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Oct 02, 2018

IR Corporate

Acquisition of the oxygen-related products business of Chart Industries, Inc.,
a leading global manufacturer of highly engineered equipment

Nagoya, October 2, 2018―NGK SPARK PLUG CO., LTD. (Chairman, President, and CEO: Shinichi Odo, Headquarters: Nagoya, hereafter NGK SPARK PLUG) hereby announces that it has signed a definitive agreement to acquire all the shares of each of CAIRE Inc. in the United States, Chart BioMedical Limited in the United Kingdom and Chart BioMedical (Chengdu) Co., Ltd. in China from certain subsidiaries of Chart Industries, Inc.

1. Background and Purpose
NGK SPARK PLUG’s seventh medium-term management plan is currently underway and the company is promoting "Accelerating Current & New Businesses" as a fundamental policy. The company will continue to develop core technology cultivated in existing automobile related businesses and technical ceramics related businesses, and invest resources for product development in three market areas where growth is expected: "environment and energy", "next generation automobile" and "medical".

In the medical sector, we have been developing our implant and oxygen concentrator equipment businesses. In the past, we have expanded and invested in our implant business through strategic cooperation and M&A.

Similarly, we have been evaluating the expansion of our medical use oxygen concentrator sales to overseas markets. We have been developing and selling medical use oxygen concentrator products in Japan since 1999. Increasing demand for portable oxygen concentrators led us to consider ways to effectively address this growing demand.

The acquired companies and their subsidiaries: CAIRE, Inc. in the United States, Chart BioMedical Limited in the United Kingdom and Chart BioMedical (Chengdu) Co., Ltd. in China, are leaders in oxygen-related products across the respiratory industry, with oxygen concentrators as their core business. These companies’ products also include liquid oxygen systems and oxygen generation systems used in hospitals and other institutions.

As the acquired companies join the NGK SPARK PLUG group, we will work to build a strong global oxygen-related products business that will benefit from our global value chain spanning from development to production and sales. We will also incorporate our technical strengths it developed in domestic market to new CAIRE products.

While growing the medical business of NGK SPARK PLUG Group through this acquisition, including synergies with our asthma detection system that utilizes our material and sensing technologies, we will also use these technologies to contribute positively to the environment and society.

2. Outline of this acquisition
 1) Signing Date      :September 28, 2018
 2) Details        :NGK SPARK PLUG signed an agreement to acquire all shares of CAIRE Inc. in the United States,
                Chart BioMedical Limited in the United Kingdom and Chart BioMedical (Chengdu) Co., Ltd. in China
 3) Transaction Value   :US$ 133.5 million
 4) Expected Closing Date:December, 2018

3. About CAIRE Inc.
 1) Company Name:CAIRE Inc.
 2) Established   :1992
 3) Headquarters  :Ball Ground, Georgia, USA
 4) CEO      :Earl Lawson
 5) Business outline:Develop, manufacture and sale of oxygen concentrators
 6) Sales      :US $145 million (combined basis of acquired companies, financial year ended December 2017)
 7) Employees   :416 (total number of employees of all acquired companies combined, as of August 2018)
 8) Company profile:
  CAIRE Inc. is part of the biomedical segment of Chart Industries, Inc. and is a leading global manufacturer of medical oxygen concentrators and other oxygen delivery equipment for individuals with respiratory conditions including Chronic Obstructive Pulmonary Disease (COPD). It produces portable, transportable and stationary concentrators, liquid oxygen systems, and oxygen systems used in military applications. CAIRE’s products are marketed under the CAIRE, AirSep and SeQual brands.

4. About Chart BioMedical Limited
 1) Company Name :Chart BioMedical Limited
 2) Established    :2001
 3) Headquarters   :Wokingham, Berkshire, UK
 4) CEO       :Earl Lawson
 5) Business outline  :Sale and production of oxygen concentrators
 6) Company profile :Oxygen concentrator business. European sales promotion base of the CAIRE business.

5. About Chart BioMedical (Chengdu) Co., Ltd.
 1) Company Name:Chart BioMedical (Chengdu) Co., Ltd.
 2) Established   :2009 (former original company was established 1976)
 3) Headquarters  :Chengdu, Sichuan, China
 4) CEO      :Earl Lawson
 5) Business outline:Manufacture and sale of oxygen concentrators
 6) Company profile :
   Chart BioMedical Chengdu is based in China and currently manufactures stationary and transportable oxygen concentrators for the CAIRE business.

6.Impact on the Company's business performance
 The effect of this acquisition on our forecast for current financial year, ending March 2019 will be minor.