TDK Corporation Announces Withdrawal From the Manufacturing of Recordable CD&DVD Accelerating the Restructuring Recording Media Business

TDK Corporation (NYSE:TDK) announced today that theboard of directors decided at the board meeting held on March 8, 2006,to further accelerate the restructuring of recording media business,to withdraw from the manufacturing of recordable CD&DVD products inTDK group. Consequently, TDK decided to shut down the productionfacilities at its European subsidiary, TDK Recording Media Europe inGrand Duchy of Luxembourg. The shut down is planned to take place atthe end of May 2006. This decision completes TDK's withdrawal from themanufacturing of recordable CD & DVD products, coupled with thereorganization of plants in Chikumagawa area (Nagano, Japan)implemented at the end of last year.

TDK Corporation and its group companies (hereinafter called "TDK")have been fundamentally restructuring the recording media businessduring this fiscal year. While reviewing the progress of therestructuring and future strategies of the recording media business,TDK has looked for ways to re-strengthen the manufacturing ofrecordable CD&DVD foundations from various perspectives. However, asharp drop in market prices of recordable CD&DVDs as well as theincreased cost of natural resources has led the recording mediabusiness in TDK to serious problems. After studies of measure forre-strengthening manufacturing, the decision of withdrawal from themanufacturing of recordable CD & DVDs that TDK management has madeshould lead to an improvement and reform of recording media businessto change fundamentally the business model.

With this decision, TDK will accelerate ODM business model for thecurrent generation of recordable CD&DVD products, or the third partysupply.

In the domain of blue laser disc, a product much expected to growin the near future, TDK will continue its R&D and manufacturingactivities, the latter exclusively focused on highly value-addedproducts, by utilizing the pilot production lines established atChikumagawa Tecno Plan in Japan. TDK will also concentrate itsresources on strengthening data storage tape business, which isanother core business.

Through implementation of a series of restructuring activities,TDK will improve the business structure of recording media businessall at once, seek improvement of efficiency and profitability for thefuture, and accelerate changes in the business structure anddevelopment of core products.

Estimated Impact to the forecast profit for this fiscal year

The planned expenses needed in relation to the announcedwithdrawal from the manufacturing of CD and DVD will amount toapproximately 8 billion yen.

(a) Supplements

About TDK Recording Media Europe S.A.

1. Location Bascharage, Grand Duchy of Luxembourg

2. President Mr. Toru IDE

3. Established in 1990

4. Paid-in
Capital Euro 82,846,016

5. Parent and
shares TDK Europe S.A. 100%
TDK Europe S.A. is a TDK's wholly owned company.
6. Number of
Employees 431

7. Products
and
capacity CD-R 7 Million Pcs./month,
DVD-R/+R 8 Million Pcs./month

(a) Data as of end Feb. 2006

About TDK Corporation

TDK Corporation (NYSE:TDK) is a leading global electronicscompany based in Japan. It was established in 1935 to commercialize"ferrite," a key material in electronics and magnetics. TDK's currentproduct line includes ferrite materials, electronic components,wireless computer networking products, magnetic heads for HDD, andadvanced digital recording media. For more information about TDK,please visit http://www.tdk.co.jp/tetop01/index.htm