Greetings from the New President

To our Stakeholders
On the occasion of my nomination as the new President of the company, effective April 1, 2008, I would like to extend my greetings to our valued stakeholders.
Fiscal year 2000 marked the company's "third inception" and since then, through the unified efforts of all of our employees under the leadership of my predecessor, Mr. Katsuki, we have vigorously pursued improvements in operational efficiency. As the result of these efforts, we expect to report two consecutive years of increased revenues and operating profits for fiscal year 2007. Compared to fiscal year 2000, this represents a dramatic, 1,500 million yen increase in revenues and a 3,700 million yen increase in operating profits - the highest ever profit level attained by the company. I am thus assuming stewardship of the company from Mr. Katsuki at a time when we have built a stable operating foundation with a sound financial structure and are postured toward a new stage of growth.
In fiscal year 2008, recessionary signs abound amid concerns of a slowdown in the global economy triggered by the subprime mortgage meltdown, and with steep rises in raw material costs, an appreciating yen currency, and other factors, there is a rapidly broadening view that the mechanisms for growth of the export expansion-dependent Japanese economy cannot be sustained. This situation is increasing the risks of a squeeze on corporate earnings. However our marine equipment business, bolstered by continued brisk activity in the shipping and shipbuilding markets, and hydraulic equipment business, aided by bullish market demand in Asia and newly developing countries, are expected to remain strong. In meeting the challenges of a changing external environment and enhancing company value as means to ensure enduring corporate growth and development, we will utilize the tangible and intangible management resources at our disposal in establishing a "cycle of growth" which will enable us to generate and maintain a competitive edge.
Three fundamental strategies are being implemented to achieve our goals.

1. We will strengthen our existing business by emphasizing high value added predicated on a medium- to long-term viewpoint as well redouble our efforts in improving efficiency.
2. We will restructure our operations and engender competitive predominance in forging a cycle of growth.
3. We will strengthen development of our human resources, which is the basis of our product development, as well as the organizational capabilities that harness these resources.

On October 1, we are restoring the former name of the company - TOKYO KEIKI - a name closely associated with the firm's long history and name which epitomizes trust and reliability. As a precision equipment manufacturer dedicated to contributing to society through the development of products and people resources, we are returning to our inaugural roots and within the context of our management philosophy "dedicated to serving society by developing and providing products with cutting edge technologies that integrate human sensorial functions", it is our goal to become a top-tier global manufacturer.
We look forward to the continued support and encouragement of our stakeholders in this endeavor.