Establishment of NSK China Sales Co. Ltd.

NSK (China) Investment Co. Ltd.¡¯s (NSK China) Chairman, Shinichiro Takahashi, formally announced on August 22, 2005, the establishment of NSK China Sales Co. Ltd. Approval for this new venture was received on May 30, 2005 from the Chinese authorities. Beginning October 2005, this new company will begin direct sales of bearings and other bearing components to the Chinese market out of its Shanghai office. NSK China Sales Co. will be the first sales office established by a foreign bearing manufacturer and marks NSK Ltd.¡¯s commitment expanding its presence in China. With the establishment of the sales office, NSK China will have the manufacturing and sales capabilities to respond to the increasingly sophisticated needs of the Chinese automotive and industrial machinery markets. Sales are expected to reach ¥1.2 billion in the first year of operations.