Update on safety verification status concerning improper conduct in the Kobe Steel Group

We once again deeply apologize for the considerable trouble we have caused to our customers, suppliers, shareholders and many others concerning the improper conduct in Kobe Steel, Ltd. and its group companies (collectively, the “Kobe Steel Group”). Regarding the verification status of the safety of customers' products that have used our nonconforming products, Kobe Steel reports on the progress it has made at this time (as of March 23).

For customers to whom nonconforming products — which were found through the self-inspections conducted by the Kobe Steel Group and through the investigations by the Independent Investigation Committee (the “IIC”) covering the past one year — were shipped and for products other than those delivered directly to customers, Kobe Steel at this time has not confirmed cases that would require the immediate suspension of use or immediate recall of the products.

Owing to the enormous amount of cooperation from its customers, the Kobe Steel Group is earnestly proceeding with safety verification. At this time as outlined in Table 1, the safety has been confirmed at 520 companies out of the 525 companies to whom nonconforming products were delivered as announced on October 26, 2017, and 141 companies out of an additional 163 companies identified since the establishment of the IIC on October 26, 2018 as announced on March 6, 2018.

The Kobe Steel Group will continue to wholeheartedly devote itself to cooperating with its customers in order to complete the safety verifications at an early time.

From now on, updates on the safety verifications will be posted on our website when progress is made.