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Keko Equipment NEWSLETTERNO. 1 JUNE 2002

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INTRODUCTION OF THE NEW FACTORY

The Keko Equipment company in Žužemberk and its new look.

The showroom allows the demonstration and testingof our equipment.

Growing manufacturing and promotional demands ledto the construction of our new office and manufacturingcomplex. The new facility has enabled us to expand oursupply network and improve the services to our custom-ers. The expanded developmental premises will enableus to develop new technological solutions faster andbetter. Our new machine assembly area help us to bet-ter organize the work allowing us to embark on largerprojects. Customers will be able to witness the perfor-mance of our equipment in the renovated machine test-ing facility, further improving our cooperation with them.

Our demonstration center will allow us to effectively dem-onstrate new development methods and the operationof our machines. Our computer-supported warehousingcontrol system will minimize delivery times and ensurean efficient supply of spare parts.

Following our successful breakthrough into the globalmarket, we expect our new facilities will help us acceler-ate the company’s growth and enable us to strengthenthe excellent reputation we have acquired over the years.

The new machine assembly facility will allow us tocomplete larger projects.

“The world is a crossroad of potential and ambition. Whenexperience and courage seek development, the path tothe future unfolds”.The official opening of our new offices and manufactur-ing facility is a turning point on the path of developmentthat we have been following for years. Knowledge andinnovation reveal new dimensions and our vision of the

future is coming into focus. We are creating a new im-age and everything we’ve been longing to realize is nowmaterializing. With each new goal we set, we continueto look for solutions and your satisfaction will be a mea-surement of our success. Knowledge, experience andclose cooperation with our agents are the engines of ourjoint future.

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The new equipment and facility for spare partmanufacture.

REPORT FROM THE OPENING CEREMONY

The expanded design area enables new developmentsolutions.

On Friday May 24 more than a hundred guests,who in one way or another had contributed torealize the goal we’ve set, gathered at the open-ing ceremony of Keko Equipment’s new facility inŽužemberk, Slovenia. Employees, former employ-ees, local business partners, municipal function-aries, as well as several foreign guests were partof the audience that enjoyed a multimedia pre-sentation of Keko Equipment’s new facilities.

A short greeting and speech by the companies’directors, Mr. Tone Konda and Mr. Jože Štuparfollowed the presentation. They thanked every-one who had contributed to the successful andfast completion of the company’s project. At thesame time they both emphasized that Keko Equip-ment, its manufacturing of high-quality machinesand the widespread network of sales agents en-joy an excellent reputation worldwide.

Plaques were presented to four companies thathelped Keko Equipment strengthen its courseand realize its vision: to Miss Christine Seo, rep-resenting AMC Korea, for successful coopera-tion and to Mr. Roderik Höppener and Mr. DanielVaisman, representatives of Haiku Tech, Inc., for

In the interplay of time and space opportunities and coincidences meet. At this juncture theintermingling of knowledge and vision pursues happiness. When experience and boldness look

out for development, a path opens into the future.

promotional activities on the European and American markets.The foreign guests praised the new premises and expressedtheir conviction that more shared goals will be realized in thefuture through mutual cooperation. Masses Well of Taiwan, whichperformed particularly well on the Taiwanese market in 1999,was also rewarded for long-term cooperation. Unfortunately rep-resentatives from this company were unable to join us for theceremony, as was also true for representatives of the fourth

The well-known Slovenian TV presenter Tajda Lekšeanchoring the opening ceremony in two languages.

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award winning company, Skymos of Hong Kong. Theyhelped Keko Equipment enter the Chinese market andhas continuously cooperated with us ever since. After aguided tour of the manufacturing and office facilitiesguests were treated to a meal accompanied by musicand an invitation to tour a nearby wine cellar.

In short, the opening ceremony was a unique opportu-nity for participants to exchange experiences and opin-ions on domestic and foreign business.

Boris Jordan, director of Kekon“I think that Keko Equipment hasachieved excellent business resultsworldwide over the last five years,something that very few Sloveniancompanies have managed to do. Astrong know-how and developmenttradition has been present in thecompany for many years and has un-doubtedly contributed to thecompany’s current success. As weare “neighbors” and Keko customersourselves, the new premises will bevery beneficial to our company, espe-cially in terms of access to the show-room and new equipment, which willbe further developed in the future aswell as the opportunity to enjoypersonal contact with the people whoinvest their knowledge into the tech-nological development that we alldepend on”.

