NTN: Capital Participation Into Renault's Subsidiary SNR NTN has executed a definitive agreement dated 24th of July, 2006 (French time) with RENAULT regarding a phased acquisition consisting a capital participation (35%) into SNR Roulements (SNR) which is a wholly owned subsidiary of RENAULT, acquiring total 51% of SNR's shares 1 year after the initial closing, and acquiring total 80% shares within a target period after the 3rd anniversary date until the 5th anniversary date of the closing. 1.Aim of the Capital Participation into SNR (1) NTN and RENAULT established a joint venture in France in 1998 for manufacturing Constant Velocity Joints (CVJ), automotive power-train parts, and have built up a reliable relationship and cooperative system in the long term. NTN aims to expand this existing solid partnership in CVJ business with RENAULT into bearing business, too. (2) By acquiring SNR's shares, being No.1 in France with respect to sales and one of the leading bearing manufacturers worldwide, NTN aims to integrate technical strength, production and market development capabilities of both NTN and SNR, to reinforce business structures and improve its presence especially in European market.