The Board of Directors of Nihon Dempa Kogyo Co., Ltd. (hereinafter referred to as "Company") resolved at a meeting on July 29, 2005 the issuance of Stock Acquisition Rights ("Shinkabu Yoyaku Ken" under the Japanese Commercial Code), pursuant to the Articles 280-20, 280-21 of the Japanese Commercial Code and under the resolution by the 64th Ordinary General Meeting of Shareholders. The details are as follows:

1. Issue Date of Stock Acquisition Rights:

Issue Date of Stock Acquisition Rights is expected to be August 9, 2005

2. Number of Stock Acquisition Rights to be issued:

1,866

The number of shares to be issued or transferred in lieu of such issuance upon exercise of each Stock Acquisition Right shall be 100.

3. Issue price of Stock Acquisition Rights:

The Stock Acquisition Rights shall be issued at free of charge.

4. Class and number of shares to be issued or transferred upon exercise of Stock Acquisition Rights:

186,600 shares of common stock of the Company.

5. The Amount to be Paid upon Exercise of Stock Acquisition Rights:

To be determined on August 9, 2005

6. Total paid-in value of the shares of the common stock of the Company to be issued or transferred upon exercise of all the Stock Acquisition Rights:

To be determined on August 9, 2005

7. Amount to be accounted for as stated capital in respect of shares to be issued upon exercise of Stock Acquisition Rights:

The amount to be accounted for as stated capital shall be the amount obtained by multiplying the Exercise Price by 0.5, and any fraction less than one(1)yen resulting from this calculation shall be rounded up to the nearest one(1)yen.

8. Exercise Period of Stock Acquisition Rights:

From July 1, 2007 to June 30, 2011

9. Individuals who will be allotted the Stock Acquisition Rights:

14 directors and 199 employees of the Company as well as 6 directors and 31 employees of its subsidiaries.

References:

1. Date of resolution of the Board of Directors that decided the proposal at the Ordinary General Meeting of Shareholders:

April 27, 2005

2. Date of resolution of the Ordinary General Meeting of Shareholders:

June 29, 2005