Janez Orel, employee at themachine assembly department atKeko Equipment“I’ve been with the company since mytraining days, when we still workedat the old Iskra. A great deal haschanged since then; the work todayis much cleaner and much more de-manding too. Despite being a smallcompany, it’s very pleasant workingin a team where everyone is friendlyand on good terms with each other.The quality and organization of workhas also improved and any problemsthat arise during the work processare rapidly solved through immediatefeedback from co-workers.”

Emeran Praznik, retired workerand long-term former employee“I remember how we used to work atthe old square in Žužemberk, whereI was employed as a maintenanceman. The women used to do all theirwork by hand at the time. One day in1962 Mr. Konda senior asked me togo to Iskra Šentjernej and look at astamping machine. When I returnedhe asked me if I was capable of con-structing such a machine by myself.The only equipment available to mewas an electric drilling machine, butthat didn’t stop me. And I got a bonusfor my work, which exceeded my pay-check by a quarter. From that day onI proudly worked as a “developer”.Those were the days!”

Experience, written in people and daring, based on concord, makes the objectives clear.

The FakeOrchestra jazz

ensemble createda pleasant

atmosphere.

Opening speech by Tone Konda, general manager.

Technical director Jože Štupar expressed his satis-faction at the opening of the new premises.

GUESTS’ COMMENTS

Guests in the showroom during a guided tour.

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Marko Ušaj, architect“My goal was to construct a building thatwould blend in with this environment,meaning that it would unite the featuresof the Dolenjska region and Slovenia asa whole. The right combination of mate-rial and design was necessary in orderto construct an authentic whole, not tomention taking into account the purposeof the facility. I think we managed toachieve this common goal.”

Viktor Hrovat, construction siteforeman at Begrad, the contractingcompany“Construction began in June 2001 andit was originally planned that they wouldbe completed by December. However,because of problems with the founda-tions, we, together with the managementof Keko, decided to build a cellar underthe entire building. Due to the demand-ing nature of the works, constructionextended into February of this year de-spite the presence of 20 to 25 workerson the site at any one time. I do, how-ever, have to state, that the employeesof Keko were a great help, contributingsignificantly to the rapid completion ofconstruction.”

Franc Škufca, Mayor of Žužemberk“As a businessman, politician and some-one well aware of the conditions in thisarea, I feel that economic investmentsare indispensable, since this is the onlyway the region can survive and enableour skilled workers to find employmentin their own region. Active economic ac-tivities enable money to come back intothe community. The success of KekoEquipment is also extremely importantto our community, because Žužemberkis becoming more and more visible, notsolely in the area of tourism. We hopethat such events will help us to improveconnections with other parts of Sloveniaas well.”

Drago Črnič, Iskra Semič “I’ve been working together with Kekofor almost six years now. We are busi-ness partners and sometimes receiveorders from Keko Equipment, as wework in the same field. We have excel-lent experiences with them, as they area very professional and consistent part-

ner. They continue to surprise us withtheir development, both in the fieldsof design as well as marketing. I amconvinced that their advancement inknowledge, production quality andnew premises will continue to bringthem excellent business results in thefuture.”

Peter Bavdek, Keko Equipmentemployee“As I’ve been following the history ofthe company since 1965, I must saythat we have advanced considerablyover the years. The renovated pre-mises will enable us to give tours toour customers with pride, show themour production line, equipment andgive them the chance to see the qual-ity of our products for themselves. Asan employee concerned with produc-tion, I would like to emphasize the newworking conditions, since cleanlinessis of utmost importance when itcomes to the production of suchhighly sensitive machines. Our newpremises will thus make our ma-chines even more reliable.”

Darja Zaletel, Keko Equipment,purchasing and records“I’ve been with Keko Equipment for thepast two and a half years and I mustsay that I am very satisfied. The workis never boring since I come into con-tact with customers from all over theworld. There is a great atmospherewithin the team as well, so the work-day passes very quickly. Our new ac-quisitions will bring us even greaterrespect and open up new businesspossibilities.”

Marta Konda, Keko Equipmentoffice manager“I am very happy today, since it com-pletes a six-year period of construc-tion. I feel that new markets will beopening to us in the future, especiallyif we continue to successfully collabo-rate with our worldwide agents. Thisis the only way to break through onforeign markets. And we’ve managedto do just that with their help.”

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INTERVIEW WITH THE DIRECTORS OF KEKO EQUIPMENT,TONE KONDA AND JOŽE ŠTUPAR

company to manufacture high-quality products that arecapable of penetrating the market. If the product is “right”you will be welcomed everywhere with open arms. At themoment we are pretty strong on the Asian market,especially Korea, Japan, Taiwan and China, where we dealwith companies from small to the largest names in theindustry. Our established sales network in Europe allowsus to concern ourselves more with breaking into theAmerican market.”

