Murata is aware that among the various potential environmental risks involved in its activities that chemical contamination is of particular concern. We endeavor to avoid such eventualities through preemptive preventive measures, training and other strategies. We also promote risk reduction countermeasures targeting such environmental risks as waste and related problems.

In Japan and overseas, Murata consigns industrial waste disposal to legally authorized specialist contractors for proper treatment. In addition, we conduct regular site visits to confirm the management status of disposal sites.

In fiscal 2006, Murata recorded neither environmental accidents nor violations of environmental standards.

To clean up soil and groundwater contamination generated by Murata's past business activities, Murata has undertaken surveys and countermeasures ahead of other companies. We are actively implementing measures targeting early stage completion of remediation (decontamination).

Specifically, by the time groundwater permeation was prohibited according to the terms of the 1989 Water Pollution Prevention Law, 17 of Murata's 22 production plants and subsidiaries had already ceased using chlorinated organic solvents (trichloroethylene and five other substances). Moreover, use had been completely eliminated throughout the Company by 1998.

In 1991, Murata conducted voluntary detailed surveys of soil and groundwater contamination in all plants and subsidiaries using the latest technologies. The results confirmed contamination caused by use of chlorinated organic solvents necessitating remediation measures at 14 of the Company's 36 plants and subsidiaries.

At the 14 locations deemed in need of remediation, we sank observation wells along the borders of the sites so as to compile data on trichloroethylene and cis-1,2-dichloroethylene.

Plants and subsidiaries with relatively high pollution densities require an extensive period to complete remediation work. However, by supplementing existing methods with new technologies to facilitate completion within six months, we had completed cleanup at seven sites by fiscal 2005. For each site, depending on soil properties and the density and source of contamination we use one of three different remediation methods: the On-site Bio Method, the On-site Iron Powder Method or the Onsite Oxidation and Decomposition Method.

During fiscal 2006, we accelerated remediation at five sites: Hakui Murata Manufacturing Co., Ltd., Hakui Murata Manufacturing Co., Ltd., Togi Site, Iwami Murata Manufacturing Co., Ltd., Fukui Murata Manufacturing Co., Ltd., Shirayama Site and Fukui Murata Manufacturing Co., Ltd., Ozowara Site. We also concluded work at one new site, bringing the total of sites completed during the year to three.

Furthermore, Murata estimates the various costs incurred through to the completion of remediation work and enters them as liabilities in its corporate accounts.

• On-site Bio Method
  This method decomposes chlorinated organic solvents by injecting nutrients into the groundwater, in order to cultivate microbes present in the soil under anaerobic conditions.
• On-site Iron Powder Method
  Soil and iron powder are mixed on-site. The reducing power of metallic iron deoxidizes, decomposes, and renders harmless chlorinated organic solvents in soil.
• On-site Oxidation and Decomposition Method
  This is an oxidation and decomposition method using potassium permanganate. This method entails the direct injection of hydrogen peroxide into the groundwater, which directly oxidizes, decomposes and renders harmless various chlorinated organic solvents.

Plant/subsidiary	Trichloroethylene (0.03≥)	Cis-1,2-dichloroethylene (0.04≥)	Remarks
Murata Manufacturing Co., Ltd., Head Office, Nagaoka Plant	0.020	N.D.
Fukui Murata Manufacturing Co., Ltd., Takefu Plant	0.013	--	Preparation for completion
Fukui Murata Manufacturing Co., Ltd., Shirayama Site	0.891	0.258
Fukui Murata Manufacturing Co., Ltd., Miyazaki Plant	1.356	0.246
Asuwa Electronics Industries, Ltd.	0.001	0.012
Iwami Murata Manufacturing Co., Ltd.	0.473	1.016
Wakura Murata Manufacturing Co.,Ltd.	N.D.	--	Remediation complete
Himi Murata Manufacturing Co., Ltd.	N.D.	N.D.
Kanazu Murata Manufacturing Co., Ltd., Kanazu Plant	N.D.	--	Remediation complete
Kanazu Murata Manufacturing Co., Ltd., Natsume Plant	0.050	0.100
Hakui Murata Manufacturing Co., Ltd.	N.D.	0.056
Hakui Murata Manufacturing Co., Ltd., Togi Site	0.002	0.211
Toyama Murata Manufacturing Co., Ltd.	N.D.	--	Remediation complete

Expenditure up to fiscal 2006		Estimate from fiscal 2007		Total
Non-consolidatea	Consolidated	Non-consolidatea	Consolidated	Non-consolidatea	Consolidated
1,117	7,840	531	3,449	1,648	11,289