II. Forecasts For The Year Ending March 31, 2002
(Consolidated)

Finally, our forecasts for our cash flow;
 Cash flow provided by operation activities for the full year is expected to total 27.4billion yen. Ordinary loss of 5.5 billion yen is expected, but depreciation and amortization totaling 27.1 billion yen, proceeds from the liquidation of notes receivable from NSK Sales Co., Ltd. worth 10 billion yen, and reduction in inventories worth 4.5 billion yen are expected to offset this. (Other increases and decreases include payment of income tax and restructuring costs.)
 Cash flow used in investing activities is expected to total 33.5 billion yen, with proceeds of 8.9 billion yen from the sale of the former Tamagawa Plant site being received in the first half of fiscal 2001 and a total of 40.1 billion yen worth of capital expenditure expected for the year.
 Cash flow used in financing activities shall include payment of 9 billion yen for the purchase of treasury stocks for retirement, and 3.1 billion yen worth of dividends paid. This will necessitate cash worth 17.9 billion yen which will be covered by a net increase in loans worth 35.2 billion yen, including 30 billion yen worth of long-term debts by the parent company to increase the amount of cash on hand.
 As a result, the consolidated amount of interest bearing debts at the end of the year is expected to total 282.5 billion yen (the total at the end of the previous fiscal year was 245.8 billion yen) and cash on hand is expected to total 64.3 billion yen.
  This concludes the explanation of the financial results for the six months ended September 30, 2001 and the forecast for the year ending March 31, 2002.