Keko Equipment is a global company operating onglobal markets. This is made possible with a networkof agents, located in various countries. I would liketo know how you built this network of agents andhow you cooperate with them?

Konda: “Due to the weak market situation and thebreakdown of Eastern European markets, including ourindependence from the former Yugoslavia, we found itnecessary to find substitute markets and new customersfor our machines. We were well aware of the fact thatour products are competitive and with a little luck, whichis just as necessary in the business world as it iselsewhere, we found new sales channels and managedto position our products on the new marketssuccessfully.”

Štupar: “The equipment, or rather machines that we

The grand opening of the new premises is upon usand I would like to know why a new factory and whocame up with the idea of constructing it?

Konda: “The basic idea for the expansion and the buildingof the new premises came from our sales requirements.These came up with the introduction of our new productsand the influx of new customers. The existinginfrastructure was not adequate for the development ofnew technological solutions, and demand exceeded ourexisting production capacities. I would also like to addour promotional problem, concerning the optimal methodof demonstrating our technological solutions to potentialcustomers. Up until the renovation we did not have anadequately equipped showroom, where this sort of thingcould be carried out.”

Žužemberk and the wider Slovenian region remain arelatively small and closed market, while your salesnetwork expands over three continents, fromEurope, to Asia and America. How do you manage tokeep going and to coordinate your business dealingsin such far away markets?

Štupar: “The only way to deal with such a widespreadmarket is through a network of agents who coordinatebusiness in various countries. Slovenia is still relativelyunknown overseas and this is the only way for a Slovenian

General manager Mr. ToneKonda

Technical director Mr. JožeŠtupar

7The world of the people and the world of the objects. The path written in the ending. The knowledge preserved in the product.

manufacture are very specialized and thus demand aspecific market approach. Customers must trust you,know who you are, where to find you and who to turn towhen they are faced with a particular problem. We thusdecided to build a network of agents. These are mostlylocal companies, already present on their local marketsand well acquainted with the language and customs ofour customers there. They represent the mainconnection between the company and the customers.Sometimes we organize things together, hold regularmeetings, cooperate at various fairs, expositions, etc.”

What are the advantages of the machines youmanufacture and the company’s other competitiveadvantages in comparison to your competitors inthis field?

Konda: “Our main competitors are in Japan, USA, Canadaand of course Taiwan. If we compare Keko Equipment tothe competition from these regions, I believe one of ourbig advantages is the fact that we have a complete andfully integrated product range. We thus provide ourcustomers with a package of solutions, including know-how and assurance that the equipment will functioneffectively. The customer perceives a certain degree ofsafety and trust since we start to build on long-termcooperation between the supplier and the customer. Weare relatively small but at the same time focused on

individual customers and their demands. Please allowme to mention our “custom-made” production line, whichfacilitates the development of specific technologicalsolutions in a short period of time. Our equipment isproven in practice, which means that our products havean additional guaranteed advantage. We also respondto our customer’s demands fast and without delay.

Štupar: “I would just like to add that our customersreceive guaranteed value for their money, something thatthey expect from the equipment they buy.”

What are your goals for the future?

Konda: “The new image we’ve built for ourselves providesus with more penetrative promotion and more effectivesales routes. Our desire is to maintain the satisfactionand the market share we’ve acquired on our existingmarkets and to attempt to widen our circle of customerson the Japanese and American markets. We will thengradually turn to new components and look for newsolutions. We are aware of the fact that in view of thestrong competition we must never rest on our pastsuccess. That is why we will try to continue to sell ourknowledge successfully and to maintain the excellentreputation we’ve acquired.”

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INTERVIEW WITH REPRESENTATIVES OF THEPRIZEWINNING COMPANIES,

AMC Korea AND HAIKU TECH Inc.

Miss Christine Seo, acting onbehalf of AMC Korea, received

acknowledgements for successfulcooperation in the promotion of

Keko Equipment’s machines on theKorean market in the year 2000.

The limits of theobjective aredefined by themeans that lead toit. The startingpoint is a dot, thegoal is the entireworld.

You’ve been working with KekoEquipment for quite a while now.How satisfied are you with thiscollaboration?

“We really enjoy working with KekoEquipment at AMC, since thecompany is always fast and reliable,a characteristic that satisfies ourcustomers as well. Whenever wecome across a problem, KekoEquipment is always willing to help usand we try to find an adequatesolution together.”

In 2000 your company was KekoEquipment’s most successfulagent, which means that youattained a very high percentage ofsales. What in your opinion is thereason for that successfulbusiness year?

