News Release

Rane NSK Steering Systems Ltd. (RNSSL) Opens Steering-Column Plant at Bawal, Haryana

• Advanced facility to produce electric power steering for global automakers in north India
• State-of-the-art technology for 3,600 square-meter plant on 2-hectare site
• Closer support for automotive customers in rapidly growing manufacturing region
• Inaugurated today by Mr. L. Ganesh, Chairman, Rane Group and Mr. M. Degawa, Director & Executive Vice President, NSK Ltd.

New Delhi, May 15, 2008: To better serve its global customers’ rapidly growing vehicle production in the Delhi region, RNSSL, one of India’s leading steering-systems makers, today inaugurated a new, state-of-the-art production plant at Bawal, Haryana, 80 kilometers southwest of the nation’s capital. Today’s occasion was marked at the plant by a ceremony led by Mr. L. Ganesh, Chairman, Rane Group and Mr. M. Degawa, Director & Executive Vice President, NSK Ltd.

RNSSL has invested Rs. 377 million (US$7.5 million) in the new world-class facility with initial annual capacity to produce 200,000 electric-power steering systems for vehicle assembly plants in the region.

“We have decided to invest in this plant keeping in line with our overall strategic growth plans”.  Mr. Ganesh told invited guests. “RNSSL will grow its chosen segments through expansion, upgraded technology & synergetic diversification.  We are also expecting sales revenue of over Rs.2 billion targeted by the year 2010-11.  This factory will act as a catalyst for our vision of “Leadership Position in Steering Column Business by 2012”.

“The key is close service to our customers in each of India’s manufacturing regions,” Mr. Degawa said. “To overcome logistics challenges and offer minute-by-minute technical support our plants must be close to the final assembly line. So this new Bawal plant will offer the kind of support our Chennai plants provide in south India.”

Completed in just eight months, the 3,600-square-meter plant offers a vast production area unobstructed by support pillars. Electricity needs have been reduced by maximizing the use of natural light and utilizing high-efficiency air-conditioning throughout the building. The plant’s state-of-the-art equipment has been built in Japan by NSK Ltd.

The 2-hectare (5 acre) site in the Bawal Industrial Area offers ample space for ambitious expansion plans. With contracts for new business already in hand, RNSSL plans several phases of additional investment.

“NSK has been associated with Rane in India since 1997,” Mr. M Degawa said. “But with this investment our partnership is reaching a new level. We are excited by the prospects in this country and confident in our relationship with Rane. I believe we are poised to achieve our vision to become India’s market leader in steering. Watch us grow!”

Overview of Bawal Plant

• Location: 2-hectare (5 acre) site in the Bawal Industrial area, Haryana State, about 80　kilometers southwest of Delhi
• Investment: Rs. 377 million (US$7.5 million ) for buildings, systems and machinery
• Total floor space: More than 3,600 square meters
• Capacity: 200,000 electric-power steering systems per annum initially with expansion already planned

Special plant design features:

• Building designed to maximize natural lighting
• Assembly room is centrally air conditioned
• Building has been architecturally designed without any support pillars
• Adequate space for future expansion

Notable manufacturing features:

• Production line utilizes advanced material-handling system to achieve rapid, high-volume production with consistently top quality.
• Critical machinery has been imported from NSK Ltd., Japan

Human Resources:

• Plant will employ about 100
• Production staff trained on-site by NSK specialists
• Key process technology and manufacturing engineers trained in Japan by NSK Ltd.

About RNSSL

Established in 1997 as a 50/50 joint venture between Rane Group and Tokyo-based NSK Ltd., RNSSL produces:

• Energy-absorbing steering columns
• rigid steering columns
• tilt, telescopic & sliding steering columns
• intermediate shafts and joint assemblies

About NSK Ltd.

Tokyo-based NSK Ltd. is the world’s third-largest bearing manufacturer and noted for technological innovation. Founded in Japan in 1916, NSK is now a truly global company with 23,000 employees and manufacturing operations in 14 nations worldwide. Revenues in the fiscal year ended March 31, 2008 reached ¥ 772 billion.

About Rane Group

Established in 1929, the Rane Group comprises seven companies manufacturing safety and critical components for a broad range of automotive industry segments. In fiscal 2006-7 the group recorded revenues of Rs.13,650 million, (US$273 million). The Rane Group embraces TQM as a way of life and four of its companies have received the coveted Deming Prize.