News Release

Feb. 2, 2004
Daifuku and Kito Corporation have reached agreement on acquisition of the Kito logistics system operation by Daifuku. The new company Daifuku Logistic Technology Co., Ltd. (DLT) to be launched on April 1, 2004 will take over the sales, engineering, design and service functions of the Kito business, with the exception of manufacturing and installation services. DLT will have a workforce of around 100, and projected turnover of 4 billion yen in its first year.
With this takeover Daifuku aims to supplement its lineup in logistics systems, increase access to business opportunities, and enhance its competitiveness on the international market. Kito for its part will now be able to concentrate management resources on its hoist and crane business, primarily on its world-renowned chain blocks.

Kito has a long history in Japan as a major manufacturer of small AS/RSs. The company has supplied over 4,000 warehouses, and has earned a reputation especially for its cold storage warehouses, warehouses designed to prevent explosions, and hazardous goods warehouses. DLT will inherit these assets and operate them in conjunction with Daifuku, in the process broadening the scope of Daifuku Group activities both in Japan and abroad. The structure following integration will be as follows:
Manufacturing and installation work: All manufacturing and installation work will be performed by Daifuku, utilizing optimal global procurement and bulk purchasing to reduce costs and increase the speed of operations.

Service: All service will be provided by the Daifuku Group, including that for existing Kito customers. Daifuku will also work with the new company to enhance customer satisfaction with various aspects of service such as the supply of parts and systems refits.

Development: Steps will be taken to consolidate duplicate projects and bolster technical capabilities, and to make significant savings in duplicated back-office expenses to boost profits.

Company profiles

Daifuku Co., Ltd.
Osaka, Japan

President:

Katsumi Takeuchi

Paid-up Capital:

8,023 million yen (as of April 1, 2003)

Net Sales:

144,108 million yen (Consolidated - Fiscal 2002)

Employees:

3,500 (Consolidated)

Business operations:

Auto production line systems, logistics systems, installation and service, semiconductor/LCD transport and storage systems, electronic equipment, car　washing machines

Kito Corporation
Yamanashi, Japan

President:

Shinjiro Kito

Paid-up Capital:

3,658 million yen (as of April 2003)

Net Sales:

20,700 million yen (Consolidated - Fiscal 2002)

Employees:

1,335 (total for Kito Group)

Business Operations:

Components (hoists and cranes), systems (logistics systems)

* New company
Daifuku Logistic Technology Co., Ltd.
3-2-11 Mitejima, Nishiyodogawa-ku, Osaka 555-0012 JAPAN

President:

Eijiro Urushizaki (Managing Director, Daifuku Co., Ltd.)

Paid-in Capital:

Approximately 150 million yen

Sales:

Annual turnover of 4,000 million yen (first year)

Employees:

Approximately 100