OREANDA-NEWS. AUTOBACS SEVEN Co., Ltd. announced that respective approval orders (the “Approval Orders”) were entered by the United States Bankruptcy Court for the District of Delaware and the United States Bankruptcy Court for the District of New Jersey (collectively, the “Courts”) on April 23, 2013 (North American Eastern Standard Time) with respect to the settlement agreement (the “Settlement Agreement”), the execution of which the Company announced in the press release “AUTOBACS SEVEN Announces Resolution of Damages Lawsuits through Settlement” on March 30, 2013, and the Settlement Agreement came into effect as of May 8, 2013 (North American Eastern Standard Time).

As we mentioned in the press releases “Notice concerning filing of a lawsuit against AUTOBACS SEVEN” dated December 12, 2009 and “Notice concerning filing of a lawsuit against AUTOBACS SEVEN” dated December 19, 2009, AUTOBACS STRAUSS INC.; 1945 Route 23 Associates, Inc.; and R&S Parts and Service, Inc. (collectively, the “Plaintiffs”) filed respective lawsuits against the Company in the United States Bankruptcy Court for the District of Delaware on December 11, 2009 and in the United States District Court for the District of New Jersey on December 17, 2009. The Company executed the Settlement Agreement with the Plaintiffs as of March 29, 2013 (North American Eastern Standard Time), as announced in the press release “AUTOBACS SEVEN Announces Resolution of Damages Lawsuits through Settlement” on March 30, 2013.

As the effectuation of the Settlement Agreement was subject to the entrance of the Approval Orders, the Settlement Agreement came into effect on May 8, 2013 (North American Eastern Standard Time), a day following the day on which the Approval Orders became final after 14 calendar days had passed since the Courts entered into the Approval Orders on April 23, 2013 (North American Eastern Standard Time).

The Company expects that cash payment, etc., to be made through this settlement will have no material impact on its consolidated financial results for the fiscal year ended March 31, 2013 and the fiscal year ending March 31, 2014. The Company posted a non-operating income of 109 million yen for the fiscal year ended March 31, 2013, which is equivalent to the difference between the amount of the payment made to the plaintiffs through this settlement and the estimated losses that were reserved for the withdrawal of its business from North America.