Frequently Asked Questions on the MIO Settlement

The Court sent you this notice because you have a right to know about two proposed settlements of a class action lawsuit, and about all of your options, before the Court decides whether to approve the settlements. If the Court approves the settlements and the plan of allocation and after objections and appeals are resolved, an administrator appointed by the Court will make the payments that the settlements allow. You will be informed of the progress of the settlements.

This package explains the lawsuit, the settlements, your legal rights, what benefits are available, who is eligible for them, and how to get them.

The Court in charge of the case is the United States District Court for the Northern District of California, and the case is known as Quantegy Recording Solutions, LLC, et al. v. Toda Kogyo Corp., et al., Case No. C-02-1611 (PJH). The people who sued are called Plaintiffs, and the companies they sued are called the Defendants.

2. What is this lawsuit about?

The lawsuit claimed that the Defendants fixed the prices of MIO they sold. No trial has occurred, and the Court has not determined whether the Defendants are liable. The Defendants are Titan Kogyo Kabushiki Kaisha; Toda Kogyo Corporation; Toda America, Inc.; Ishihara Sangyo Kaisha, Ltd., and its wholly-owned affiliated or controlled subsidiaries ISK Americas Incorporated, ISK Magnetics, Inc., and Ishihara Corporation (USA); Sakai Chemical Industry Co., Ltd.; Sakai Trading Co., Ltd.; and Sakai Trading New York, Inc.

3. Why is this a class action?

In a class action, one or more people called Class Representatives (in this case, Quantegy Recording Solutions, LLC; and eMag Solutions LLC), sue on behalf of people who have similar claims. All these people are a Class or Class Members. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. U.S. District Judge Phyllis J. Hamilton is in charge of this class action.

4. Why are there settlements?

The Court did not decide in favor of Plaintiffs or Defendants. Plaintiffs have settled with Titan and Toda. The Plaintiffs think they could have won if they had to go to trial against Titan and Toda. Titan and Toda think the Plaintiffs would not have won anything from a trial against them. But there has been no trial. Instead, Titan and Toda and the Plaintiffs agreed to two separate settlements. That way, they avoid the cost of a trial against Titan and Toda, and the MIO buyers will get the benefits of the settlement. The Class Representatives and the attorneys think the settlement is best for all Class Members. Plaintiffs have previously settled with Defendants Ishihara Sangyo Kaisha Ltd., and its wholly owned, affiliated, or controlled subsidiaries ISK America Incorporated, ISK Magnetics, Inc., and Ishihara Corporation (USA), and Sakai Chemical Industry Co., Ltd., Sakai Trading Co., Ltd., and Sakai Trading New York, Inc. (the "ISK/Sakai Defendants").

5. Was there a prior settlement?

Yes. In 2006, you received a similar notice regarding a settlement with the ISK/Sakai Defendants. The Settlement Administrator accepted claim forms from all class members that provided contact information. After paying attorneys' fees and costs, the Settlement Administrator distributed the entirety of the Settlement funds to class members that submitted a valid claim form. If you submitted a claim form to participate in the 2006 Settlement, with the ISK and Sakai Defendants, you still need to submit a Verification Form to participate in these Settlements. (If you have found additional MIO purchases since submitting the prior claim form, you may submit an updated claim form.)

6. Will there be more settlements?

The 2006 Notice stated that the legal case continues against Toda Kogyo Corporation; Toda America, Inc.; and Titan Kogyo Kabushiki Kaisha. These settlements resolve all claims against Titan Kogyo Kabushiki Kaisha; Toda Kogyo Corporation; and Toda America, Inc. There are no other non-settling defendants. There will not be any more settlements in this lawsuit.

WHO IS IN THE SETTLEMENTS

To see if you may receive money from these settlements, you first have to decide if you are a Class Member.

7. How do I know if I am part of the settlements?

Everyone who fits the following description is a member of the Settlement Class:

All persons, firms, corporations, partnerships, or other business entities that purchased MIO as an import to the United States, or as an export from the United States, or within the United States, directly from the Defendants, or any subsidiary or affiliate thereof, during the period beginning January 1, 1991 to October 12, 2005, and all United States located persons, firms corporations, partnerships, or other business entities who purchased MIO, manufactured outside of the United States and delivered outside of the United States directly from the Defendants or any subsidiary or affiliate thereof, during the period beginning January 1, 1991 to October 12, 2005.

8. Are there exceptions to being included?

The Class does not include the Defendants, their parents, subsidiaries, and affiliates, other manufacturers of MIO, and governmental entities.

