AISIN Has Established a New Production Company for Wet Friction Materials of Automatic Transmission in the United States (February 8, 2006)

Aisin Seiki Co., Ltd. (President: Yasuhito Yamauchi; Headquarters: Kariya, Aichi, JAPAN) has established a new company called “AISIN CHEMICAL INDIANA, LLC” in Crothersville, Indiana, USA. The new company will produce wet friction material to be assembled in automatic transmission (AT) and is expected to start manufacturing from July 2007. The wet friction material is a part used for transferring and disengaging torque at changing speeds in AT. Aisin Chemical Co., Ltd. (President: Yasuhide Shibata; Headquarters: Toyota, Aichi, JAPAN), an Aisin group company and a manufacturer of friction materials, plastic parts, and chemical products, developed and produces this disc. By applying this new process that splits wet friction material into segments, fuel efficiency is improved and the manufacturing cost has largely decreased, compared with our old discs. This has resulted in an increase in orders. To handle these increased orders, plus an increase in North American AT production, we have established a new company in North America. Our goal is to expand the global supply system as well as our business. The following are the details of the new company.

1. Company name:	AISIN CHEMICAL INDIANA, LLC
2. Establishment:	Jan 5, 2006
3. Location:	Crothersville, Indiana, U.S.A
4. Capital:	4.8 million dollars
5. Shares:	100% owned by Aisin Holdings of America, Inc.
6. Representative:	President: Takahiro Ishikawa (Aisin Chemical Co., Ltd)
7. Plant size:	Approximately 3,000 square meter (within Aisin Drivetrain Inc., Crothersville, Indiana)
8. Manufactured products:	Wet Friction Materials for Automatic Transmissions
9. Start of production:	July 2007 (scheduled)
10. Sales:	Approximately 20 million dollars (projected for fiscal 2009)
11. Employees:	Approximately 30 (projected for fiscal 2009)
12. Investment:	Approximately 12.5 million dollars including machinery and equipments
13. Customers:	Toyota Motor Corporation in North America, AW North Carolina, etc.
14. Others:	This is Aisin’s 21st production company in North America

[Reference - Product Explanation]

Wet Friction Materials (Segment Type Discs) for Automatic Transmissions
Wet friction materials are components that transmit and cut off torque during shifting of automatic transmissions. Previously used materials were hollowed out into a disc in accordance with the shape of the core plate. However, switching to a processing method whereby segmented pieces are placed onto a disc enables drag torque (torque loss while the clutch is spinning) to be drastically reduced and provides significantly higher vehicle fuel efficiency. Moreover, this production method reduces unusable materials to just one-fourth the previous amount and improves material yield, thus dramatically lowering costs.




[Reference - Company Summary]

1. Company name:	Aisin Chemical Co., Ltd.
2. Establishment:	February 1952
3. Location:	1141-1 Okawagahara, Fujioka-Iino-cho, Toyota, Aichi, JAPAN
4. Capital:	2,118 million yen (as of March 31, 2005)
5. Representative:	President: Yasuhide Shibata
6. Business:	Manufacturing and selling chemical products, frictional materials, and plastic parts for automobile
7. Sales:	343 million yen (year ended March 31, 2005)
8. Employees:	689 (as of March 31, 2005)