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Fiscal 2003 News
Global Brand Launch of the Power Transmission and Controls Business of Sumitomo Heavy Industries on October 1st, 2003.09.12

September 30, 2003

As of October 1st, Sumitomo Heavy Industries, Ltd. (Yoshio Hinoh, President and CEO) will introduce the new "Sumitomo Drive Technologies" brand to bind all thirty of its companies together globally in the Power Transmission and Controls Business.

It is a very advanced approach for Japanese B2B companies to brand business "units"-not companies or products, to achieve leveraged group management. We have been introducing profit-center systems for each business unit with their own managerial accounting system. Today, the Power Transmission and Controls Business, one of the largest businesses in Sumitomo Heavy Industries, which has worldwide bases (8 plants, 35 assembly centers, 226 sales offices worldwide, and 2300 employees), will be united as one under a newly introduced global brand: Sumitomo Drive Technologies.

Our Power Transmission and Controls business has grasped 70% of the Japanese market and 15% of Overseas market share and achieved the sales of 10 million Cyclo Drives in August 2003. With the opportunity presented in the Anniversary of the 10 Millionth Cyclo, we would like to take a further step to adapt ourselves to the rapidly changing business environments that become more and more global and borderless everyday.

Our branding activities include not only this brand launch's Visual Identity change, but also a series of actions to optimize our business capabilities in order to align ourselves with the new brand. We, as a "dependable partner", will appeal our business identity to our customers and share it among all our employees. Our objective for the activities listed below is to provide our customers with better support through our global network, to strengthen relationships with our customers, and to differentiate ourselves through our quality products. The new brand will also function as our global symbol through our company and will provide a "code of conduct" and business direction to share amongst
our employees all over the world.
Planned activities are as follows:

1. Unify the Group's Visual Identity System
2. Organize Brand Management Task Forces
3. Brand Touch Point Management
4. Operational Effectiveness Improvement
5. Review our Product Brand Architecture
6. Realignment of Business Activities


By introducing this new brand, we will extend our commitment and appreciation with our customers and promise that we will reassure our values as a "dependable partner with reliable products of unique technologies and innovative solutions"; enforce "dynamic and speedy support and services," in order to propose the utmost values to our customers.

[Appendices]
1. About our New Brand
2. Our Group Companies
3. From the First Cyclo to the Anniversary of the 10 Millionth Cyclo
4. Summary of the Power Transmission and Controls Business


1. About Our New Brand:
Brand Symbol:

Sumitomo Drive Technologies



-"Sumitomo Drive Technologies" is our brand symbol that serves our customers with a wide range of product offerings ranging from sub-fractional gear motors for home applications to large industrial gearboxes for steel mills. The logo above will become the symbol of values we propose to our customers. It is not simply a new logo that expresses our brand name, but an expression of characteristics that our brand possesses, including the functional and emotional aspects-an expression of our ambition. To convey the importance and intended value of our brand, we share this brand symbol throughout our Group to deliver our messages to our customers.

Tagline:

Always on the Move



-With this tagline, we wish to briefly express the value of our brand. The tagline plays an important function in communicating our brand to our customers, shareholders, and collaborating companies. To the members of our Group, the tagline plays the role of a password that expresses our shared objective.

-"Always on the Move" is a simplified slogan that conveys three basic functions of our division. The first meaning to our tagline is our commitment to our customers-to continuously "move" for them and become their most reliable partners in business. The second meaning to our tagline is for the constant thinking and movement of our employees at Sumitomo Drive Technologies. The third meaning to our tagline is the very functional aspect of our products, which create the accurate and precise movements of various machineries and instruments that our customers handle. This is the core of not only ours, but our customers business, and it is what makes us successful.

Brand Statement:

We are always moving forward in pursuit of new ideas
that inspires our partners to create new values that will change the world.
Each of our skilled, knowledgeable, creative employees
contributes to the creation of unique technologies and innovative
solutions that meet and exceed our partner's expectation.
Our global network facilitates premier support of our partner's needs.

We stand poised to meet the challenges of today and tomorrow,
so that our partners may walk with confidence as industry leaders.

Always on the Move



Sumitomo Drive Technologies: A dependable partner, creating
unprecedented change and opening up unseen worlds.

That is who we are


2. Our Group Companies:

Sumitomo Heavy Industries
Sumitomo Heavy Industries(Sales)PTC Sales Co Ltd.
Hokkaido PTC Sales Co. Ltd.
SEISA
Ueda SKK
Tomita
Technos
Sumitomo Machinery Corporation of America
SM-Cyclo De Mexico,SA de CV
SM-Cyclo Reductores Do Brazil, Ltda.
SM-Cyclo Reductores Do Brazil, Ltda.
SM-Cyclo De Argentina S.A.
SM-Cyclo De Chile, Ltda.
SM-Cyclo of Canada, Ltd
Sumitomo (SHI) Cyclo Drive Europe, Ltd
SM-Cyclo U.K. Ltd
SM-Cyclo France E.U.R.L.
SM-Cyclo Italy Srl
SM-Cyclo Benelux BV
SM-Cyclo Scandinavia AB
SM-Cyclo Iberia, S.L.
SM-Cyclo Switzerland AG
Sumitomo (SHI) Cyclo Drive Germany, GmbH
Sumitomo (SHI) Cyclo Drive China, Ltd.
Tatung SM-Cyclo Co., Ltd.
SM-Cyclo of Korea Co., Ltd.
SM-Cyclo of Australia Pty., Ltd.
Sumitomo (SHI) Cyclo Drive Asia Pacific Pte. Ltd.
SM-Cyclo of Malaysia Sdn. Bhd.
SM-Cyclo of Thailand Co., Ltd.
SM-Cyclo of Hong Kong Co., Ltd.


3. From the First Cyclo to the Anniversary of the 10 Millionth Cyclo:

Year / Event
1911 / First DC Motor (3.7kW) Manufactured
1926 / Cyclo Drive Invented by Mr. L. Braren (West Germany
1931 / Established German Cyclo Corporation and Began Production on Cyclo Drive.
1938 / Technical Agreement with Cyclo GmbH and Sumitomo
1939 / Niihama Plant Established, Cyclo Drive Production Begins
1952 / Technical Agreement on Beier Variator with Liechtenstein HIVAG
1961 / 100,000 Cyclo Production Accomplishment & Nagoya Works Established
1966 / Sumitomo Machinery Corporation of America Established
1973 / One Million Cyclo Production Accomplished & Technical Agreement with Belgium HANSEN
1974 / Capital Investment in German Cyclo Corporation
1990 / 3 Million Cyclo Production Accomplishment
1993 / 5 Million Cyclo Production Accomplishment & Small Gearmotor Factory Established in Okayama Works
1994 / Cyclo Drive Plant Established in Tianjin, China
1998 / Gear-Box Factory Established in Okayama Works
2003 / Logistics Center Established in Shanghai, China & 10 Million Cyclo Production Accomplished


4. Overview of Power Transmission and Controls Business of Sumitomo Drive Technologies:
General Manager:
Naoki Takahashi (Director, Executive Vice President)
Our Business:
Development, Manufacturing, and Sales of Gear-Motors, Reducers, Gear-Box, Variators, and Inverters.
Number of Employees: 2500
Worldwide Facilities:
# 8 Factories
# 35 Assembly Centers
# 226 Sales Offices




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