Press Release

Operations begin at a plant of NSK-WARNER in Shanghai, China

Tokyo, Japan, March 17, 2006 - NSK Ltd. (NSK; Headquarters: Tokyo, Japan; President and CEO: Seiichi Asaka) started operations at its newly constructed plant in Shanghai, China. Built in response to a growing demand for automatic transmission (AT) systems in Asia, this plant will manufacture AT components.

NSK-Warner K.K. (NSK Warner; located in Fukuroi Shizuoka, Japan), a joint venture between NSK and a leading US auto components supplier called BorgWarner Inc., consigns production at the new plant to its subsidiary, NSK-Warner (Shanghai) Co., Ltd.

At the plant, production of components for the power transmission device used in AT systems, such as friction materials and one-way clutches, has begun, enabling NSK to supply such components to the plants of manufacturers around the world, as well as automakers in China.

Profile of the new manufacturing plant
Establishment April 2005
Capitalization US$8 million (planned to increase to US$20 million)
Equity investment ratio NSK-Warner (100%)
Location Fengxian District, Shanghai
Land area 50,000 square meters
Projected sales First year: Approximately JP\0.5 billion/year
Production items Friction materials for AT systems & one-way clutches
Employees 250 (provisional)
Investment Approximately JP\2 billion