<<Business Environment>>

Business environment continued to be robust overall

• Industrial machinery bearings:
  Demand related to capital expenditures was strong globally.
• Automotive products:
  Demand for exports drove sales increase in Japan.
  Demand in China remained robust.
• Semiconductors/liquid crystal production equipment:
  Demand has been in an adjustment phase since the previous fiscal year.

<<Summary of Business Result>>

• Both sales and profits increased YOY and exceeded the forecasts announced in May 16, 2007
• Results by Business Segment
  • Industrial machinery bearings:
    Maintained an operating income margin of over 13% backed by aggressive demand.
  • Automotive products:
    Profitability improved due to internal efforts of improvement activities.
  • Precision machinery and parts:
    Profits decreased due to the effects of demand environment.