March 30, 2004

First Annual Product Creation Awards:
Fluid Dynamic Bearing Unit Received the Innovative Product Award!!

The "Innovative Product Award" was bestowed on NTN's "Fluid Dynamic Bearing (FDB) Unit" at the "First Annual Product Creation Awards" sponsored by the Nikkan Kogyo Shimbun, Ltd. In a ceremony held in Tokyo on March 30th of this year, the award and a plaque were presented to NTN. The demand for NTN's "FDB Unit" is soaring because of the product's running accuracy which is particularly well suited for hard disk drive (HDD) applications, helping to increase storage capacity dramatically.

prize	plaque

This "Product Creation Award" is a newly created award presented by the Nikkan Kogyo Shimbun, Ltd. for new products that exemplify innovation and creativity in Japan and contribute to industrial and social development. This "Product Creation Award" focuses on the best products that support the Japanese economy and is the culmination of a lengthy and detailed selection process from among product creations developed and commercialized within a one year period.

This year, NTN's Fluid Dynamic Bearing received exceptionally high ratings in the selection process. These ratings were based on: (1) creation of a bearing unit for HDD spindle motors that combines an FDB with a sintered bearing while conquering numerous technical problems, (2) an original product concept with proven results and economic benefits, and (3) a product that utilizes press forming of dynamic grooves to achieve lower processing costs, etc.

<"FDB Unit" delivers both high running accuracy and reliability!>

FEATURES

·Non-contact spindle rotation due to hydrodynamic pressure effects

High running accuracy

Extremely low noise

·Sintered alloy bearing sleeve with press-formed dynamic grooves

Superior manufacturability

·Sintered alloy impregnated with lubricant oil

Anti-seize features ensure long service life

·Lead-free brass housing and bushing

Environmentally sound design

APPLICATIONS

·HDD spindle motors (PC's, automotive navigation systems, etc.)

·Spindle motors for high-density optical disks

·Polygon scanner motors, etc.

<Expanding FDB unit business>

Production of NTN's "FDB Units" began in the spring of 2003 at the NTN-Nidec (Zheijang) Corporation (NTN 60%, Nidec 40%) in China. However due to the sudden increase in demand, NTN-Nidec is planning to increase capacity to 8 million units per month by March 2005.

In Thailand, NTN's wholly-owned subsidiary, NTN Manufacturing (Thailand) Co., Ltd. has purchased additional land and is constructing a new plant exclusively for manufacturing sintered alloy FDB's. This plant will also manufacture components such as the plastic housings and flanged shafts that are used in these FDB units.

NTN-Nidec Corporation	NMT new factory after construction (concept view)

Demand is soaring for NTN's "FDB Units" in use in the hard disk drives in PC's, HDD video systems, mobile devices, car navigation systems and cellular phones. The market share held by NTN's FDB with its unique oil-impregnated sintered alloy bearing technology will increase, and in a move towards "global standardization" the higher production will include FDB's used in the new 2.5-inch-and-below HDD units as well as conventional 3.5 inch HDD models.