3,294	3,063
Mirror system business	4,733	3,265	3,036

Mirror system business
-At the Fujieda plant, the Ooigawa plant and the Yaizu plant, production sites for Automotive Rear-view Mirrors, investment was made mainly to improve and expand the plants so as to rationalize and improve productivity, manage quality, and prepare manufacturing facilities to produce new products. At Murakami Kyushu Corporation, investment was made in production facilities in order to prepare for its production launch.

-A foreign-controlled corporation of the Company is constructing a new manufacturing facility to increase production capacity and improve productivity.


Investment Outside Japan
-The Company announced that it will set up a new production facility in China to make automotive rearview mirrors. The Company has established a wholly owned subsidiary, Jiaxing Murakami Automotive Parts, in Jiaxing City, Zhejiang Province, where it has acquired a piece of land that has an area or 66,000 square meters. The new production facility will start production in December 2009, targeting sales of 600 million yen in 2012. The plant aims to produce 2 million outer mirrors and inner mirrors respectively, per year. (From an article in the Nikkan Jidosha Shimbun on Oct.6, 2008)


New Facilities (Mirror System Business) (As of Mar. 2009)

Name (Location)	Type of facility	Planned total investment (in million JPY)	Start	Planned completion
Fujieda Plant (Shizuoka Pref., Japan)	Production facilities for Automotive Rear-view Mirrors	278	Apr. 2009	Mar. 2010
	Production facilities for fine glass	183	Apr. 2009	Mar. 2010
	Other	76	Apr. 2009	Mar. 2010
Yaizu Plant (Shizuoka Pref., Japan)	Production dies for Automotive Rear-view Mirrors	794	Apr. 2009	Mar. 2010
	Production facilities for fine glass	2	Apr. 2009	Mar. 2010
	Other	8	Apr. 2009	Mar. 2010
Ohigawa Plant (Shizuoka Pref., Japan)	Production facilities for Automotive Rear-view Mirrors	112	Apr. 2009	Mar. 2010