NIPPI Corp. to Become Wholly Owned Subsidiary

  Yokohama-based NIPPI Corporation, an affiliated company of Kawasaki, is set to become a wholly owned subsidiary next year, as announced on August 27. Following the approval of NIPPI shareholders in December, Kawasaki will exchange 1.40 shares of its stock for each share of NIPPI stock, assuming 100 percent ownership of the company on April 1, 2003.

  The two companies play a key role in Japan's aerospace industry. Regarding aerospace business as one of its cores, Kawasaki actively pursues new aircraft projects by allocating its management resources on a priority basis; while NIPPI, an aerospace specialist, develops businesses ranging from manufacturing parts for aircraft and space satellites to the maintenance of airplanes. Following the share exchange, Kawasaki will be able to maximize the comprehensive capabilities of the Group as a whole, which is expected to lead it to significant leaps as an aircraft manufacturer.

  Kawasaki and NIPPI first concluded an operating alliance in 1964. This was strengthened in 1970 when Kawasaki invested in NIPPI, and the two companies have cooperated closely ever since.