AISIN - News Releases - Business Strategies

Transfer of Automotive Brake Business
(May. 11, 2007)

Aisin Seiki Co., Ltd.
Sumitomo Electric Industries, Ltd.

Aisin Seiki Co., Ltd. (hereinafter, Aisin) and Sumitomo Electric Industries, Ltd. (hereinafter, Sumitomo Electric) are pleased to announce the two companies have reached an agreement in which Sumitomo Electric’s automotive brake business will be transferred to Aisin on October 1, 2007.

Since having established ADVICS Co., Ltd. jointly with DENSO Corporation and Toyota Motor Corporation in July 2001 for developing and marketing brake systems for automobiles, the two companies have been separately handling the production of brake systems for automobiles.

Amid the rapid development and introduction of car electronics and IT in recent years, both the need for advanced technological development and even more intense competition in terms of cost for automotive parts are expected. Under such conditions, Aisin and Sumitomo Electric have determined that it is necessary to further accelerate efficiency and streamlining of production by integrating the two companies’ manufacturing divisions, in order to achieve further growth and expansion of the automotive brake business centering on ADVICS. The decision has been subsequently made to transfer Sumitomo Electric’s automotive brake business to Aisin which is the parent company of ADVICS.

Through the business transfer, Aisin will further promote efficiency in terms of production with the aim of strengthening quality and cost competitiveness as well as expanding the scale of the brake business. Additionally, Sumitomo Electric will continuously promote the efficiency of the Group’s business operations together with concentrating its technological capabilities in automotive related fields in an effort to develop and expand sales of appealing new products and in turn further enhance corporate value.

Overview of Respective Companies

Company Name	Aisin Seiki Co., Ltd.	Sumitomo Electric Industries, Ltd.	ADVICS Co., Ltd
Established	June 1949	December 1920	July 2001
Head Office	Kariya, Aichi	Chuo-ku, Osaka	Kariya, Aichi
Capital	¥45.0 billion	¥96.7 billion	¥5.75 billion
Representatives	President Yasuhito Yamauchi	President Masayoshi Matsumoto	President Haruhiko Saito
Net Sales (Consolidated)	¥2,378.6 billion	¥2,384.4 billion	¥374.4 billion
Employees (Consolidated)	66,300	133,853	1,990
Main Businesses	Automotive parts and systems, life & energy related and other businesses	Automotive, information & communications, electronics, electric wire & cable, energy and other businesses	Development and sales of brake systems for automobiles and their system components