THK 2006 Toward Further Growth(Pic)

THK is expanding its business sphere, pursuing both global expansion and new areas of business, in an effort to achieve the long-term business objective of ¥300 billion in consolidated net sales for fiscal 2010. In pursuit of global expansion, we have built up production and sales systems encompassing Japan , the rest of Asia , Europe , and the United States . This year, we will be operating the THK Liaoning plant, our second facility in China producing LM guides. We will also augment our sales network, making it possible to rapidly and accurately provide products to the Chinese market, which is expected to expand in the future. In pursuit of expansion into new areas of business, we will seize opportunities that arise in accordance with full-scale entry into the automotive electronics market through our FAI Group. We will speed up product development and increase our productivity to a globally competitive level. President and C.E.O. Akihiro Teramachi In addition, we have built a new plant at our Gifu facility and established a new production system for seismic isolators, which are becoming increasingly attractive through the efforts of our ACE Group. This year we will actively increase our sales efforts to create new and larger demand for our THK products. In 2006 the global economy is expected to perform steadily, although the growth rate may subside in comparison to 2004 and 2005. Despite this, THK will continue to tirelessly pursue reforms despite any external conditions we face and move resolutely ahead toward further growth. We ask for your guidance and support in the year ahead and offer our very best wishes for the new year. President and C.E.O. Akihiro Teramachi