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Epson Sues Over Land Deal

April 26, 2006

Seiko Epson Corp. ("Epson") announced that it had begun litigation in the Tokyo District Court against Oji Paper Co., Ltd. ("Oji Paper"). The action follows the discovery of buried industrial waste in land previously owned by Oji Paper at Epson's Hirooka Office. After a concerted effort to return the area to its natural state, Epson held a series of meetings with Oji Paper in which the former requested compensation for cleaning up the waste. Epson took the decision to start litigation after repeated negotiations failed to produce an agreement.

Background

Epson purchased the land in question from Oji Paper in July 2000. In July 2004, Epson discovered industrial waste in sludge form after boring a well to test the groundwater for arsenic. Epson then checked with previous landowner Oji Paper about the history of the industrial waste, and confirmed the connection between the waste and the business activities carried out by Oji Paper on the site. After disclosing the results of the survey into the buried industrial waste, Epson was instructed by the local authorities on handling the waste and other polluted materials. It then followed the correct cleanup procedures in consultation with Oji Paper. However, Epson was unable to obtain agreement about compensation for the survey and the cleanup, and took the unavoidable decision to begin litigation.


Details of industrial waste

Processing method

Amount of waste found
Approx. 9,200 tons

Amount of compensation claimed
640 million yen (correct as of April 20)

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