Yasunobu Suzuki Chairman and CEO	Shigeyoshi Takagi President

The Japanese economy to the year ended March 31, 2012 showed promising signs of recovery following the impact of the Great East Japan Earthquake, however tough market conditions remain, including a slowdown in exports as the yen continues to stay at record high levels. The recovery in the global economy has also slowed as the impact of the Thailand flooding spreads, the debt crisis continues to grip Europe and monetary tightening takes hold in China.

With these factors affecting the market, the NTN group has focused efforts on achieving the goals set out in the three-year medium-term management plan “Global Advance 2013” that began in April last year, by expanding business globally chiefly in growth markets, while at the same time increasing sales in the industrial machinery market and aftermarket. As the conditions that shape the global economy continue to change, NTN is planning to turn its attention to establishing a system capable of applying the “on local site with local materials by local personnel” concept to its global business approach, which involves local employees using local facilities and materials under localized management.

In June this year, NTN and former executive officers were charged by the Japan Fair Trade Commission on the suspicion of violating the Japan Antimonopoly Act in the bearing business, and on the same day were indicted by the Tokyo District Public Prosecutors Office. NTN sincerely apologizes for any inconvenience caused to shareholders, customers and any other persons associated with NTN for this matter, despite the efforts taken to comply with all applicable regulations and rules, to ensure fair competition, and to ensure honest and ethical company activities. NTN has approached the matter with the utmost severity, and is making every effort to comply with the applicable regulations.

NTN would like to take this opportunity to request the continued support and cooperation of all shareholders.

July 2012
Yasunobu Suzuki, Chairman and CEO
Shigeyoshi Takagi, President