Nikkiso Co., Ltd. (the “Company”) resolved, at its board of directors meeting, to transfer all of its shareholdings in its consolidated subsidiaries, MicrotracBEL Corp. and Microtrac, Inc., to Verder International B.V., as described below.

As a result, MicrotracBEL Corp. and Microtrac, Inc. are excluded from the Company’s consolidated subsidiaries.

1. Reasons for share transfers

To respond appropriately to changes in business environments and achieve further growth, the Company has made upfront investments necessary for its growth, including the acquisition of the Cryogenic Industries Group (U.S.) and the construction of new factories in Miyazaki and Vietnam. The Company also aims to improve its profitability and corporate value by reviewing its business portfolio.

The Company has handled the particle analysis instruments business via MicrotracBEL Corp. and Microtrac, Inc., its consolidated subsidiaries, in the Precision Equipment Business, one of its main businesses. We have reconsidered how closely the business operations are related to our main businesses and mutual growth strategies.As a result, theCompany has concluded that the best choice would be to separate them from the Nikkiso Group and let them expand and develop their businesses under the control of Verder International B.V. (Netherlands), which manufactures and sells scientific instruments, laboratory equipment, and pumps, and decided to transfer the said shares this time.

2. Outline of subsidiaries to be changed

(i) Outline of MicrotracBEL Corp.

(1) Company Name MicrotracBEL Corp.

(2) Address of Headquarters 8-2-52 Nanko-higashi, Suminoe-ku, Osaka-shi, Osaka

(3) Tittle and Name of Representative President & CEO Kazuyuki Nakai

(4) Business Description Development, manufacturing, and sales of particle analysis instruments, material analysis equipment, etc.

(5) Capital JPY 65.8 million

(6) Date Established October 1, 2014

(7) Major shareholder Nikkiso Co., Ltd. (100% ownership)

(8) Relationship with Nikkiso

Capital relationship
The Company owns 100% of the shares.

Human relationship
The Company has dispatched two directors and one corporate auditor.

Transaction relationship
None in particular

(ii) Outline of Microtrac, Inc.

(1) Company Name
Microtrac, Inc. 2

(2) Address of Headquarters
215 Keystone Drive Montgomeryville, PA 18936, U.S.A.

(3) Title and Name of Representative
Director & CEO Dennis Martin

(4) Business Description
Manufacturing and sales of Microtrac particle-size distribution analyzers and particle analysis instruments

(5) Capital
USD 3 million

(6) Date Established
January 1, 2000

(7) Major shareholder
Nikkiso America,Inc. 100%

(8) Relationship with Nikkiso

Capital relationship
The Company’s consolidated subsidiary owns 100% of the shares.

Human relationship
The Nikkiso Group has dispatched three directors.

Transaction relationship
None in particular

(iii) Operating results and financial positions for the last three years (combined results for MicrotracBEL Corp. and Microtrac, Inc.)