Date: March 2004

Kayaba Industry Company Ltd, one of the world’s largest manufacturers of shock absorbers and suspension components, will now start production in China from the beginning of April at its wholly owned subsidiary, KYB Industrial Machinery (Zhenjiang) Ltd (‘KIMZ').

KIMZ was established at the end of 2002 and its production facility is located in Zhenjiang City, Jiangsu Province, 280km west of Shanghai, and covers an area of 50,400 square metres. It has the capacity to produce over 500,000 suspension struts and nearly 1 million shock absorbers a year, and expects to employ 220 staff by the end of 2004.

KIMZ has already secured suspension product business from major motor manufacturers in the region including Sino-Japanese joint ventures such as Mitsubishi, Nissan and Toyota.

- ends -

Kayaba Industry Company Ltd is Japan’s leading hydraulic components and systems manufacturer with a consolidated revenue of approximately $1.8 billion. 60% of sales are from automotive shock absorbers, and it is the world’s largest supplier of shock absorbers to vehicle manufacturers, with a 23% market share. Of the 55 million pieces manufactured each year, around 8 million are destined for the aftermarket, where worldwide it has an 8% share. In key European markets - notably France, Germany, the UK and Italy - Kayaba is making considerable in-roads and already has a market share of around 15%.

Ref: KYB02/2004