Toyoda Machine Works, Ltd.: Transfer of Torsen Business

AICHI, Japan--July 30, 2003--Toyoda Machine Works, Ltd. ("TMW") headquartered in Kariya City, Aichi Prefecture is pleased to announce that it has reached agreement with Bosch Automotive Systems Corporation ("RBAJ") on the transfer of RBAJ's Torsen business on 31 August upon which TMW will assume full management control of the Torsen business.

The Torsen business consists of three of RBAJ's subsidiaries: Zexel Torsen Company, Ltd. (Saitama Prefecture), Zexel Torsen Inc. (USA), and Zexel Torsen S.A. (Belgium). These three companies will be transferred as a result of this transaction.

The driving force of the Torsen business is the Torsen Unit (torque responsive power differential system). Since this product allows for the realization of high driving performance , it has been widely adopted, in particular for sports cars and 4WD SUVs among the world's leading carmakers such as Toyota and Volkswagen (Audi) etc.

TMW's Automotive Systems has developed production and sales capabilities in the world's four major regions of Japan, the US, Europe, and Asia ex-Japan. As a system supplier with steering and driveline systems at its core, TMW is promoting the development of its global business through this transaction.

The integration of TMW's driveline business and the Torsen business more precisely means the establishment of a powerful products line-up composed of both TMW's competitive ITCC (electronic control standby 4WD) product, which already has dominant world market share, and the Torsen (torque responsive all-time 4WD) product. This allows for flexible and optimized application engineering that covers 4WD automobiles from compact to full-size. Thus, this integration greatly contributes to TMW becoming the No. 1 world supplier for driveline systems in the area.

Additionally, not only does this integration lead to a strengthening of products, it also expected to contribute significantly to the development of TMW's automotive business as a whole. A number of synergies are expected including enhancement of research and development capabilities and greater depth in personnel for global management and operation.

TMW forecasts Torsen business revenues in fiscal year 2005 of 11bn Yen with an overall aim of 20 bn Yen for the near future.

Company                    Toyoda Machine Works, Ltd.
Representative             President Yoshio Yunokawa
(6206:TSE, OSE, NSE 1st Section)