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The Professional Systems business consists of Kenwood’s wireless equipment segment, including land mobile radio, amateur radios and specific power-saving transceivers, and JVC’s business solutions segment centering on professional AV equipment and systems.

The Land Mobile Radio business boasts the world’s second largest market share. It supplies highly reliable professional radio terminals and systems for the public safety sector (police and fire departments), the public service sector (electricity, water and gas), and the private sector (railways, buses, hotels and plants), particularly in overseas markets. Affected by the economic crisis, orders received were sluggish mainly for products for the public safety market in the U.S., which is the largest market. However, sales of NEXEDGE®, a digital radio that JVC Kenwood originally developed, increased sharply for railway companies in the U.S. and private-sector markets in Europe, Asia and other regions. Consequently, this business remained profitable.

The business solutions segment supplies security cameras, professional-use audio equipment and facilities, video cameras, monitors and ID printers chiefly to private-sector markets. The recovery in demand for these products was delayed, hurt by a freeze on private-sector capital spending both in Japan and abroad amid the economic crisis. However, the profit and loss of this segment improved at a faster pace than estimated earlier mainly thanks to the effects of previous structural reforms.

In future, in the Land Mobile Radio business, we will strive to increase sales of digital, professional-use radio, centering on NEXEDGE®. We will do this by taking advantage of the transition period from analog to digital. In addition, we will expand the domain of this business from the supply of radio terminals to the supply of system solutions, with Zetron, Inc., a U.S. radio communications system company, as the core. Furthermore, we will expand our business in Japan, China, Asia and Europe, and create a new driving force for growth.

The business solutions segment will enhance its technology-based marketing and shift from the individual hardware business to the solution business that integrates products, content and services. It will also expand proprietary products and services which make the most use of the video technology and the image compression technology. These technologies realize four to eight times the resolution of Hi-Vision. It will also utilize the 3D image technology that converts 2D images into high-precision 3D images on a real-time basis. The segment will also endeavor to expand and enhance operations by actively working on cooperation and alliance with other companies.

In addition, through integrated management of Kenwood’s land mobile radio segment and JVC’s business solutions segment, we will aim to share the two companies’ resources, such as sales networks, expand the Professional Systems business and strengthen its competitiveness. At the same time, we will create a new business in response to the expansion in the public safety and security markets by commercializing a wireless transmission system for surveillance camera images that combines both companies’ technologies and know-how.