January 29, 2007

Commencement of Preparation for Initial Public Offering of Stock of
Allegro MicroSystems, Inc., a 100% U.S. subsidiary of the Company

The board of directors of Sanken Electric Co., Ltd. (the "Company") has decided today that it will commence preparations to publicly offer and list the shares of Allegro MicroSystems, Inc. ("Allegro"), its wholly-owned U.S. subsidiary.

While the detailed terms of the public offering will be discussed between the Company and Allegro going forward, set forth below is the current offering plan.

In addition, upon the public offering of Allegro's shares, the Company currently expects that it will continue to own substantial majority of the shares of Allegro. The Company intends to continue its collaboration with Allegro on technology and product development as well as business operations, and through such collaboration it will strive for the continued growth of Allegro as well as the Sanken group.
Note
Name of Shares Anticipated to be Offered Publicly: Common shares of Allegro MicroSystems, Inc.
Anticipated Change in Ownership Percentage: Currently, the Company owns 100% of the common shares of Allegro. Upon completion of the initial public offering, the Company anticipates that it will own substantial majority of the common shares of Allegro.
Anticipated Public Offering Period: Second half of 2007, however, such offering is subject to obtaining requisite approvals from the relevant regulatory authorities, market conditions, and approval of the board of directors of the Company and Allegro.
Anticipated Method of Offer: Fully underwritten public offering.
Purpose of Offer: Raise capital to finance various activities of the Company and Allegro, including capital investment for research and development and to strengthen production capabilities.

The above terms are tentative and subject to change.

Note: This notice is prepared for the purpose of public disclosure of the Company's decision to commence preparations for public offering of stock of Allegro, but is not prepared for the purpose of investment solicitation or any other acts similar thereto, either within Japan, the United States or elsewhere. This notice does not constitute an offer of any securities for sale in Japan, the United States or elsewhere. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The offering of securities described above is expected to be conducted pursuant to registration documents prepared in accordance with the United States federal securities laws and regulations.
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