Parent Companies of Echo and Shindaiwa Build Alliance for the Future

[StephenTucker]

“FOR IMMEDIATE RELEASE”
Parent Companies of Echo and Shindaiwa Build Alliance for the Future
Tualatin, OR (May 21, 2007) - Kioritz Corporation of Japan, parent company of ECHO Incorporated, and
Shindaiwa Corporation, parent company of Shindaiwa Incorporated, have announced a business and
shareholder alliance. The alliance provides the two international corporations the opportunity to investigate
mutual means of addressing today’s increasingly competitive global environment through product and
operational synergies.
“Increased consolidation within the outdoor power equipment industry, the rising cost of product
development, and the need to meet changing worldwide environmental standards all contributed to the
formation of this alliance,” explains Mr. Chuck Kitazume, Kioritz President and CEO.
“In recent years, the industry’s competition has intensified, including the entry of low-priced products form
China and other developing countries,” adds Mr. Y. Asamato, President and CEO of Shindaiwa Corporation.
“Substantial investment and advanced technology will be required to meet these new competitive
challenges.”
“It is too early to say where this alliance will go long term,” adds Mr. Kitazume. “We do know there are
opportunities for cooperation in product development, sourcing, and manufacturing.” Partnership between
the two companies is not new. Kioritz has been supplying chain saws to Shindaiwa for the Japanese market
since 2001. This alliance formalizes and strengthens an ongoing partnership.
While working jointly on various projects, ECHO and Shindaiwa will maintain their unique identities in the
marketplace and remain autonomous companies.
ECHO Incorporated, Lake Zurich, IL, is a subsidiary of Kioritz Corporation, Tokyo, Japan, a global
manufacturer and seller of forestry, agricultural, and outdoor power equipment. Shindaiwa Incorporated,
Portland, OR, is a wholly owned subsidiary of Shindaiwa Corporation, Hiroshima, Japan, a global
manufacturer and seller of welding machines and generators, agricultural and forestry machinery, and
outdoor power equipment. Both companies are publicly traded on the Tokyo Stock Exchange.