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Release: April 1, 2002

NGK Transfers Stock of Its Construction Materials Subsidiary to
Takara Standard Co., Ltd.

NGK Insulators, Ltd. (President: Masaharu Shibata, Head Office: Nagoya, Aichi) has decided to withdraw from the construction materials business and to cease manufacture and sales of enameled materials and frit products. In accordance with this decision, the company will transfer stock of its manufacturing subsidiary, NGK Frit Co., Ltd. (President: Masaaki Osawa, Head Office: Handa, Aichi), to Takara Standard Co., Ltd. (President: Naoyuki Kanno, Head Office: Osaka).

As a part of its company diversification program, in the 1960s NGK branched out into the construction materials business, where it could apply its expertise in the fields of frit technology, from which glaze is made, and enamel processing technology. In 1978, NGK introduced an architectural enameled panel used for building exteriors, and in 1991, sales figure of the construction materials business totaled 8 billion yen, including overseas. In recent years, however, the construction materials business remains stagnant due to fall in demand and intensified competition caused by a prolonged slump in the construction business and decreased public works construction. In the interest of boosting profitability in order to cope with these difficult conditions, NGK Insulators has lowered costs and improved its operating efficiency. However, the prospect of major business growth in the future appears slim, and the company has determined that achieving profitable business operations will be difficult. Accordingly, it has decided to withdraw from the construction materials business at the end of the term ending March 2002.

To fulfill its responsibilities in maintaining employment including its group companies and supplying products to customers, NGK has decided to transfer its manufacturing and sales license of its frit and enameled products and stock of its manufacturing subsidiary, NGK Frit Co., Ltd., to Takara Standard Co., Ltd., a customer of NGK's frit for enamel.

NGK will continue to promote its "selection and concentration" policy in order to shift management resources to core business operations, with the aim of achieving high growth and profitability.

1. Transfer of NGK Frit to Takara Standard

Items transferred:
All shares of NGK Frit (300,000 shares), land (30,000 m2), and buildings
Transfer amount:
¥1.6 billion
Date of transfer:
April 30, 2002

2. Outline of Takara Standard Co., Ltd.

Establishment:
May, 1912
Capital Stock:
¥26,356 million (Listed on the First Section of both Tokyo and Osaka Stock Exchange)
Head Office:
Shigino-Higashi 1-2-1, Johtoh-ku, Osaka, Japan
Representative:
Naoyuki Kanno
Number of Employees:
5,026 (as of March, 2001, consolidated basis)
Annual Turnover:
¥129.6 billion (as of March, 2001, consolidated basis)
Description of Business:
Manufacture and distribution of general household equipment,including enameled products; enameled kitchen unit, washstand,bathroom unit and enameled wall panel

3. Outline of NGK Frit Co., Ltd.

Establishment:
July, 1963
Capital Stock:
¥150 million (100%-subsidiary of NGK Insulators. Ltd.)
Location:
4-5-5, Minatomachi, Handa, Aichi, Japan
President:
Masaaki Osawa
Number of Employees:
126
Annual Turnover:
¥2.5 billion (as of March, 2001)
Description of Business:
Manufacture of frit and enameled products (Various frit, glass filler, special glass powder,enameled building panels, sheet for writing board surface,interior walls of tunnel, zirconia pigment, etc.)

4. NGK's construction materials business

As a part of its company diversification program, in the 1960s NGK branched out into the construction materials business, where it could apply its expertise in the fields of frit technology, from which glaze is made, and enamel processing technology. HICERAL®, which is an enameled, aluminized steel sheet that may be used as a writing board surface, still dominates a large share of the market. In 1978, NGK introduced NGK-WALL, an architectural enameled panel used for building exteriors, with the aim of adding greater value to NGK's existing products. In 1991 alone, with sales figure of the construction materials business totaling 8 billion yen, NGK products were used in various facilities, from bullet train and subway stations to the Nagoya Trade and Industry Center and the pedestrian bridge leading to the Nagoya Dome. In recent years, however, demand for high-end construction materials has dropped sharply due to a prolonged slump in the construction business and decreased public works construction.

5.Sales figure in constructions materials business (consolidated bases)

March, 1999
4.1 billion yen
March, 2000
3.4 billion yen
March, 2001
3.5 billion yen
March, 2002
S2.3 billion yen (estimated)

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