We deeply appreciate all of your support to our company.

Chip One Stop is a leading semiconductor and electronic component distributor so-called “catalog / online / high-service distributor” in Japan, focused on the design engineering/development, prototype, maintenance/repair, and small lot production. Providing an innovative online service at "www.chip1stop.com", the company has grown to the first public company as B to B online service by IPO in October 2004 at Tokyo Stock Exchange.

Since 2001, we have worked on our best to satisfy customers’ needs regardless of the size of the order and/or quantity through our web site, and developed a small lot fulfillment market of electronic components and semiconductors. As a result of the policy and the effort, the company achieved approx. 107,000 registered members from approx. 36,600 companies/organizations as of June 30, 2011.

In the first half of fiscal year of 2011, the number of orders and shipments has slightly increased compared to last half. Especially after the Tohoku Earthquake in Japan, we were able to respond customer’s needs by expanding our own stock and leveraging our global purchasing source. As a result of these, growth rate of revenue and profit has risen in specially second quarter of FY2011 and also it could achieved same level of revenue as the first half of previous fiscal year which was record high in the company‘s history. At the same time, we achieved the significant product line enlargement and sales channel extension through alliances with major electronic components and semiconductor manufacturers, and we reinforced customer services and web based functionalities including linking with intranet purchasing site of major electronic manufactures.

We recognize the market is about to fully accept our new service and business model of "Fast Delivery with No Minimum Order". We continue to make aggressive investment to promotional activities and strategic business development, and also pursue the opportunity for Asian market from now on to drive our business growth.

We have been revolutionary developing new distribution systems of electronic components and semiconductors in Japanese market that is traditionally divided by seller's sales network mainly for mass-production market. Although Japanese electronics market has been changing to design oriented job function rather than mass-production oriented function, traditional distributors have not been providing one stop shopping, quick turn around, small lot fulfillment and online services in Japan. As a pioneer of this new distribution systems in Japan having a big opportunity with a large number of customers in engineers' community, we keep trying to achieve more customers from more than 500,000 potential design engineers' and buyers' community and getting more revenue from several billion dollar market of engineering/prototype, maintenance/repairing, and small lot production in Japan, which is glowing profitable niche market.

As of August 8th, 2011, Arrow Electronics Inc.(NYSE:ARW) has launched a tender offer for Chip One Stop Inc. and our board announced supportive opinion for the tender offering at the same date. As described in Japanese news release, Chip One Stop is planning to use same brand name with more global approach by its strategic partnership if the tender offer is succeeded. Arrow Electronics’ news release in English language can be accessed by the following web site.
http://investor.arrow.com/phoenix.zhtml?c=85834&p=irol-newsArticle&ID=1594050&highlight=