HORIBA to Adopt New Corporate Pension System from March 1, 2004

13 November 2003


HORIBA, Ltd. will adopt a new pension system on March 1, 2004, which will combine a defined contribution pension plan (Japanese-style 401(k)) and a cash-balance defined benefit plan, under an agreement recently reached between management and labor. By shifting from conventional pension-operation methods to the new system under which funds are not as sensitive to open market rates and the fund-operation environment, HORIBA aims to stabilize its financial resources for the pension program and to utilize revenues from its core businesses directly in its core operations. Because employees will manage their own pension funds, they will be able to make choices based on their personal lifestyle and will adopt a business/investor mindset. The system will be simultaneously introduced at our Group companies(in Japan), and synergistic effects are anticipated from personnel exchange.