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Parker Hannifin Announces Business Alliance in Japan's Kuroda Precision

26 May 1999

Parker Hannifin Announces Business Alliance and Equity Investment in Japan's Kuroda Precision Industries

    TOKYO and CLEVELAND--May 25, 1999--Parker Hannifin Corporation and Tokyo-based Kuroda Precision Industries Ltd. today announced an alliance agreement and a $15.3-million investment to be made by Parker in 9.4 million newly issued shares of Kuroda, representing a 33.4-percent ownership stake in the company. The transaction is expected to close in late July.
    The strategic alliance agreement offers several growth opportunities for both companies in the worldwide factory automation market, to: 



--   Share in technology development;
--   Expand global marketing opportunities; and
--   Leverage operating capabilities to serve burgeoning automation
     markets in Japan, Europe and the Americas.


    The company said the alliance and investment establishes a strong base for Parker in the important Japanese market. "This is the right time for us to step up our participation in Japan," said Duane E. Collins, president and chief executive officer of Parker Hannifin. "This investment offers growth opportunities for both companies at a time when global demand for factory automation is on the rise. As in other investments we made last year in the Pacific Rim, we feel confident this alliance with Kuroda will generate similar growth gains as the market improves, and that is positive for shareholders."
    Referring to the alliance, Takashi Furukawa, president of Kuroda, said, "It is a beautiful day in May here in Japan. We are really pleased to have signed the agreement and welcome the equity participation of Parker. We wish for profitable growth of both partners through this business alliance, and Kuroda will do its best to enhance mutual business opportunities with Parker."
    Kuroda Precision Industries, Ltd., headquartered in the greater Tokyo area and traded on the Tokyo Stock Exchange, manufactures a broad range of factory automation products. With particular strength in pneumatic technology, the company's revenues for the year ended March 31, 1999 were approximately $120 million (14.408 million Yen). Kuroda has three manufacturing facilities and 700 employees in Japan.
    Parker Hannifin is the leading, diversified global manufacturer of motion, control, instrumentation and fluid flow components and systems for thousands of industrial and aerospace markets. For more information, visit the company's web site at www.parker.com.