December-07-2006

JAE to Construct New Plant Building for Production Subsidiary in the Philippines.
(doubling the capacity of the low-cost production base)

Since last year JAE has been making positive capital investments to enhance its domestic-overseas integrated production system to promote future sales growth and become more competitive. This year as well, JAE will be increasing the amount of capital investment from the initial plan to a total of 15.0 billion yen, which is comparable with the 15.2 billion yen invested in the preceding fiscal year.

As part of the initiative, JAE will be acquiring a 18,000 square meter parcel of land next to the location of JAE Philippines, Inc., which is positioned among the low-cost production bases in the global production map. On this property JAE will construct a new plant with a floor area of 8,000 square meters to increase the production infrastructure to around 1.8 times the existing level. Specifically, the construction will commence in November 2006 and be completed in June 2007 and the new plant will be put into operation in July 2007.

Located in a suburb of Manila on Luzon Island, JAE Philippines, Inc.^* (President: Shinichi Kimura) was launched in 1996 as a low-cost production base under the initiative for globalization. In 2000, the company doubled the size of the building in the second-stage construction. Its operation has been constantly growing mainly in manufacturing of automotive connector products, an area in which production technologies are emphasized within the company.

JAE finds its current production space too small to ensure further growth in the future. Subsequent to the start up of JAE Wuxi Co., Ltd. in China this past spring, JAE has adopted a resolution to promote infrastructure investment.

At a later time date, molding machines and stamping machines will be introduced and the production equipment will be enhanced. The sales of JAE Philippines, Inc. will be boosted to nearly 1.5 times the current level by 2010.

* JAE Philippines, Inc. is located in Gateway Business Park, a PEZA-recognized export processing zone about 50 km to the south of Manila.

• Land lot area to expand by 18,000 m² - from 25,000 m² to 43,000 m²
• Total floor area to be expanded by 8,000 m² - from 10,000 m² to 18,000 m²
• Construction of the new plant building will commence in November 2006 and be completed in June 2007 and the new plant will commence operation in July 2007.