Business Results for the Six Months
Ended September 30, 2002

 Moving on to extraordinary income and loss;

“Costs related to business restructuring” include 6.5 billion yen in expenses for the Early Retirement Program carried out at the parent company and NSK Fukushima Co., Ltd., 0.5 billion yen in business restructuring expenses at NSK Machinery Co., Ltd. and Nikkyo Corp., and 1.8 billion yen for business restructuring activities carried out in Europe.
 Loss on sale of equity in Aeroengine Bearings UK Ltd. was appropriated as “loss on sales of investments in affiliated companies.” Together with “loss on devaluation of investment securities” and “provisions for employees’ retirement benefit trust,” a total of 10.7 billion yen was appropriated as extraordinary losses. 

 To offset this loss and to cover the business restructuring expenses that are expected to arise in Europe during the 2nd half of FY 2002, 15.0 billion yen was appropriated as extraordinary income. The breakdown is as follows:

• 11.9 billion yen from the contribution of Toyota Motor Corp. shares to the
  employees’ retirement benefit trust.
• 2.3 billion yen from the sale of investment securities following the
  unwinding of cross-holdings by the parent company.
• 0.8 billion yen from the sale of property, plant and equipment
  (i.e. dormitories and company housing)