JATCO (Headquartered in Fuji City, Shizuoka Prefecture, Japan: President & CEO, Shigeo Ishida: Capitalization, 29.9353 billion yen), Automatic Transmissions and Continuously Variable Transmissions (AT/CVT* ) manufacturer held an inauguration ceremony for JATCO Mexico, S.A. de C.V. (Headquartered in Aguascalientes City, Aguascalientes State, Mexico: President: Katsufumi Ito), our overseas affiliated company, on January 12^th 2006, and announced the expansion of production capacity in Mexico.

JATCO established JATCO Mexico, S.A. de C.V. in Mexico in April 2003, our first overseas production base, and have been of preparing for CVT production. The start of production of belt CVTs for medium FF (front-engine front-wheel-drive) vehicles took place already in November 2005, and the ceremony was the official introduction of the plant.
For the inauguration ceremony, there attended, Mr. Garca de Alba, the Economy Minister of the Federal Government of Mexico, Mr. Armando Reynoso, the governor of Aguascalientes State and other local officials, Mr. Yubun Narita, the Japanese Ambassador to Mexico, Mr. Itaru Koeda, Co-Chairman of the Board of Directors of Nissan Motor Co., Ltd., and 200 other guests.

JATCO have been promoting the production capacity expansion of new-generation CVTs in order to respond to globally growing demand for CVTs, which are drawing attention as state-of-the-art environmental technology. Besides the start of production at JATCO Mexico, S.A. de C.V., JATCO is currently increasing production capacity in the Yagi area (Yagi-cho, Nantan City, Kyoto Prefecture, Japan), and will continue to promote further expansions in production capacity both in Japan and overseas.

As a part of these activities, we have come to a decision to expand the production capacity of JATCO Mexico, S.A. de C.V.
The current annual production capacity of about 300,000 units will be increased in stages to about 400,000 units, and also new production lines will be developed with production capacity of about 300,000 units per year, enabling production increase of new-generation belt CVTs for medium FF vehicles from October 2007. In addition, the localization of production (in Mexico) of new-generation CVTs for large FF vehicles (currently being produced in Japan) for only NAFTA by May 2008 has been in the plan.
Given the prospect of further growth in demand for CVTs in NAFTA, the continual expansion of production capacity to about 800,000 units per year is being planned.
Along with this, approximately about 20 billion yen of investment for building expansions, production facilities and so forth is projected.
Moreover, there expected about 2,000 new jobs for local residents by this production increase in the future, which we believe it will contribute to the further economic growth of Mexico, and promotion of economic exchanges between Japan and Mexico.

NAFTA is the world’s largest market for automobile, and also for ATs and CVTs. More than one million/year of the automobiles being produced or imported in NAFTA are equipped with JATCO’s ATs and CVTs, and JATCO has a strong customer base within NAFTA already. Based on this foundation, JATCO will aim for further expansion in AT/ CVT sales in NAFTA, the largest AT/CVT market.

President Ishida made the following remarks at the inauguration ceremony of JATCO Mexico, S.A. de C.V..
We anticipate a steady expansion in the demand for CVTs as important technology which will make significant contributions to improved fuel efficiency, and reduced CO2 emissions, and countermeasures of global warming. JATCO Mexico, S.A. de C.V. is an important manufacturing base that will assure JATCO’s further growth and globalization. I would like to express my appreciation to the Federal Government of Mexico and the State of Aguascalientes, Nissan Motor Co, Ltd., and Nissan Mexico for their tremendous cooperation, which led us to this success of this inauguration ceremony, and which enabled us to announce the further expansion of production capacity. We continuously intend to contribute to the development of wonderful Mexico, the State of Aguascalientes, and to the Nissan Group."

Outline of JATCO Mexico, S.A. de C.V.