THK has received official approval to establish a holding company in Dalian City, Liaoning Province, China, as described below.

1. Reason for Establishment

With the expansion of THK’s business in China, we have established a holding company there to enhance our sales force and management, to speed up decision making, and to improve efficiency by centralizing control of the overlapping functions of the companies under it.

2. Outline of the New Company

Name: 蒂業技凱（中国）投資有限公司
THK (CHINA) CO., LTD.
Representative: Akihiro Teramachi, Chairman (also THK’s President & CEO)
Location: Dalian Economic and Technology Development Area, Dalian
City, Liaoning Province, China

Date of Incorporation: September 26, 2005

Description of Business: Enhancement of functions to supervise business in China, and of functions for sales and procurement, and other businesses

Accounting Termend:
December
Number of Employees: Not yet determined
Initial Capital: US$32 million
Investment Ratio: Whollyowned
by THK (100percent
invested)

3. Future Prospects

The establishment of this company will not affect nonconsolidated
and consolidated business forecasts for this fiscal year, which ends March 2006.


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