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The Professional Systems business consists mainly of Kenwood’s Land Mobile Radio business and JVC’s professional AV systems business.

In the Land Mobile Radio business, which boasts the world’s second largest market share, sales of products for the public safety sector (police and fire departments and public transportation such as railways and buses) remain robust, particularly in the overseas markets. Given that investments in the public, safety and environment fields are expected to increase worldwide, the Group is boosting sales of digital Land Mobile Radio equipment by offering advanced features such as high privacy functionality, and expanding its business domain from the supply of terminals to also include the supply of system solutions that feature the wireless communications command and control systems of Zetron, Inc.^*

In the professional AV systems business, where we regard security as our highest priority business, we are striving to win more orders by introducing new product lineups that utilize our camera and mechatronics technologies. In the creation business, by taking advantage of changes in formats and media worldwide, we are growing and expanding this business by accelerating the development of products such as commercial camcorders using the entire Group’s resources, with the goal of making the business highly profitable.

Furthermore, by combining both companies’ operations’ technologies and expertise we are implementing an aggressive sales strategy for a new multimedia security system that combines Land Mobile Radio terminals, a wireless communications command/control system and security cameras. Through this initiative, we aim to raise the ratio of our B-to-B business as a part of total sales — particularly for the public safety sector — throughout the entire Group, and to establish a stable earnings structure that is resistant to economic fluctuations.

*A U.S. wireless communications system company that Kenwood turned into a subsidiary in May 2007.