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Press Release

PRESS RELEASE

1 June 2002

Murata Machinery USA, Inc. begins Operations.

MURATEC, Murata Machinery, Ltd., Kyoto, Japan, has consolidated three USA subsidiaries in the industrial machinery sector. As the new company, Murata Machinery USA, Inc. (MMUSA, below), began its operations on June 1.

The pre-merger companies are Murata of America, Inc. (Textile Machinery), Murata Automated Systems, Inc. (Logistics & Automation), and Murata Wiedemann, Inc. (Machine Tools). Each of these companies was a legally independent US subsidiary of Murata Machinery USA, Inc. (the U.S. holding company). They were established respectively between 1974 and 1990, all based in Charlotte, North Carolina, and developed the U.S. market and provided customer services for their divisions. With consolidation of managerial skills and business resources, MMUSA is expected to perform more effective operations as the Muratec headquarter in North and South American market.

Muratec America, Inc., the communication equipment marketing company located in Plano City, Texas, USA, was not included in this merger.

Masaharu Nishio, a current director (president of the former Murata of America and Murata Automated Systems), is president of MMUSA. Starting with 167 associates, MMUSA is expected sales of US$107 million in the initial year.

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