Domestic Production System to be Strengthened by Setting up a New Factory in Toki City, Gifu Prefecture (June. 22, 2007)

Hosei Brake Industry Co., Ltd.

As a means of bolstering its domestic production system, Hosei Brake Industry Co., Ltd. (President: Genshiro Mizuno; Headquarters: Toyota, Aichi) will establish a production plant for the press welding process in Izumi-cho, Toki City, Gifu.

The company has been conducting production of press welding process components for mainstay products as such drum brakes, axle housing cases and air suspension chambers at the Head Office factory. Due to a lack of space at this site following an expansion in orders for drum brakes, the company will set up a new manufacturing base in Izumi-cho, Toki, which becomes the fifth domestic factory and first production facility outside of Aichi Prefecture.

Hosei Brake Industry will also take this opportunity to restructure the production system at respective operational bases and put a system in place to handle increases in production. In addition, together with promoting the development of an efficient operational structure, efforts will also be directed toward contributing to the local community.

1.	Name (tentative):	Toki Plant, Hosei Brake Industry Co., Ltd. (establishment as a subsidiary currently under review)
2.	Location:	Kujiri, Izumi-cho, Toki City, Gifu Prefecture
3.	Site area:	Approx. 48,000 square meters
4.	Building area:	Approx. 6,000 square meters (first phase)
5.	Investment:	Approx. 2.5 billion yen
6.	Manufactured products:	Press welding process components (axle housing cases, air suspension chambers, etc.)
7.	Start of operation:	September 2008 (scheduled)
8.	Employees:	Approx. 150
9.	Net sales:	Approx. 6 billion yen