September 06, 2008

Investment fund calls for improving corporate value to Maruichi Steel

Steel Partners Japan Strategic Fund announced that it submitted to Maruichi Steel Tube Ltd a presentation entitled “Suggestions to Improve Corporate Value”. The Presentation, delivered to the Company on February 21st 2008, includes suggestions for improving financial competitiveness as well as comparative analysis of the Company’s current performance versus other companies in the steel sector.

Steel Partners Japan Strategic Fund stated its support for certain initiatives recently announced by the Company, including a new dividend policy that aims for an annual dividend of 40% of the parent company’s net profit, and a 500,000 share repurchase plan with maximum expenditure of JPY 1.7 billion. It believes that shareholder value could be further improved by the more efficient use of capital, as suggested in the Presentation.

Mr Warren Lichtenstein of Steel Partners Japan Strategic Fund said that “We applaud the Company for maintaining its leading domestic market position, with strong margins and stable profitability. We encourage management to capitalize on the progress it has already made.”

Steel Partners Japan Strategic Fund also believes the implementation of the suggestions contained in the Presentation could result in higher earnings per share and help the company achieve an 8% return on equity, the minimum return required by the Pension Fund Association to support the re election of directors to the Company’s Board of Directors.

Steel Partners Japan Strategic Fund is a long term relationship/active value investor that seeks to work with the management of its portfolio companies to increase corporate value for all stakeholders and shareholders.