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Fiscal 2003 News
Strengthening the Operation Base in China

February 26, 2004

Sumitomo Heavy Industries, Ltd. has set up a new operation base in Shanghai to strengthen its business in the Chinese market.

The company has consolidated the offices of three local corporations in Shanghai, which will start its operation on March 1, 2004. This operation base will function as the representative office of SHI and the joint office of the local corporations for the businesses of gearmotors and plastic injection molding machinery. It will reinforce the marketing and procurement activities in Chine in enhancing the recognition of our products in China and strengthening the mutual relationship between business segments. The new office is located in the central area of the City of Shanghai for traffic convenience and equipped with the most up-to-date communications network including the TV conference system that is always connectable to Japan, in order to provide the office environment and higher work efficiency suited to the key operation base in China.

Sumitomo Heavy Industries (Shanghai), Ltd. was promoted from the SHI representative office in February 2004 and it will support the marketing activities of each business segment in the Chinese market positively and play the part as the service base in China for the precision control equipment. For this purpose, the Service Center of Cryogenics has been set up within the city and will start its support services to medical organizations and universities to which the cryocoolers have been delivered.

[Outline of Operation Base]
26th Floor, Raffles City (Office Tower) 268, Xi Zang Middle Road, Shanghai

Sumitomo Heavy Industries (Shanghai), Ltd.
Sumitomo (SHI) Cyclo Drive China, Ltd., Shanghai Office
SHI Plastics Machinery (Shanghai) Co., Ltd.

* Operation base for these three corporations Start of Operation: March 1, 2004

[Profiles of Local Corporations]
Sumitomo Heavy Industries (Shanghai), Ltd.

Established: February 2004

Business items:
Support of marketing activities and procurement of materials for the use in China Service of cryocoolers and other machines in China

Name: Sumitomo (SHI) Cyclo Drive China, Ltd., Shanghai Office

Business items:
Sale and service of various types of power transmission units and electric motors in China

Name: SHI Plastics Machinery (Shanghai) Co., Ltd.

Business items:
Sale and service of plastics injection molding machines in China