NTN Invests in German Auto-parts Manufacturer(Pic)

NTN has decided to invest in IFA-Antriebstechnik GmbH ("IFA-AT"), a Constant Velocity Joint ("CVJ") subsidiary of IFA Group, which has a strong business relationship with Volkswagen Group ("VW"), the largest auto manufacturer in the European market. Aims of the purchase of IFA-AT ¡¤ IFA-AT is a CVJ manufacturer, located in Gardelegen, Germany. When VW modified its in-house manufacturing strategy to partially outsource the supply of CVJ, they have chosen IFA as their alternative supplier based on the strong personal relationship between both groups. ¡¤ Currently, the company's annual sales are approximately 6,000 Million Yen to a substantial portion generated with VW (including Audi, etc.). ¡¤ Through IFA-AT's business expansion, NTN intends to establish a tight business relationship with VW, which will, in conjunction with another CVJ Joint Venture with Renault in France, enable NTN to accelerate the growth of its CVJ business in the European market. ¡¤ Further, through this alliance with IFA Group, NTN intends to expand its business with VW on a global basis. Outline of the transaction ¡¤ NTN acquires 25% of IFA-AT's share on 20.April 2006. ¡¤ NTN will increase its share holding in IFA-AT and hold majority within few years. ¡¤ Company name: IFA-Antriebstechnik GmbH (IFA-AT) ¡¤ Business lines: Development, manufacturing, and distribution of CVJ ¡¤ Established: 2001 ¡¤ Shareholder: IFA-VG(75%), NTN(25%) ¡¤ Headquarters: Gardelegen, Germany ¡¤ Sales(FY 2005): approx. 6,000 Million Yen ¡¤ Employees(FY 2005): approx. 110 ¡¤ Company name: IFA-Maschinenbau Verwaltungsgsellschaft mbH (IFA-VG) ¡¤ Business lines: Development, manufacturing, and distribution of auto-parts such as CVJ, propeller shaft and other components ¡¤ Established: 1959 ¡¤ Shareholder: von Nathusius Family(100%) ¡¤ Headquarters: Haldensleben, Germany ¡¤ Sales(FY 2005): approx. 11,000 Million Yen Outlook of IFA-AT Logo of IFA Group [Reference: about CVJ] Constant velocity joints(CVJs) are key automotive components that transfer the rotational force of the engine to the wheels at a constant speed. With the advance of vehicles that are lighter, higher-powered and have more complex drive systems, the vehicle's NVH (noise, vibration, harshness) is an obvious problem. Because customers demand a comfortable and quiet ride, cars outfitted with CVJs that reduce NVH are greatly increasing. NTN positioned CVJ as the strategic product, to achieve long term vision :"No.1 share in the world in 2010". We develop new technology for small and light products and expand our sales over the world with Global account manager system. [Reference: about NTN business in Europe]