We have positioned our operations in China as one of the cores for further growth of the Minebea Group in the 21st century and thus place a high priority on reinforcing our local capabilities. We began operating in China in 1994, when we established Minebea Electronics & Hi-Tech Components (Shanghai) Ltd. (MEHC), our first local subsidiary, at the lakeside of Dianshan-hu, which is located on the Western outskirts of Shanghai, and commenced production of our mainstay miniature and small-sized ball bearings and fan motors. In 2002, we established Shen Ding Pte. Ltd., a joint venture with Huan Hsin Holdings Ltd., of Singapore, and Shanghai Shun Ding Technologies Ltd. (SST), a PC keyboard manufacturing subsidiary of Shen Ding, in the southern industrial park of Shanghai. Production at SST commenced in August 2003. We have since expanded our presence significantly. As of March 2005, we have MEHC¡¯s Shanghai and Xicen plants, and SST, which boast a total combined floor space of 130,000 square meters, occupy a 540,000-square meter site and employ approximately 8,700 people. These plants produce miniature and small-sized ball bearings, fan motors, integrated-shaft ball bearings, measuring components and PC keyboards. Production in China represents approximately 17% of total Group output, the percentage of which has been increasing year by year. The majority of products from our Chinese plants are exported to manufacturers worldwide. With demand for Minebea products in China expected to increase significantly, we will closely monitor local and global market trends and diversity and expand our Chinese production items and capabilities accordingly. Production in China represents approximately 13% of total Group output, making the country our second largest mass-production base after Thailand, which represents approximately 60% of total Group output. The majority of products from our Chinese factories are exported to manufacturers worldwide. With demand for Minebea products in China expected to increase significantly, we will closely monitor local and global market trends and diversify and expand our Chinese production capabilities accordingly. In so doing, we hope to bring our operations in China in line with those in Thailand in terms of overall scale. In our Chinese operations, the companies of the Minebea Group will continue to work together in the years ahead to reinforce MEHC¡¯s and SST¡¯s ability to ensure a stable, timely supply of products that truly satisfy customers in an optimum work environment. Takayuki Yamagishi Representative Director, President and Chief Executive Officer