Nidec and NTN to Establish Joint Venture in Thailand

KYOTO, Japan, Oct. 26, 2005 (PRIMEZONE) -- Nidec Corporation ("Nidec") (NYSE:NJ) (Tokyo, Osaka Stock exchange code 6594) announced today its plan to establish a joint venture in Thailand with NTN Corporation ("NTN") to step up the production of a fluid dynamic bearing unit ("FDB unit"), the core part of the hard-disk-drive ("HDD") motor. In a move to meet today's fast-growing demand for HDD used in computers and consumer electronics, the world's HDD makers are augmenting their manufacturing capacities in the southeast Asian countries, primarily in Thailand. Given the current development, the new joint venture, tentatively named NTN-NIDEC (THAILAND) CO. LTD., is undertaking the production of FDB units to facilitate Nidec's HDD motor production in tandem with its China-based equivalence, NTN-Nidec (Zhejiang) Corporation. Currently, NTN-Nidec (Zhejiang) Corporation engages exclusively in manufacture of FDB units fitted into Nidec's 3.5-inch HDD motors, using sintered-alloy metal parts supplied by NTN's wholly-owned local subsidiary, NTN manufacturing (Thailand) Co. Ltd. NTN-NIDEC (THAILAND) CO. LTD. will be established in the Eastern Seaboard Industrial Estate, Rayong, in November 2005, with a production launch scheduled for June 2006. It plans to increase output to 9-10M units per month in or after 2009, expanding the Thailand-China combined capacity up to 15-16M units per month. Outline of the New Company: About Fluid Dynamic Bearing (FDB) Unit Quality characteristic: The FDB unit manufactured by NTN-NIDEC (THAILAND) CO. LTD. uses sintered-alloy metal parts, ensuring superb mass productivity and rotation accuracy, as well as long-term durability and low cost. The Nidec America Corporation logo can be found at: http://www.primezone.com/newsroom/prs/?pkgid=1734 (1) Company name: NTN-NIDEC (THAILAND) CO. LTD. (Tentative) (2) Description of business: Manufacture and sale of FDB units for HDD motors (3) Paid-in Capital: 1.5 billion yen (Planned) (4) Controlling share: 60% by NTN, 40% by Nidec (5) Location The Eastern Seaboard Industrial Estate, Rayong, Thailand (6) Foundation November 2005 (Planned) (7) Start of operation June 2006 (Planned) (8) Land space 21,350 m2 (Planned) (9) Floor space 11,280 m2 (Planned) (10) Total Investment 3 billion yen (Planned) (11) Production plan 3 million units/month in 2006 6 million units/month by 2008 (12) Employees 1,300 (for output capacity of 6 million units/month) CONTACT: Nidec Corporation Hiroshi Toriba Executive Director Investor Relations 81-75-935-6140 HIROSHI-TORIBA@notes.nidec.co.jp