Joint FDB Unit Venture Temporarily Postponed

NTN Corporation (NTN) has decided after due consaltation with Nidec Corporation (Nidec) to temporarily postpone establishment of the joint manufacturing venture with Nidec announced last November and commencement of manufacturing in the Philippines originally scheduled for April 2002.
The joint venture aims to launch a business in sintered-alloy Fluid Dynamic Bearing (FDB) Units for HDD motors. NTN has also decided to postpone production of sintered-alloy hydrodynamic bearings at a 100% NTN owned subsidiary in Thailand.

The temporary postponement is due to the acceleration of a major customer's production schedule and the resultant decision to use an existing Nidec FDB instead of the new FDB Unit.
In consideration of the FDB Unit's cost competitiveness and manufacturability and the fact that other major customers are already considering its adoption, NTN and Nidec intend to proceed with the joint venture and will act swiftly to select a suitable production site.

We do not anticipate any negative impact on business results for the fiscal year ending March 31, 2002.