II. Forecasts For The Year Ending March 31, 2003

 The breakdown of the the 10.8 billion yen increase in operating income that we expect in Japan is as shown.

 At the parent company, although we plan to increase our sales revenue by 30 billion yen, we plan to derive only 3 billion yen worth of profit increases, taking into consideration the probable increased in labor costs in connection with increased production, and the tightening of production in accordance with our continued inventory reducing activities. We also plan to obtain 9 billion yen worth of profits as the result of our business restructuring activities.

 On the other hand, we expect increased pension liabilities and accounting adjustments to eliminate profits worth 2.8 billion yen.

 As for our domestic subsidiaries, we expect an increase in profits resulting from the increase in sales from NSK Sales Co., Ltd. and NSK Kyushu Co., Ltd.