NIKKISO Pumps with two new subsidaries

NIKKISO Pumps KOREA LTD.

Nikkiso has newly established 100% owned subsidiary company, NIKKISO Pumps KOREA LTD., while dissolved 50% J/V company Samjin-Nikkiso Co., Ltd.

Although NIKKISO Pumps KOREA is currently a sales company of imported products from Nikkiso Japan, it's expected to have its own production line in Korea in future, playing an important role for Nikkiso's world-wide business strategy.

NIKKISO Pumps America, Inc.

NIKKISO Co., Ltd. establish the new company NIKKISO Pumps America, Inc. (hereinafter, NPA) in the State of Pennsylvania (USA). The move was followed in January 2001 by the acquisition of the assets (including production facilities) of pump manufacturer Penn Process Technologies, Inc. (hereinafter, Penn) also based in Pennsylvania. With the acquisition, NIKKISO has established a full-scale production and marketing base for its pump sector in North America.

Henceforth, the company intends to use the business and sales network inherited from Penn along with its extensive production facilities and maintenance capacity to aggressively market its NIKKISO metering pumps (i.e., pumps used in chemical and other processes that call for reliability and precision metering) in the United States, Central and South America. These pumps already enjoy an excellent reputation in Japan, Asia and Europe.

In the future, the company has set a target of achieving a 10% share of the North American market within a decade. NPA has already started its business on February 1, 2001.

About NIKKISO

"NIKKISO CO., LTD. was founded in 1953 by Keijiro Oto, who is currently Honorary Chairman and Director. At that time, the company was known as Special Pump Co., Ltd., and its main business operations were the import and sale of pumps manufactured by Milton Roy Company of the U.S. as sole agent for this firm in Japan. Two years later, under a technical assistance and licensing agreement with Milton Roy, we began to manufacture pumps in Japan. Since then, we have diversified into various new fields such as projects & instrumentation, medical equipment, and advanced materials. We seek to make advances into overseas markets and expand our operations through distributorships and technical licensing agreements in many countries.

With corporate philosophy represented by a key concept "Environment" and "Human Lives", the company has two main business units: Industrial Division and Medical Division. In the Industrial Division, we produce pumps, instrumentation, high-pressure equipment and carbon fiber composites, all designed and produced with environmental considerations in mind. In our Medical Division, we manufacture hemodialysis systems and other medical equipment intended to safeguard health and improve patients' quality of life.

The common factor in these two divisions is advanced technologies for flow control. In all our activities, we strive to identify where the company can excel and to pursue promising opportunities. Nikkiso is a very unique company offering specialized technologies, products and services."