NTN Corporation (NTN) has established NTN Fukuroi Corporation to manufacture completed Constant Velocity Joints (CVJ) as well as key CVJ components in order to respond to the growing international demand for CVJs. CVJs are automotive parts used in the drive train system. 1. Goal of establishing the new company Demand for NTN's CVJs is rapidly expanding due to a growing worldwide demand for reduced noise and vibration in cars, a smoother ride and lighter vehicles. Under its vision statement of "No. 1 global market share by 2010," NTN is pouring its energies into expanding sales of CVJs with an emphasis on developments in new CVJ technology.The company currently produces over 2 million units per month, but is designing a production system to go in effect in two years that will produce around 3 million units per month. In response to this burgeoning growth in demand, NTN had increased its CVJ manufacturing bases around the world to 13 with the recent establishment of a new company in India and capital investment in Germany's IFA-Antriebstechnik GmbH (IFA-AT). NTN is adding yet another with the establishment of NTN Fukuroi Corporation in Japan. NTN Fukuroi becomes the third CVJ manufacturing base in Japan and the 14th worldwide. By producing completed CVJs and their core parts, the new company will not only help NTN respond to the rapid expansion of global demand, but will also help spread risk over the entire globe and increase the competitiveness of NTN's CVJ operations. The new plant will stress protection of the global environment. Along with the newest processing technology, the new company will aggressively incorporate wind and solar power generation. 2. Future plans Company to be established in July 2006, with production scheduled to begin in November. Sales are expected to reach 10 billion yen/year in FY2009. 3. Details of the new company (1) Name: NTN Fukuroi Coporation (2) Address: 1959 Midori, Fukuroi City, Shizuoka Prefecture (3) Business line: Manufacture and sales of completed CVJs and component parts (4) Area: 77,000m² (5) Total floor space: 17,100m²(1st floor=15,300 m² 2nd floor=1,800 m²) (6) Number of employees: approx. 150 (at the end of FY2009) (7) Capitalization: ¥ 3 billion (as of April 2007) (8) Investor: NTN 100% (9) Date established: July 13, 2006 (10) Start of Production: November 2006 General Information: NTN's CVJ operations Constant Velocity Joints (CVJ) are automotive parts that transmit the rotation of the engine to the wheels at a constant speed. They have always been installed in front-wheel drive and four-wheel drive vehicles and are now also found in rear-wheel drive vehicles when a comfortable ride is important. Furthermore, they are used not only on the driveshaft, but are now often found on propeller shafts and steering shafts. In the 40 years between 1963 (when NTN became the first company in Japan to develop CVJs) and 2003, NTN produced a total of 300 million units. That total is expected to jump to 400 million by 2007. According to in-company estimates, NTN currently holds 41 percent of the domestic market and 22 percent of the global market. With its goal of "No. 1 global market share by 2010," NTN is accelerating its progress in R&D, production and sales. NTN is emphasizing new technological developments in the reduction of size, weight and vibration. Against the background of burgeoning demand, NTN is working to increase capacity at its Thai and Chinese factories. A new plant has been established in India and preparations are currently underway to begin mass-production starting in March 2007. In Europe, meanwhile, in April 2006 NTN decided to invest in Germany's IFA-AT, which manufactures and sells CVJs for Volkswagon vehicles. With the addition of NTN Fukuroi Corporation, NTN now has CVJ-related manufacturing bases in 14 locations around the world: three in Japan, two in the United States, three in China and one in the nations of France, Germany, Thailand, India, Australia and Taiwan. NTN intends to continue expansion worldwide through production in high-demand regions and in the most appropriate location based on all factors.