Tokai Rika Purchases Canadian Seatbelt Manufacturer

TECUMSEH, Ontario, June 29 -- Tokai Rika Co., Ltd. and TRW Canada Limited have announced the purchase of TRW Canada's 60% interest in Quality Safety Systems (QSS), by a Canadian subsidiary of Tokai Rika. QSS employs 800 people in two plants in Ontario, Canada, and is a major supplier of seatbelts in North America, with annual sales in excess of US$100,000,000. Tokai Rika previously owned 40% of QSS. Terms of the purchase were not disclosed.

The acquisition of QSS will enable both Tokai Rika and TRW Automotive to pursue broader market opportunities. It also will enable Tokai Rika to take a more direct role in supporting QSS's customers, and to compete for orders from the Big Three and European vehicle manufacturers, as well as from its traditional customer base of Japanese transplants. In addition, the expansion of dedicated Tokai Rika manufacturing capacity is a necessary step for Tokai Rika to be able to pursue its goal to increase its share of the global seatbelt business to 20%.

About Tokai Rika

Tokai Rika, an automobile components supplier, has FY2003 sales of US$2.02 billion. Headquartered in AICHI, JAPAN, the company employs approximately 10,000 people in 13 countries. Its products include human interface systems and controls (switches and module/integration products and shift levers), security systems (keys and immobilizer systems), safety systems (seat belts and airbags) and aftermarket replacement parts and services. Tokai Rika news is available on the Internet at www.tokai-rika.co.jp