TDK has concluded a basic agreement with Alps Electric regarding an acquisition from Alps of its equipment and intellectual property rights such as patent properties and know-how concerning HDD (Hard Disc Drive) head business, and has commenced negotiations with Alps to conclude a definitive contract. Through the acquisition of Alps' technology and know-how, the proposed definitive contract will enabling TDK to offer enhanced technologies. Furthermore, TDK will make timely report on the schedule and contents of this transaction along with the financial effect of acquisition as soon as the both parties reach certain milestones during the ongoing discussion.

TDK is a global electronics company based in Japan. It was established in 1935 to commercialize "ferrite," a key material in electronics and magnetics. TDK's current product line includes ferrite materials, electronic components, wireless computer networking products, magnetic heads for HDD, and advanced digital recording media. Net sales in FY March 2006 were ca. US $6.8 billion.

Alps Electric, a Japanese corporation, is engaged in manufacture and sale of electric and electronic components and parts. Alps has manufactured various electronic components since its foundation in 1948. Alps provides electronic components for Mechatronic Devices, Automotive Electronics, Communications, Peripheral Products and Magnetic Devices. Net sales in FY March 2006 were ca. US $6 billion.