News Release 2004/TOKAI RIKA CO., LTD.

November 9, 2004

Tokai Rika Establishes New Subsidiary in Southern China, Holds Ground-Breaking Ceremony

Aichi, Japan, November 9, 2004 - Tokai Rika Co., Ltd. today announced that it has established a new manufacturing subsidiary in southern China and held a ground-breaking ceremony on November 3, 2004. The new company, named Foshan Tokairika Automotive Parts Co., Ltd., will produce security items, switches, and electronic products, commencing operations in May 2006. The company will serve as Tokai Rika's fourth production base in China, following Tianjin, Wuxi, and Suzhou. The new company will manufacture various parts, in addition to assembling products. Major operations will include casting magnesium steering locks, installing chips to the printed circuits boards, and forming resin.

The ground-breaking ceremony was splendid; guests included Mr. Yunxian Chen, deputy secretary of the Committee of Shunde District of Foshan, Mr. Toru Kuzuhara, president, Guangzhou Toyota Motor Co., Ltd., and Mr. Yoshihei Iida, chairman of the board, Tokai Rika Co., Ltd. During the ceremony, Mr. Iida commented, "We are determined to succeed in southern China's growing market, which is marked by intense competition in the automobile industry."

Foshan Tokairika Automotive Parts Co., Ltd. completed commercial registration on June 24, 2004. Start-up capital of USD 10 million (approximately 1.1 billion yen) was funded by Toyota Tsusho Corporation (5%), Rica Auto Parts Co., Ltd. (10%), and Tokai Rika Co., Ltd. (85%). The 16,000 m² production plant will occupy a 50,000 m² site in Shunde Industrial Park in Foshan City. Mr. Shinichi Irifune, general manager, South China Business Preparation Department, will serve as the president of the new company. The new subsidiary expects to hire 160 employees in 2006, and its sales target for that year is 1.4 billion yen. In 2010, sales are projected to reach 5 billion yen with employees expected to number 300.