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July 27, 2005

Started Massproduction of Fluorescent X-ray Analyzers and Fluorescent X-ray Coating Thickness Gauges at China-based Subsidiary

SII NanoTechnology Inc., announced today that it started to massproduce fluorescence X-ray analyzers and fluorescence X-ray coating thickness gauges at its China-based subsidiary.

With the aim of embarking upon the Chinese market, in November last year, SII NanoTechnology established its China-based subsidiary, SII NanoTechnology (Shanghai) Inc. that comprehensively covers the business of production, sales and service/support throughout China. SII NanoTechnology (Shanghai) that had finalized plant startup preparation, including pre-massproduction tests, passed strict product inspection and plant examination, and then successfully acquired the production license by and from the China Municipal bureau of Quality and Technical Supervision in early July 2005. This allowed everything to be gotten up and full-scale mass-production to begin.

The models massproduced in China are SEA1000A fluorescence X-rays analyzers used in detection of hazardous substances such as Cd, Lead and Mercury etc. restricted by RoHS Directive*, and SFT9100M X-ray coating thickness gauges for use in electronic parts. 20 units in total for both models will be produced monthly and mainly marketed throughout China.

China ranks among the fastest economic and industrial developing countries in the world. In this connection, the demand for analysis instruments is increasingly expanded in China. To meet such a demand, SII NanoTechnology has decided to embark upon the local production of the above instruments. It was the first foreign manufacturer to massproduce analysis and measurement instruments in China.

SII NanoTechnology (Shanghai) is operated by an integrated organization staffed by 30 people in charge of production, sales and service/support to provide customers in China with high quality analysis and measurement products and more-enhanced services.

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