Large-size bearing business tie-up between
NSK Ltd. and NTN Corporation

NSK Ltd. (President - Mr. Tetsuo Sekiya, “NSK”) and NTN Corporation (President - Mr. Yasunobu Suzuki, “NTN”) announced today that they have agreed to a comprehensive business tie-up of their respective large-size bearing businesses as part of their effort to improve competitiveness. The agreement will cover sales, production, and technology as well as parts procurement relating to the large-size bearing business.


1. Establishment of Joint Venture

NSK and NTN have agreed to form a joint venture that will manage their respective large-size bearing businesses, which will include raw materials and parts procurement
, production and sales.

2. Capital Participation

Ownership of the joint venture will be divided evenly between NSK and NTN, each holding 50%.

3. Outline of the business of the joint venture

Production: Work to increase manufacturing competitiveness including product quality, delivery and cost through integration and transfer of products.
Sales and Distribution: Provide large-size bearing logistic service to domestic distributors, end users and then expand to overseas business. Domestic distributors will make maximum use of Internet technology and the e-marketplace to build a new Internet network as part of the process to improve logistic efficiency.
Technology: In close cooperation with NSK and NTN, will share bearing technologies and promote combining design specifications in order to maintain worldwide competitiveness.
Procurement: Aim to achieve overall cost reductions of raw materials and parts by integrating raw materials and part specifications.

4. Future Development

This joint venture company will be established before the end of 2002. NSK and NTN aim to achieve fully operational business - handling procurement, production and sales within two years. This process will occur in steps and will be developed within the legal framework at all times.

In order to achieve this goal, NSK and NTN will set up a project team with members from each company to outline a detailed business plan for the joint venture.

NSK and NTN agreed to a business tie-up in October 1999 to promote cost competitiveness and business efficiency in the specific OEM bearing supply business. In addition, both companies have agreed to share certain proprietary technologies.