content_image/231444.jpg content_image/231426.jpg content_image/231425.jpg content_image/231424.jpg content_image/231423.jpg
## (2) Major reasons for the acquisition 

For the Group to acquire a strong sales network in the Asian region and to generate a number of expected synergies, such as efficient sales expansion of existing products by the usage of the acquired sales network, and strengthening production capacity in addition to the current production sites, especially from the product distribution perspective. 

## (3) Date of the acquisition 

A-S CHINA PLUMBING PRODUCTS Ltd. and the above (1)* 1  com- panies were acquired on July 20, 2009, the rest of the companies were acquired on July 2, 2009. 

## (4) Legal form of the acquisition and names of the companies after the acquisition 

## Legal Form of the Acquisition 

 Share acquisition by cash on hand (excluding the above (1)* 1 and (1)* 2  companies) 

## Name of the Companies after the Acquisition 

A-S CHINA PLUMBING PRODUCTS Ltd. 

A-S CHINA Co., Ltd. 

AMERICAN STANDARD JIANGMEN FITTINGS Co., Ltd. 

A-S (SHANGHAI) POTTERY Co., Ltd. 

A-S (GUANGZHOU) ENAMELWARE Co., Ltd. 

HUA MEI SANITARY WARE Co., Ltd. 

A-S (TIANJIN) POTTERY Co., Ltd. 

AMERICAN STANDARD B&K (THAILAND) PUBLIC Co., Ltd. 

IDEAL STANDARD (THAILAND) Ltd. 

CERAMIC SANITARYWARE Pte. Ltd. 

AMERICAN STANDARD VIETNAM, Inc. 

AMERICAN STANDARD KOREA, Inc. 

PT AMERICAN STANDARD INDONESIA 

AMERICAN STANDARD PHILIPPINES LIMITED, Co. 

AMERICAN STANDARD BATH&KITCHEN INDIA Pte. Ltd. 

## (5) Ownership ratios acquired 

<img src='content_image/231444.jpg'>

Note: Above ownership ratios include those owned indirectly. 

(b) Period of results of the acquired companies included in the consolidated financial statements of the Company is July 1, 2009 to December 31, 2009. 

(c) Cost of acquisition, amount of goodwill and negative goodwill, reasons for recording goodwill and negative goodwill, amortiza- tion method and amortization period of goodwill and negative goodwill: 

## Cost of acquisition 

<img src='content_image/231426.jpg'>

## Amount of goodwill and negative goodwill 

<img src='content_image/231425.jpg'>

Goodwill and negative goodwill are the sum of those incurred at each company. 

## Reasons for recording goodwill and negative goodwill 

Goodwill was recorded due to the excess earnings power in the future expected from the business development going forward including synergy effects. 

Negative goodwill was recorded due to the fair value of the net assets at the time of acquisition exceeding the acquisition costs. The difference between the two amounts is regarded as negative goodwill. 

## Amortization method and amortization period 

Goodwill and negative goodwill are being amortized over a period of five years. However, when the excess of cost over net assets of subsidiaries acquired is insignificant, the amount is charged to income when incurred. 

(d) The estimated fair values of the assets acquired and the liabili- ties assumed at the acquisition date are as follows: 

<img src='content_image/231424.jpg'>

## 4. Inventories 

Inventories at March 31, 2010 and 2009 consisted of the following: 

<img src='content_image/231423.jpg'>

