September 18, 2007


Information about Transfer of Environmental Resources Development Business in Part

At the board of directorsf meeting held on September 18, 2007, Sanix Incorporated (Ticker: 4651, TSE/OSE/FSE, President & CEO: Shin-ichi Munemasa) resolved to transfer part of our Environmental Resources Development business operations to Asahi Pretec Corporation on November 1, 2007 (scheduled) in the following manner:


1. Reasons for Business Transfer
Since its establishment, our company has been engaged in the creation of comfortable social environments covering from general dwelling spaces to office buildings, condominiums, and other urban spaces under the consistent mission of gcleaning dirty places and making unsanitary places hygienic.h In the course of our business activities, we constructed the Kitakyushu Plant in Moji-ku, Kitakyushu City in April 1994 to enter the industrial waste-disposal business in the intermediate waste processing sector. Since then, we have expanded our business in the field of intermediate processing and recycling of industrial waste throughout Japan.
Our company is currently under way of strengthening business makeup and establishing a solid management foundation with an aim of drastic improvement of business performance, thereby continually developing profit-earning ability and ensuring sustainable increase of profit. As a result, we could return to profitability in the first quarter of this fiscal year. Based on the understanding that we should concentrate our management resources on the HS business operation, our core business, to further improve our business performance in the future, we made a decision to transfer part of our Environmental Resources Development business.


2. Outline of Business Transfer
(1) Description of the business to be transferred
Among the operations of our ERD Division, the Kyushu Branch Office, waste incineration plant, and discarded plastics processing plant located in Moji-ku, Kitakyushu, Fukuoka Prefecture and the businesses associated with these facilities will be transferred.

Description of business
Location (address)
Kyushu Branch Office belonging to Marketing Dept. 81-5, Shinmoji 3-chome, Moji-ku, Kitakyushu, Fukuoka Pref.
Kitakyushu incineration disposal plant Same as above
Kitakyushu discarded plastics processing plant Same as above


(2) Business Results of ERD Division
(Millions of Yen)
FY2005
FY2006
FY2007
Sales Revenue
10,309 10,198 9,612
Operating Income
(2,427) (1,601) (913)

(Reference: Results of the business to be transferred)
(Millions of Yen)
FY2005
FY2006
FY2007
Sales Revenue
1,572 1,286 1,589


(3) Assets and Liabilities to be transferred as of June 30, 2007
(Millions of Yen)
Assets
Liabilities
Current Assets
11
Current Liabilities
1
Fixed Assets
2,339
Fixed Liabilities
-
Total
2,351
Total
1


(4) Transfer price and settlement method
‡@ Transfer price
The transfer price will be determined based on the appraisement of the subject assets and debt on the date of transfer.
‡A Settlement method
The transfer will be settled in cash on the date of transfer.


3. Corporate Profile of Asahi Pretec Corporation
(1) Firm name Asahi Pretec Corporation
(2) Major business lines Recycling of precious metals and preservation of environment
(3) Date of incorporation April 1964
(4) Head office Uozakihama-cho 21, Higashinada-ku, Kobe, Hyogo Pref.
(5) Corporate representative Mitsuharu Terayama, President & CEO
(6) Capital \ 4,480 million (as of Mar. 31, 2007)
(7) No. of employees 945 (as of Mar. 31, 2007)
(8) Large stockholders and stockholding ratio Mitsuharu Terayama   3,702 thousand stocks (10.21%)
Masamichi Terayama   3,002 thousand stocks (8.28%)
(9) Relationship with our company There is no capital or personal relationship between two companies.


4. Time Schedule
Sep. 18, 2007 Resolution at board of directors' meeting
Sep. 18, 2007 Conclusion of business transfer contract (* with condition precedent)
Nov. 1, 2007 Transfer of business (scheduled)
 
* Since this business must not be carried out without official approval and license, this transfer contract cannot be executed until we can reasonably confirm that the transferee has met the following conditions: it can acquire the applicable official approvals and licenses; it has obtained the consent of the people living in the neighborhood regarding this business; it has taken over the major clients; and it has notified the Fair Trade Commission of Japan of entering this business.
 
* This business transfer contract is simplified business transfer that may not be approved at a general meeting of stockholders.


5. Effect on Business Performance
The effect of this business transfer on our business performance is unknown at present. We will let you know as soon as it becomes clear.


For more information, please contact:
Masahiro Shimojo, Director,
Management and Planning Division