70MW Solar Power Plant In Japan

Kyocera Corporation, IHI Corporation and Mizuho Corporate
Bank. announced that the three companies have reached a basic agreement to
construct a 70-megawatt (MW) solar power plant in southern Japan and to further
explore a business model for utility-scale solar power generation. The
"mega-solar plant" is being built to help solve Japan's power supply issues
caused by the effects of the Great East Japan Earthquake, and to make a
contribution to environmental protection, including the reduction of CO2 emissions.

To be built in Kagoshima City (Kagoshima Prefecture), the
solar power project is being undertaken by combining the strengths of the three
companies: Kyocera utilizing its more than 35 years of experience in the solar
business; IHI implementing its proactive stance on promoting the increased use
of renewable energy; and Mizuho CB applying its wide-ranging finance knowledge.

Within the agreement, the Kyocera Group will be
responsible for the supply of 100% of the solar modules and part of the
construction & maintenance of the system; IHI will lease the land and
actively participate in the operation of the project; and Mizuho CB will devise
a financing plan for the project. Furthermore, a special-purpose company will
be established to undertake the business operation of the mega-solar plant,
with Kyocera planning to become the largest shareholder. In the process of
exploring the feasibility of the new business, Kyocera and IHI have enlisted
the support of and plan to get cooperation for investment in the
special-purpose company from KDDI Corporation; Kyudenko Corporation; Kagoshima
Bank, Ltd.; Takenaka Corporation and others.

With the cooperation of the Kagoshima prefectural and
municipal governments and others in the local area, the companies seek to both
revitalize the local area, and through the spread of renewable energy use, to
contribute to the preservation of the environment and the advancement of
society.

The planned site of the solar power plant is
approximately 1,270,000m2 (approx. 314 acres) of land owned by IHI "”
roughly the same area as 27 baseball stadiums. The total project cost is
estimated at approximately 25 billion yen, with construction to commence in
July of this year.

Plans for the plant include exclusive use of
approximately 290,000 Kyocera multicrystalline solar modules, with a total
capacity of 70MW, becoming the largest officially announced solar power plant
in Japan. The planned 70MW of solar power generation is equal to almost 40% of
the total amount of public/industrial-use solar power equipment shipped
domestically in CY2011. The approximately 79,000MWh of annual electricity
generated will provide the equivalent power for roughly 22,000 average
households, and will help to offset roughly 25,000 tons of CO2 per year.

Expectations and interest in solar energy have heightened
to a new level in Japan with the planned July 1 start of a revamped feed-in
tariff (FIT) program and the need to resolve power supply issues caused by the
effects of the Great East Japan Earthquake. Under these circumstances the three
companies have reached this basic agreement as they believe that it is their
corporate responsibility to proactively tackle environmental problems.