“That was a boom year. A lot ofcompanies were expanding andinvesting in new equipment. Despitethe fact that the machinesmanufactured by Keko Equipmentare very complex, their price at thetime was very competitive and manycompanies decided to purchasethem. Our company had a prettygood reputation at the time, but withour increase of promotional activitiessales of Keko’s machines rocketed.”

Can a Slovenian company competeat an equal level with othercompanies on the Asian market?What are the competitiveadvantages of Keko Equipment?

“Keko Equipment has a strongreputation both in Korea and inChina, since their business approachon the market is very flexible. Theirrapid response is surprising, sincethey are always fast and reliable.They are very customer friendly andthey in turn trust the company andbuy its products.”

With the opening of the newproduction and business complex,new doors are opening up to KekoEquipment. What does AMCexpect from the collaborationbetween the two companies in thefuture?

“I agree, with its new acquisitions,Keko Equipment will find business inthe future easier and better. We onthe other hand will try to f indproducts suitable for customers inour country. In spite of the fact thatthe situation on our market has seensomewhat of a downturn, we hopethat we can repeat the success fromthe year 2000 soon.”

Miss Christine Seo

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Acknowledgements were presented to Haiku Tech Inc. for long-termsuccessful collaboration on the European and American market. Diplomaswere awarded to general manager Roderik Hoppener and Daniel Vaismanfrom Miami.

When and how did you chooseKeko Equipment as your strategicpartner?

Mr. Vaisman: “An American companywith headquarters in Miami signeda contract with Keko Equipmentalmost four years ago. We decidedon the partnership one reason aboveall. That is the exceptional quality ofthe machines developed by KekoEquipment. Our general manager Mr.Hoppener, who has traveled aroundthe world extensively in search of newcontacts, can confirm this. He cameto the conclusion that KekoEquipment is the top-of-the-rangewhen it comes to the manufactureof machines for the production ofceramic components. We are stillconvinced of that today.”

You attribute great significanceto the showroom. Consideringyour experience, what are the keyadvantages provided by ashowroom?

Mr. Hoppener: “If we place ourselvesin the role of the customer itbecomes clear that when making apurchase, the customer would like tobe 100 % sure that he is getting theright machine that gets the job done.A showroom allows the machines tobe demonstrated and fully tested

with customers’ own materials.Thecustomer can thus see forhimself how the equipment works,before deciding whether or not tomake the purchase. The directcontact that evolves between thecustomer and the company duringsuch demonstrations also has agreat influence on purchasingdecisions, future cooperation, andfurther joint development. With thenew showrooms in Miami, USA andhere in Slovenia we foresee a majorimprovement of our relationshipswith existing and potentialcustomers, guaranteeing oursuccess in the future”

How do you interact with yourcustomers and what is the role ofpost sales performance?

Mr.Vaisman: “We like to think of ourcustomers as customers for life.Most of the customers that we havedeveloped for Keko will be for the longterm. The advantage of KekoEquipment is the tailor-made abilityof each machine to that customer’sspecific needs. We are sellingsomething that must be maintained,kept up. Technology is a continuousflow of ideas and development thatcustomers will include in theirproduction. With continuousrelations we insure that they are

following the development. But alsothe needs change and we enable thecustomer to maintain thesechanges. We’re the eyes and earsof Keko Equipment for the US,Canadian and Latin Americanmarkets. We listen to what the clientsays.”

What are your expectations ofKeko in the future in terms oftechnological and promotionaladvancements, which have beenmade at Keko Equipment? Whatadvantages does Keko Equipmentprovide to your company?

Mr. Hoppener: “The new factory builtby Keko Equipment was urgentlyneeded. Keko Equipment grew froma small “workshop” and built theimage of a modern company andreliable partner. Consequently thecompany will find it now easier toprovide quality products and rapiddelivery to the distant Americanmarket. As far as the Europeanmarket is concerned, the mostimportant thing is a showroomwhere German, English and Frenchcustomers can convince themselvesof the effectiveness and possibilitiesprovided by Keko’s machines. This isthe only image for Keko Equipment ifwe want to really break through intonew markets.”

