Sanden Corporation has entered into a plea agreement with the US Department of Justice, or DOJ, based on charges that it violated US Antitrust law in connection with sales of compressors for automobile air conditioning systems. Sanden has fully cooperated with the DOJ throughout its investigation. The company decided to enter into the plea agreement upon consideration of the relevant facts and circumstances, agreeing to pay a fine of $3.2 million. In response to the situation, the company has taken measures to ensure full compliance with all relevant laws and regulations on an ongoing basis throughout its global organization.

The payment of the fine will be recorded as an extraordinary loss and will not have material impact on its consolidated financial forecast for the fiscal year ending March 31, 2015.