[SEDXC] Letter on Yaesu from Dennis

[BLamboley at aol.com]

>From Dennis, K7BV: 

Friends, 

By now, many of you may have heard that Vertex Standard Co., Ltd, (Vertex 
Standard USA's parent company) announced that they have agreed to form a 
collaborative joint venture with Motorola, Inc. I personally believe the most 
important words in this sentence are "collaborative joint venture“ a business 
relationship that indicates a far different outcome intent than the demise of one of 
the venture partners. 

Since Yaesu is the Amateur Radio Division of Vertex Standard, I am sure you 
are just as curious as me, a Yaesu employee with a job at stake, to know what 
this business transaction will mean to all of us in the hobby. Predictably, I 
see that the news about the pending new Motorola relationship with Vertex 
Standard, hence Yaesu, is giving life to all sorts of misinformation and 
"doomsday". Internet postings by the usual cast of characters who always seem to know so 
much more about things than the rest of us mere mortals. After studying 
public announcements and considering the internal information that is made 
available to me in my role as the leadership individual for North American sales at 
Yaesu, I would like to offer the following FACTS about this exciting 
development. 
Motorola, Inc. (NYSE: MOT) will launch a tender offer to acquire a 
controlling interest in Vertex Standard Co., Ltd. (JASDAQ: 6821). Upon successful 
completion of the tender offer and subsequent restructuring process, Motorola will 
own 80% of Vertex Standard and Toko Giken, a privately held Japanese company, 
controlled by Jun Hasegawa, current president and CEO of Vertex Standard, will 
retain 20%, forming a joint venture. On 5 November 2007, the Board of 
Directors of Vertex Standard expressed their support of the tender offer. Yaesu, of 
course, as one of the Vertex Standard operations, will be included in this 
exciting development. 

I want our Yaesu customers and concerned others to know the following about 
the proposed merger: 

Vertex Standard (meaning Yaesu to us in the Amateur Radio hobby) will remain 
a separate, global organization with distinct resources governed by the Board 
of Directors comprised of four Motorola representatives and one Toko Giken 
representative. Toko Giken is a privately held Japanese company, controlled by 
the founder’s family. It currently holds 29.2% shares of Vertex Standard. 

Mr. Jun Hasegawa (my boss), son of Sato Hasegawa JA1MP, the founder of Yaesu 
will continue to take part in the management of Vertex Standard in his 
capacity as the Representative Director, President and CEO of Vertex Standard after 
the Tender Offer. The day-to-day management of the joint venture will be the 
responsibility of Mr. Hasegawa and his senior leadership team, who are also 
expected to continue. Count me as one of those who will continue with Yaesu. 
Our business will continue to be operated as is, and we will continue to 
actively develop new products and operate the business as a leading manufacturer 
of amateur radio, marine, land mobile, and airband radios. 

The Vertex Standard brand of equipment (Standard brand in Japan) will 
continue to exist. The current Vertex Standard brand strategies are highly respected 
by Motorola and will be continued. Since Motorola appreciates our Yaesu brand 
strategy, there will be no change to it. 
There will NOT be a Motorola brand of Amateur Radio equipment replacing or 
competing with Yaesu. 

Yaesu customers can expect to see positive benefit from the fact that: 
Vertex Standard has an experienced engineering team that, combined with 
Motorola's extensive engineering talent, will develop new innovative products. 
Personally, I cannot wait to see what this joint engineering effort will bring to 
Amateur Radio! 

Cost synergies will be realized through the use of Motorola's buying power to 
reduce the joint venture's costs for raw materials. Hams are known to enjoy 
seeking out the best buy for their hard earned money - expect to see Yaesu 
products remain highly competitive and providing excellent value for your 
investment. 

Because Mr. Hasegawa will continue to manage the day-to-day operations of 
Vertex Standard, we do not expect to see changes in the existing Yaesu 
dealership, pricing and rebate philosophies as a result of the joint venture. 

These are historic exciting times for Yaesu, our customers, and Amateur 
Radio. The future is bright and the potential for incredible technological 
advancements for Amateur Radio are immense. We are glad you will be there with us as 
the positive affects of the Vertex Standard / Motorola joint venture unfolds. 

73, 
Dennis Motschenbacher K7BV 
k7bv at vxstdusa. com



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