Mr. Daniel Vaisman Mr. Roderik Hoppener

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NEW PRODUCTS

Ceramic tape caster for Mylar model CAM-M1

The CAM M1 tape caster is designed and built to meetthe most stringent customer demands. A need for higherautomation levels and higher accuracy led to this trulyinnovative caster. The automated continuous slurry dos-age can be performed through a slotted die system thatallows a +/-10 micrometer slurry level height. The CAM-M1 presents our new innovative generation of castersthat feature fully automatic casting gap control, with autozero calibration. On a touch screen you can monitor theprocess continuously. Using preset menus you can quicklystart up a new casting run under exactly the rightconditions, while easy adjustments are continuously pos-sible. An auto tracking system assures a perfectly woundcarrier and ceramic tape. The system has numeroussafety features that allow safe operation when utilizingflammable solvents. The counter flow filtered hot air dryercan be compartmentalized to fine-tune the exact condi-tions needed for high productivity of perfect tapes. If yourtape systems require additional modification of the cast-ing equipment, we will test your system with you andadapt it according to your requirements.

The whole world as the crossroads of potentials and ambitions.

P-200A- Servo motor driven squeegee assembly- Servo motor driven printing table- Stepper motor adjustable printing table (x, y, theta)- Stepper motor automatic/programmable snap off adjust-

ment- Pneumatically screen fixing- All printing parameters programmable via control panel- Two video cameras for precise table alignment- Fully covered printing area- PLC control ( Call/Save 99 programs)

Multi-purpose screen printer P-200

This multi-purpose unit is used in the electronics indus-try and represents a new approach in two new fieldsother than the manufacture of passive components. Witha proven design, high accuracy and flexibility, the P 200has been designed for diverse and precise screen-print-ing applications in electronic components’ manufactur-ing such as LTCC, MLCC, chip inductor, hybrids and otherprinted circuits, etc. Two models are available, both basedon a similar mechanical principle. The P200S is an en-try-level, affordable unit for less demanding applicationswith fewer possibilities for additional equipment. For de-manding users the full-featured P200A offers an exten-sive range of options for demanding advanced technol-ogy applications.All printing parameters are fully programmable and canbe set from a control panel, which allows for rapid startupof the unit with new parameters.

P-200S- AC Motor driven squeegee assembly- Pneumatically driven vacuum printing table with shock ab-

sorbers.- Micrometers screws adjustable printing table (x, y, theta)- Manual adjustable snap off distance- Fully covered printing head- PLC control

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Printing Stacking machine for the smallest chip size

The unit we have developed represents a new genera-tion in the development of precise stacking and printingmachines. It was built on the basis of our proven PAL 9model and is intended for the precise stacking of ferriteor ceramic foils using the “roll to roll” system. The unit isprimarily designed for stacking and printing chip ferrites,however, the basic principle can be used to produce mostpassive components where high stacking accuracy isrequired. The unique principle of placing the foil on posi-tioning pins allows for the manufacture of componentsas small as 0201’s (0.5 mm x 0.25 mm). The unit canbe offered with several printers and stacking stations. Itis completely automated and it has been designed to beoperated by a single person. The productivity on this unitand the stacking accuracy is significantly higher than thatof comparable systems in used today for the manufac-ture of chip ferrites. This is the first unit in the marketfor the production of 0201 chip ferrites.

HIGHLIGHTS

IMAPS 2001, Baltimore, Maryland, USA

PRODUCTRONICA 2001, Munich, Germany

CARTS 2002, New Orleans, Lousiana, USA

ACERS 2002, Saint Louis, Missouri, USA

NEPCON 2002, Shanghai, China

NEW SHOWROOM INMIAMI, Florida, USA

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Directions of time and space are joining beyond all limits.

KEKO EQUIPMENT LTD. – COMPANY PROFILE

KEKO Equipment Ltd. is a leader in the manufacture ofmachines for the production of multilayer passive ceramiccomponents.

Twenty-five years of experience have given us the vast knowledgethat is now marketed under our own brand in the Asian, Europeanand American markets.

Our roots stretch a long way back to when we were a unit of theIskra consortium. Since 1995the company is in private handsand its philosophy today isformulated by a team of highlymotivated engineers anddesigners. In addition to the ex-tensive range of provenproducts, we focus our special-ized know-how into custommanufacturing.

In the development of specializedtechnological solutions we takeinto account our customersrequirements and the needs ofeach individual buyer, thus

providing the basis for a successful long-term relationship.

This is aided by our widespread sales network that spans threecontinents, where we always cooperate closely withknowledgeable local agents. They have helped us to provide verysuccessful post-sales services and ensure customer satisfaction.

Knowledge, flexibility and innovation are our company’s keycompetitive advantages and our brand name’s good reputationnow reaches all over the world.

KEKO EQUIPMENT, d.o.o.Grajski trg 158360 ŽužemberkSlovenia, Europetel: +386 7 388 52 00fax: +386 7 388 52 03e-mail: kekoequipment@siol.netwww.keko-equipment.com

Production: Studio Virc, Print: Tiskarna Novo mesto, June 2002