Quantum Design Japan. Introducing Advanced Technology to Japan

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1 Introducing Advanced Technology to Japan

2 Profile Incorp. date: July 1, 1997 Ownership: Business: Offices: Employees: Revenue: < $25M Address: Subsidiary of Quantum Design Sales and service of scientific instruments Tokyo (HQ, technical center) Osaka (sales & service for western Japan) Seoul, South Korea (sales & service for Korean market) 41 (30 in Japan, 11 in South Korea) Quantum Design Japan Takamatsu, Toshima ku Tokyo, , Japan Ph: 81 (0)

3 History Quantum Design (QD) was founded in 1982 and has steadily grown to become a leading manufacturer of instruments for materials research. Since the beginning, Japan, with their world-renowned research facilities, has always been a critical market for QD. In 1997, the Quantum Design Japan (QDJ) office was founded for the purpose of providing local sales and service support to the Japan market. The original QDJ office consisted of 7 members and was the first QD office to open outside of the US. From the beginning, QDJ s mission has been to offer top-level technical support to the Japanese market. This technical support includes application support in support of sales, installation of instruments, and continues to any after-installation support requirements. With our strong technical base service the research markets of Japan, QDJ has always been ideally positioned to offer distribution services to leading-edge companies looking for access to the Japan market. Thus soon after the Tokyo office opened, QDJ began offering distribution services to high tech companies wanting to penetrate the Japanese market. In 2003, the QD Korea (QDK) office opened as a subsidiary of the QDJ office with 4 original members. This has grown to 11 members. Similar to QDJ, QDK offers distribution services to manufacturers in addition to sales and service of QD products. Similar to the QDJ model, QDK has found success by emphasizing superior technical support, from sales support through after-installation service support. With our commitment to provide market-leading technical support, QDJ has steadily grown to over 30 people with annual revenue of more than $25M. This performance has been achieved by growth in both the QD products as well as those of our partners. Today, we offer full distribution services to over 20 leading-edge suppliers of scientific instruments.

4 Resources Employees - Over 30% of the QDJ staff is dedicated to technical support. This support includes application engineers dedicated to a specific product line to help support the sales engineers. All of our technical support team have advanced degrees and typically many years of experience in their respective field. A further 30% of the QDJ staff is dedicated to sales and marketing, with QDJ s level of technical competence extending to the sales and marketing team. The typical QDJ sales engineer has at least 10 years experience in a specific area. This sales expertise backed up by a strong technical staff allows us to offer superior technical support throughout the sales process, from product introduction to any after-installation support requirements. Lab space - For success in Japan, it is important to have the facilities for performing product demonstrations. As such, QDJ has a well equipped application s lab and space for demonstration equipment. QDJ typically works with our partners to establish fully-outfitted demonstration facilities, allowing for detailed product demonstrations. Technologies - Following are some technologies that QDJ has expertise in: Materials research Thermal analysis Spectroscopy Surface analysis Low temperature instrumentation Particle characterization Nanotechnology In-line process control Laser and optics Semiconductor inspection Motion and position control Medical diagnostics Biotechnology

5 Sales & Marketing Promotions - Promotion activities include a continuously updated website in the Japanese language. In addition, we promote heavily in the most appropriate trade journals and industryspecific web sites. Using our extensive customer database, QDJ also promotes via direct mailings to targeted customers. To make our promotion efforts more effective, QDJ translates brochures, application notes, and other collateral provided by the manufacturer to Japanese. Seminars - QDJ hosts technical seminars on a regular basis. Often, this is done in collaboration with our partners where a technical specialist will visit Japan for support of seminars and other user meetings. Exhibitions - QDJ is active in attending exhibitions as this is the best way to reach customers. We target niche exhibitions that are most suitable for a specific partner. In addition to making Japanese language posters, demonstration products are typically on display in the QDJ booth. Schedule of events for 2013 Jan: Nanotech Japan Mar: Physical Society of Japan Spring Meeting May: Cryogenic and Superconductivity Society of Japan Spring Meeting July: Interphex Japan Sept: Japan Analytical and Scientific Instruments Show (formerly JASIS) Sept: Physical Society of Japan Fall Meeting Oct: INCHEM Tokyo 2013

6 Materials & Low Temperature Research Customer Base Academia Government R&D Labs Industrial R&D Labs Principles Quantum Design - World s leading supplier of instruments for materials research IQuantum - Low temperature He3 refrigerators for sensitive magnetization measurements Montana Instruments - Cryogen-free, low vibration optical cryostats PicoTherm - Systems for measuring thermal diffusivity and other thermal properties of materials Neocera - Pulse laser deposition systems HPD - High performance cryostats and other low temperature instrumentation

7 Analytical & Measurement Customer Base Academia Government R&D Labs Industrial R&D Labs Fine Chemical Manufacturers Pharmaceutical Principles NanoSight - Systems for characterizing nanoparticles Optek - Products for in-line process control NT-MDT - Raman AFM and SPM spectroscopy instruments Lyncee Tec Digital holographic microscopy imaging systems DonnerTech - Particle shape and size characterization systems

8 Biotechnology Customer base Pharmaceutical Academia Government R&D Labs Clinical Chemistry Labs Diagnostic Test Developers & Manufacturers Principles MagnaBioSciences - Immuno-chromatographic tests and readers based on magnetic detection technology Ocean Nanotech - Nanocrystals for biological applications NanoScaleBiomagnetics Instruments for inductive nano-heating

9 Additional Technologies OptoElectronics Digital Optics Corp - Imaging and micro-optics solutions provider Motion Control and Encoder Technology Zaber Technologies - Computer controlled positioning stages Netzer - Rotary and linear position encoders Lika Precision encoders Arun Microelectronics Limited Vacuum compatible motion systems

10 Summary of Strengths Diverse Technical Staff - Due to over 15 years experience in distributing high tech instruments, QDJ has the technical resources to cover all technical support requirements. Financial Strength - QDJ has been profitable every year of our existence. We have the resources to invest now for long-term success in joint collaboration with our partners. Laboratory Facilities - With our laboratory space, QDJ can work with our partners to establish a full featured demonstration facility. Communication Skills - QDJ personnel, from sales, technical, as well as administration, are able to communicate in English. Thus QDJ can provide smooth communications between the customer and manufacturer regardless the situation. Direct Sales & Marketing Approach - With QDJ s focus on technology, we can sell and market direct to the appropriate customer base. This is in contrast to other Japanese distributors that rely on local sub-dealers and catalogue sales. Long Term Flexibility - Regardless of your long-term goals, QDJ offers the stability and flexibility to ensure success in Japan. If you are interested in collaborating with QDJ in Japan, please contact: Kazunari Araki Director of Sales & Marketing araki@qdj.co.jp

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