9. I'm still not sure if I am included.

If you are still not sure whether you are included, you can ask for free help. You can call 1-888-886-8614 or visit www.mio-settlement.com for more information. Or you can fill out and return the contact form described in question 12, to see if you are included in the Class.

THE SETTLEMENT BENEFITS—WHAT YOU GET

10. What do the settlements provide?

Titan has agreed to create a $800,000 settlement fund. That fund, less any amounts the Court awards to the attorneys as fees and reimbursement of costs, will be divided among all Class Members who send in a valid claim form or Verification Form. Titan has also agreed that plaintiff Quantegy Recording Solutions, LLC may receive a $15,000 incentive award for serving as class representative out of the $800,000 settlement fund.

Toda has agreed to create a $2,000,000 settlement fund. That fund, less any amounts the Court awards to the attorneys as fees and reimbursement of costs, will be divided among all Class Members who send in a valid claim form or Verification Form.

Each Class Member who provides a valid claim form or Verification Form will be entitled to receive his or her pro rata share of the settlement funds. The claims administrator will calculate each Class Member's pro rata share by dividing each Class Member's verified purchases of MIO by the aggregate total of all verified purchases of MIO by Settlement Class Members who provide a valid claim form or Verification Form.

11. When will I get paid?

You will get paid once the Court has approved the Titan and Toda settlements and a plan of allocation to Class Members. If the proposed Titan and Toda settlements are approved by the Court, this case will end.

HOW YOU GET A PAYMENT—PROVIDING CONTACT INFORMATION TO CLASS COUNSEL

12. How can I receive updates on the distribution of settlement funds?

If you provide contact information to Class Counsel, they will inform you about the claims process and update you about any distributions. You can provide contact information by following this link and filling out the form online or printing a copy of this pdf file. If you provided contact information for the 2006 Settlement with the ISK and Sakai Defendants, you still must complete a Verification Form to verify that: (1) the MIO purchase information you provided was correct, and (2) you have not waived your legal right to participate in the Titan Settlement and/or the Toda Settlement. If you do not complete a Verification Form, you cannot participate in the Settlements.

13. What am I giving up if I stay in the Class?

Unless you exclude yourself, you are staying in the Class, and that means that you can't sue, continue to sue, or be part of any other lawsuit against Titan or Toda relating in any way to the conduct which is the subject of the legal claims in this case. It also means that all of the Court's orders will apply to you and legally bind you.

EXCLUDING YOURSELF FROM THE SETTLEMENTS

If you don't want a payment from this settlement and you want to keep the right to sue or continue to sue Titan or Toda, on your own, about the legal issues in this case, then you must take steps to get out. This is called excluding yourself—or is sometimes referred to as "opting out" of the settlement Class.

14. How do I get out of the settlements?

To exclude yourself from either or both the Titan Settlement and/or the Toda Settlement, you must send a letter by mail saying that you want to be excluded from Quantegy Recording Solutions, LLC, et al. v. Toda Kogyo Corp. Be sure to include your name, your title, your company's name, address, telephone number, and your signature. You must mail your exclusion request postmarked no later than November 21, 2006 to:

MIO Antitrust Litigation Settlement Administrator
c/o Lieff Cabraser Heimann & Bernstein, LLP
P.O. Box 2820
San Francisco, CA 94126

You can exclude yourself from the Titan Settlement, the Toda Settlement or both settlements. If you ask to be excluded, you will not get any settlement payment, and you cannot object to the settlement. You will not be legally bound by anything that happens in this lawsuit. You may be able to sue (or continue to sue) Titan and/or Toda in the future.

15. If I don't exclude myself, can I sue Titan or Toda for the same thing later?

No. Unless you exclude yourself, you give up any right to sue Titan or Toda for the claims that this settlement resolves. If you have a pending lawsuit, speak to your lawyer in that case immediately. You may need to exclude yourself from this Class to continue your own lawsuit. Remember, the exclusion deadline is November 21, 2008.

16. If I exclude myself, can I get money from these settlements?

No. If you exclude yourself, you cannot benefit from these class settlements. But you may sue, continue to sue, or be part of a different lawsuit against Titan or Toda. In deciding whether to exclude yourself, you should note that on July 20, 2005, the Court entered a Decision and Order finding that a federal statute prevents claimants who purchased MIO outside of the United States from recovering in a United States court against the Defendants in this action.

THE LAWYERS REPRESENTING YOU

17. Do I have a lawyer in this case?

The Court has approved the request of the law firms of Lieff, Cabraser, Heimann & Bernstein, LLP; Richardson Patrick Westbrook & Brickman, LLC; and the Law Offices of Joshua P. Davis, to represent you and other Class Members for purposes of these settlements. These lawyers are called Class Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.

