ADVICS, Aisin Seiki Announce Merger of Automotive Brake Business in China

Dec. 5, 2007 -- ADVICS Co., Ltd. (hereinafter, ADVICS) and Aisin Seiki Co., Ltd. (hereinafter, Aisin) announced today that ADVICS and Aisin agreed the merger of Chinese manufacturing subsidiaries, ADVICS Tianjin Automobile Parts Co., Ltd. (hereinafter, ADVICS Tianjin)and Tianjin Aisin Automobile Parts Co., Ltd. (hereinafter, Tianjin Aisin).

ADVICS and Aisin have manufactured and sold automotive brakes by sharing manufacturing operations in the same production base in Tianjin Beichen Hi-tech Industrial Park in China since Aisin established Tianjin Aisin in 1997 and ADVICS established ADVICS Tianjin in 2004.

Along the popularization of automobiles in the current and future Chinese market, the establishment of a strong business foundation is urgently required. Under such circumstances, both ADVICS and Aisin determined that it is necessary to reinforce a business unit by merging the Chinese manufacturing subsidiaries of ADVICS and Aisin to rationalize production and further promote efficiency in management aiming at further growth and development in the automotive brake business in China. Accordingly, ADVICS and Aisin agreed with the merge of ADVICS Tianjin and Tianjin Aisin.

ADVICS and Aisin will pursue strengthening of quality and cost competitiveness and will aim at expanding the size of its automotive brake business in China along with the merger.

Information of New Company
Company name: ADVICS Tianjin Automobile Parts Co., Ltd.
Location: East of Jin-wei Highway, Beichen Hi-tech Industrial Park, Tianjin, CHINA
Representatives: Chairman　 Shuzo Matsumoto (Vice President of ADVICS Co., Ltd.)
President　 Mitsuharu Ito
Capital: USD 45,514,816 (Approximately JPY 5.00 billion)
Ownership: ADVICS Co. Ltd. 50.1%
Aisin Seiki Co., Ltd. 47.2%
TOYOTA TSUSHO Co., Ltd. 2.7%
Establishment: July 2008 (scheduled)
Manufactured products: Brake Booster & Master Cylinder, Brake Caliper, Parking Brake
Sales: Approx. CNY 1.36 billion (Approximately JPY 18.00 billion) estimated in 2008
Number of employees: Approximately 1,400 estimated in 2008

Sources: ADVICS Co., Ltd. / Aisin Seiki Co., Ltd.

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