18. How will the lawyers be paid?

Class Counsel will ask the Court to approve payment of up to 33% of the $800,000 Titan Settlement Amount and up to 33% of the $2,000,000 Toda Settlement Amount to them for attorneys' fees plus reimbursement of expenses. The fees would pay Class Counsel for investigating the facts, litigating the case, and negotiating the settlement. The Court may award less than these amounts. Titan and Toda have agreed not to oppose the requests for fees and expenses.

OBJECTING TO THE SETTLEMENTS

You can tell the Court that you don't agree with the settlement or some part of it.

19. How do I tell the Court I don't like the settlements?

If you're a Class Member, you can object to the Titan Settlement, the Toda Settlement, or both settlements if you don't like any part of them. You can give reasons why you think the Court should not approve them. The Court will consider your views. To object, you must send a letter saying that you object to the settlement with Titan and/or Toda in Quantegy Recording Solutions, LLC, et al. v. Toda Kogyo Corp. Be sure to include your name, your title, your company's name, address, telephone number, a description of your purchases of MIO that shows you are included in the Class, your signature, and the reasons you object to the settlement. Mail the objection to the address below postmarked no later than November 21, 2008:

Plaintiffs' Counsel
Joseph R. Saveri
Lieff Cabraser Heimann & Bernstein, LLP
275 Battery Street, 30th Floor
San Francisco, CA 94111

20. What's the difference between objecting and excluding?

Objecting is simply telling the Court that you don't like something about the settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you don't want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you.

THE COURT'S FAIRNESS HEARING

The Court will hold a hearing to decide whether to approve the settlement. You may attend and you may ask to speak, but you don't have to do so.

21. When and where will the Court decide whether to approve the settlements?

The Court will hold a Fairness Hearing at 9:00 a.m. on January 14, 2009, in Courtroom 3 of the United States District Court for the Northern District of California, 450 Golden Gate Avenue, San Francisco, CA 94102. At this hearing the Court will consider whether the settlements are fair, reasonable, and adequate. If there are objections, the Court will consider them. Judge Hamilton will listen to companies and people who wish to speak at the hearing. The Court may also decide how much to pay to Class Counsel. After the hearing, the Court will decide whether to approve the settlements. We do not know how long these decisions will take.

22. Do I have to come to the hearing?

No. Class Counsel will answer any questions Judge Hamilton may have. But you are welcome to come at your own expense. If you send an objection in writing, you don't have to come to Court to talk about it. As long as you mailed your written objection on time, and are included in the Class, the Court will consider it. You may also pay your own lawyer to attend, but it's not necessary that he or she do so.

23. May I speak at the hearing?

Yes, you may speak at the Fairness Hearing if you have submitted a written objection.

IF YOU DO NOTHING

24. What happens if I do nothing at all?

Unless you exclude yourself, you won't be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Titan or Toda relating in any way to the conduct which is the subject of the legal claims in this case, ever again. If you do nothing, you will be included as part of the settlement. But, you will be required to provide additional information on a Verification Form and/or Claim Form in order to obtain money from the settlement. If you do not provide that information, you'll get no money from this settlement.

If you submitted a valid claim form as part of the 2006 Settlement with the ISK and Sakai Defendants, you still must complete the attached Verification Form to verify that: (1) the MIO purchase information you provided was correct, and (2) that you have not waived your legal right to participate in the Titan Settlement and/or the Toda Settlement. Otherwise, you cannot participate in the settlements.

If you did not submit a valid claim form as part of the 2006 Settlement with the ISK and Sakai Defendants, you still must complete the attached Verification Form and a Claim Form. Otherwise, you cannot participate in the settlements.

GETTING MORE INFORMATION

25. Are there more details about the settlements?

This notice summarizes the proposed settlements. More details are set forth in the two Settlement Agreements. You can get a copy of the Titan Settlement Agreement and/or the Toda Settlement Agreement by writing to MIO Antitrust Litigation Settlement Administrator, c/o Lieff Cabraser Heimann & Bernstein, LLP, P.O. Box 2820, San Francisco, California, 94126, or by visiting the Documents page on www.mio-settlement.com.

26. How do I get more information?

You can call 1-888-886-8614 toll free; write to MIO Antitrust Litigation Settlement Administrator, c/o Lieff Cabraser Heimann & Bernstein, LLP, P.O. Box 2820, San Francisco, California, 94126, or visit the website at www.mio-settlement.com, where you will find answers to common questions about the settlement, plus other information to help you determine whether you are a Class Member and whether you are eligible for a payment.

DATE: August 8, 2008